Plan Smartly: 4 Financial Moves Before Year-End

As the year-end quickly approaches, it's the perfect time to seize control of your financial planning. It's understandable if your financial to-dos feel daunting, but remember: proactive decision-making is empowering. We're here to help you identify four intelligent, actionable strategies to enhance your financial well-being before December 31st.

Explore Roth IRA Conversions

Have you considered a Roth IRA conversion this year? If you find yourself in a potentially lower tax bracket, it could be the right move to take advantage of. Roth conversions allow you to pay taxes now, so potential future withdrawals are tax-free. However, they aren't a universal solution — you should reassess this strategy every year based on your unique situation. Consulting with a financial advisor is a wise step to ensure it's right for you.

Strategize Charitable Giving

Charitable giving is not only generous, but it can also be strategic. Consider donation bunching or utilizing a donor-advised fund. If you're over 70½, using a Qualified Charitable Distribution (QCD) from your IRA can not only contribute to charity but also help satisfy your required minimum distribution once you turn 73. Engaging in some thoughtful planning can maximize your charitable impact and tax benefits.

Maximize Retirement Contributions

Retirement planning isn't just about the future — it can help you right now. For 2025, the contribution limits for 401(k)s are $23,500, with an extra $7,500 catch-up if you're over 50. For traditional or Roth IRAs, the limits are $7,000, plus a $1,000 catch-up if you're over 50. By maximizing these contributions, you can reduce your taxable income for the year and grow your wealth for the future.

Fund Your HSA

Don't overlook your Health Savings Account (HSA) as a part of your financial strategy. The 2025 HSA limits are $4,300 for individuals and $8,550 for families. With its triple tax benefits—tax-free contributions, growth, and withdrawals for medical expenses—an HSA can serve as a powerful tool for both short-term needs and long-term savings.

Taking a little time now to assess and implement these strategies could significantly improve your financial outcomes in the coming year. While not every strategy may fit your situation, consulting with a financial professional or CPA can guide you. Start evaluating your options or schedule a financial check-in to ensure you're on the right path for an empowered financial future.