Your Essential Year-End Financial Checklist: Steps to Maximize Savings Before December 31

By Tyler Howard, CFP^®, MBA, Financial Planning Specialist

As 2025 begins to wind down, the final months of the year present a valuable opportunity to take charge of your financial well-being. Whether you're fine-tuning your retirement plans, optimizing your tax strategy, or reassessing your insurance coverage, now is the ideal time to make thoughtful decisions that can help you save money, reduce stress, and start the new year with confidence.

To help you make the most of this crucial time, we’ve created a year-end financial checklist highlighting four essential areas to review before December 31. From maximizing your savings to ensuring your financial plans align with your long-term goals, this guide is designed to support informed, proactive decisions that can set you up for a more secure and successful year ahead.

1. Review Your Retirement Contributions — Have you maximized your retirement savings for 2025?
   
   
   • 401(k) or 403(b) Contribution Limits: You can contribute up to $23,500 (or $31,000 if you’re age 50 or older).
   • IRA Limits: Traditional and Roth IRAs allow up to $7,000 ($8,000 if you’re age 50 or older).
   • Catch-Up Contributions: If eligible, consider using these to boost your savings. Age 50–59: The standard catch-up contribution is $7,500 for the 2025 tax year. This is in addition to the regular employee contribution limit of $23,500, bringing the total for eligible participants to $31,000. Age 60–63 (Super Catch-up): The catch-up limit increases to $11,250 for participants who are 60, 61, 62, or 63 by the end of the year. For those in this age bracket, the total maximum contribution is $34,750.
   • Employer Match: Ensure you’ve contributed enough to receive your organization’s full employer match.
   • Rebalance Investments: Confirm your portfolio aligns with your goals and risk tolerance.
     

      Tip: A slight increase to your 401(k) or 403(b) contributions now can yield significant long-term benefits.

2. Update Health Insurance & Benefits — Open enrollment is your chance to reassess healthcare and related benefits, and some organizations' yearly sign-up period takes place in autumn.
   
   
   • Compare Plans: Review changes in premiums, deductibles, and coverage for 2026.
   • FSAs: Use Flexible Spending Account funds before the year-end deadline, if they don’t roll over.
     
   • HSAs: Health Savings Accounts allow contributions of up to $4,150 (individual) or $8,300 (family) for 2025, plus $1,000 catch-up if you’re age 55 or older—tax-free.
     
   • Update Personal Info: Ensure dependents and beneficiaries are current.
     
     Note: Open enrollment deadlines vary, so act promptly!
     
     
3. Fine-Tune Your Year-End Giving Strategy — Charitable donations can support your favorite causes and reduce your tax burden.
   
   
   • Make Donations by 12/31: Only gifts made by year-end are deductible for 2025.
     
   • Give Appreciated Assets: You may avoid capital gains tax by donating appreciated stock (A security that has increased in value since you purchased it).
     
   • Track Receipts: Keep written records for all donations over $250.
     
   • Consider Donor-Advised Funds (DAFs): A donor-advised fund (DAF) is a charitable giving vehicle administered by a public charity that allows donors to make a tax-deductible contribution and grow the funds tax-free while deciding which charities to support. Once you make the donation, the DAF is irrevocable and the sponsoring organization legally controls the funds, but the donor retains advisory privileges over how the sponsor invests and distributes the funds. DAFs may be useful for bundling gifts and planning future charitable distributions.
     
     

     Tip: You must itemize deductions to claim charitable gifts, so confirm with your tax advisor if this strategy benefits you.

4. Start Preparing Tax Documents — Organizing now can simplify tax season and may mean fewer headaches later.

• • Gather Important Forms: Collect W-2s, 1099s, mortgage interest statements, investment records, etc.
  • Review Withholdings and Estimated Taxes: Ensure payments meet IRS “safe harbor” rules to avoid underpayment penalties. This rule allows taxpayers to avoid an underpayment penalty by paying a minimum baseline tax amount throughout the year.
  • Use Available Tax Credits: Explore credits for education, childcare expenses, or energy-efficient home upgrades.
  • Talk to a Tax Pro: A year-end review may uncover savings opportunities, such as Roth conversions or tax-loss harvesting. Tax-loss harvesting involves selling those positions with investment losses to offset your gains and income and possibly reduce taxes. Make sure your tax advisor has experience and expertise providing tax guidance to clergy, since clergy’s dual tax status is distinct from the status of other workers.

Final Thoughts

Taking time to address these areas can help you close out 2025 with confidence and clarity. If you need assistance with any of these tasks, schedule a meeting with your tax advisor or financial planner. Here’s to a financially strong finish to 2025—and preparing yourself for a great start to 2026!