Planning Ahead: Smart Year-End Financial Moves
Michael Broadus

As the end of the year swiftly approaches, it's the perfect time to take charge of your financial planning. We get it—financial tasks can sometimes seem overwhelming. But remember, with proactive decision-making, comes empowerment. This blog will guide you through four actionable strategies to potentially enhance your financial well-being before December 31st.

Strategize Charitable Giving

Charitable giving can be a strategic part of your year-end financial plan. Consider tactics such as donation bunching or employing a donor-advised fund. If you're over 70½, utilizing a Qualified Charitable Distribution (QCD) from your IRA can be beneficial, allowing you to satisfy your required minimum distribution starting at age 73. These strategies not only benefit the causes you care about but also can provide potential tax advantages.

Maximize Retirement Contributions

Make sure you aren't leaving money on the table when it comes to retirement savings. For 401(k) accounts, the 2025 contribution limit is $23,500, with an additional $7,500 in catch-up contributions if you're over 50. For traditional and Roth IRAs, the limit is $7,000, plus a $1,000 catch-up. Contributing now can help reduce your taxable income and build wealth for the future.

Explore Roth IRA Conversions

This might be a year to consider converting traditional IRA funds into a Roth IRA, especially if you're in a lower tax bracket. Roth conversions can offer significant tax advantages, though they are not suitable for everyone. It's essential to evaluate your specific situation annually with a financial professional to make the most informed decision.

Fund Your HSA

Your Health Savings Account (HSA) presents unique benefits. For 2025, individuals can contribute up to $4,300 and families up to $8,550. HSAs come with triple tax benefits: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses—making them excellent tools for both short- and long-term financial planning.

Taking a little time now to implement these strategies can lead to significant financial outcomes in the coming year. Not every strategy fits every situation, so we strongly encourage consulting with a financial professional or a certified public accountant (CPA) to tailor these strategies to your individual circumstances. Ready to evaluate your options? Consider scheduling a financial check-in today.