4 Smart Financial Moves Before Year-End

With the end of the year fast approaching, now's the perfect time to take control of your financial planning. We understand that financial to-dos can feel overwhelming, but proactive decision-making can be incredibly empowering. This article will help you identify four smart, actionable strategies to enhance your financial well-being before December 31st.

Explore Roth IRA Conversions

Roth conversions can be an effective way to secure tax-free growth for your retirement savings. If you find yourself in a lower tax bracket this year, it might be an opportune time to consider a conversion. However, this strategy isn't for everyone, so it's important to evaluate your individual circumstances each year.

Maximize Retirement Contributions

The 2025 contribution limits for retirement accounts are key to building your future wealth. You can contribute up to $23,500 to your 401(k) (plus a $7,500 catch-up if over 50), and up to $7,000 to your traditional or Roth IRA (plus a $1,000 catch-up if over 50). Taking full advantage of these limits can help reduce your taxable income.

Fund Your HSA

Health Savings Accounts (HSAs) offer triple tax benefits and can be a powerful tool for both short-term and long-term planning. For 2025, the limits are $4,300 for individuals and $8,550 for families. Don't miss out on this opportunity to enhance your savings with tax advantages.

Strategize Charitable Giving

Consider strategies like donation bunching or utilizing a donor-advised fund to maximize your charitable impact. If you're over 70½, using a Qualified Charitable Distribution (QCD) from an IRA can also fulfill your required minimum distribution once you turn 73, providing a win-win solution.

Taking a little time now to evaluate your options can make a significant difference in your financial outcomes. Remember, not all strategies are suitable for everyone, so we encourage you to consult with a financial professional or a CPA. Why not schedule a financial check-in and see where you stand?