Year-End Financial Checklist
Complete your year-end financial review. Maximize tax savings, optimize retirement contributions, and prepare for the new year.
December isn't just about holidays—it's the last chance to make tax-smart moves before the year ends. From maxing out retirement contributions to harvesting tax losses, the decisions you make now can save thousands.
This year-end financial checklist ensures you don't miss critical deadlines and start the new year on solid financial footing.
🫙 The Year-End Jar Audit
Think of December as the time to audit all your financial jars:
Retirement Jar: Did you contribute enough? Max out if possible before Dec 31.
Tax Jar: Can you reduce taxes through deductions, losses, or deferring income?
Insurance Jar: Do your policies still fit your life? Open enrollment is your chance to switch.
Goals Jar: What did you accomplish? What's next year's priority?
Critical December 31 Deadlines
These items must be done by December 31—no extensions:
401(k) contributions: The final payroll deduction of the year is your last chance.
Tax-loss harvesting: Sell losing investments to offset gains. Watch the wash sale rule (can't rebuy substantially identical securities within 30 days).
Charitable donations: Cash, appreciated stock, or required minimum distribution (QCD) donations.
FSA spending: Most plans have use-it-or-lose-it rules (some allow $610 rollover or 2.5 month grace period).
Roth conversions: Convert Traditional IRA to Roth if it makes sense for your tax situation.
Tax Strategies to Consider
Bunching deductions: If you're close to the itemization threshold, bunch two years of charitable donations into one year.
Harvesting gains in low-income years: If you're in the 0% capital gains bracket, consider selling appreciated assets and immediately rebuying (legal, unlike wash sales for losses).
Income timing: Can you defer a bonus or invoice to January? Or accelerate income if you'll be in a higher bracket next year?
Prepaying expenses: Pay January's mortgage in December for the interest deduction (if itemizing). Same with state income tax (subject to SALT limits).
Year-End Investment Review
Rebalance your portfolio: If stocks outperformed bonds, your allocation may have drifted. Bring it back to target.
Check asset location: Are tax-inefficient assets (bonds, REITs) in tax-advantaged accounts?
Review fund performance and fees: Are you paying more than 0.5% in fees? Consider switching to lower-cost index funds.
Take required minimum distributions: If you're 73+, take RMDs by Dec 31 to avoid the 25% penalty.
Frequently Asked Questions
You can contribute to a Traditional or Roth IRA until April 15 of the following year. However, 401(k) contributions must be made by December 31. If you're trying to reduce this year's taxes, prioritize maxing out the 401(k) first.