Most financial planning is ongoing ??? something you do year-round. But the tax code is built around calendar years, which means some moves are only available until December 31st. After that date, the window closes and you can't go back.
This checklist covers the 10 most impactful year-end financial moves, roughly ordered by how time-sensitive and high-value they are. Not every item applies to every person ??? but working through this list once a year ensures you're not leaving deductions, contributions, or tax savings on the table.
1. Max Out Your 401(k) (or Get as Close as You Can)
The 2025 401(k) contribution limit is $23,500 ($31,000 if you're 50 or older). Contributions must be made through payroll deduction ??? which means if you want to increase your contribution for the remaining paychecks of the year, you need to act now. Many plan administrators require changes to be submitted several weeks before the paycheck they affect.
Even if you can't reach the maximum, increasing your contribution rate for the final months adds to your tax-advantaged balance for this year and often carries over as the new default into next year.
2. Contribute to Your IRA ??? You Have Until Tax Day, But Don't Wait
IRA contributions for 2025 can be made until April 15, 2026 ??? so this isn't technically a December 31st deadline. But most people who intend to contribute and don't do it before year-end never get around to it. The limit is $7,000 ($8,000 if 50+). If you haven't contributed yet, open the calendar alert now for January.
3. Harvest Tax Losses in Your Taxable Brokerage Account
Tax-loss harvesting means selling investments that have declined in value to realize a capital loss ??? which can offset capital gains you've realized elsewhere, reducing your tax bill. Losses in excess of gains can offset up to $3,000 of ordinary income per year, with any remaining losses carried forward to future years.
The December 31st deadline is firm ??? losses must be realized (the sale must settle) before year-end to count for this tax year. The wash-sale rule prevents you from buying the same (or substantially identical) investment within 30 days before or after the sale, so plan replacements accordingly.
4. Review and Rebalance Your Investment Portfolio
If a strong year in equities has shifted your portfolio allocation significantly away from your target ??? say from 70/30 stocks/bonds to 80/20 ??? year-end is a natural time to rebalance. In tax-advantaged accounts (401k, IRA), you can rebalance without tax consequences. In taxable accounts, rebalancing that involves selling appreciated assets generates capital gains ??? coordinate with tax-loss harvesting if possible.
5. Use Your Flexible Spending Account (FSA) Balance
FSA funds are use-it-or-lose-it for most plans ??? any unused balance forfeits at year-end (though some plans allow a $640 rollover or a 2.5-month grace period; check your plan documents). If you have an FSA balance, accelerate eligible healthcare spending before December 31st: glasses, dental work, prescriptions, over-the-counter medications, and hundreds of other eligible items.
6. Make Charitable Contributions (If You Itemize)
Charitable donations are deductible in the year the contribution is made ??? cash, check, or credit card by December 31st. If you itemize deductions and plan to give, giving before year-end is more tax-efficient than giving in January. Consider bunching multiple years of charitable giving into one year to exceed the standard deduction threshold if you're close to the line.
Donating appreciated securities directly to a charity (rather than selling them first and donating cash) avoids capital gains tax entirely while still deducting the full fair market value ??? a double tax benefit.
7. Review Your Withholding and Estimated Tax Payments
If you've had a significant income change ??? new job, side income, bonus, investment gains, divorce ??? your tax withholding may be off. Too little withheld means a surprise tax bill (and possible underpayment penalty) in April; too much means you've given the government an interest-free loan all year.
Use the IRS Tax Withholding Estimator to check where you stand. If you're under-withheld, you can make a Q4 estimated tax payment by January 15th to reduce or eliminate penalties.
8. Check Your Debt-to-Income Ratio Before Any Big 2026 Plans
If you're planning to apply for a mortgage, refinance, or any significant loan in early 2026, your DTI at application is what matters. Year-end is a good time to pay down balances that affect your monthly minimum payments ??? particularly credit cards ??? before the application. Use our Debt-to-Income Calculator to see where you stand and what moves the needle most.
9. Update Beneficiary Designations
Retirement accounts, life insurance policies, and some bank accounts transfer by beneficiary designation ??? bypassing your will entirely. If you've had a major life change (marriage, divorce, birth of a child, death of a named beneficiary) and haven't updated your designations, your assets may go to the wrong person regardless of what your will says. This takes 10 minutes to review online for each account.
10. Calculate Your Net Worth and Set 2026 Goals
Year-end is the natural annual checkpoint for your personal financial snapshot. Calculate your net worth (total assets minus total liabilities), compare it to last year's figure, and identify the two or three financial moves that would have the highest impact in the coming year. See How to Calculate Your Net Worth for a step-by-step guide.
Use our Savings Calculator and Retirement Calculator to set concrete targets. Update your Net Worth Calculator to see your year-end snapshot -- and use the Tax Bracket Calculator to confirm your 2026 withholding is dialed in before January. For 2026 ??? specific dollar amounts and account balances ??? rather than vague intentions.