Your End of Year Financial Checklist

Closing out the year is a chance to tighten up your planning, reduce surprises at tax time, and start January with clarity. This checklist highlights the key deadlines and decisions most people should review before December 31, along with a few early new year reminders.

Disclaimer: This is for educational and informational purposes only. Please consult with a financial professional before making changes to your investments. Every person’s financial situation is different and requires diligence before Plan changes are made.

Key Takeaways

• Many tax and retirement deadlines fall on December 31, including RMDs, Roth conversions, and workplace plan deferrals
• HSAs and FSAs have special rules that can help or hurt you depending on how you use them
• Several investment and tax planning moves must be completed by year end to count for this tax year
• IRA and HSA contributions can continue into the following tax season
• Focus on strengthening one finance habit at a time

Now Through December 31st

Use Flexible Spending Accounts Before They Expire- Some FSAs follow a use it or lose it rule. Others allow a limited carryover or a short grace period. Check your employer plan so you do not leave unused dollars behind.

Max Out Your HSA if You Are Eligible- HSAs reduce taxable income and allow tax-free investment growth. Review your contributions and get as close to the annual limit as your cash flow comfortably allows.

Avoid Underpayment Penalties- If you received bonuses, exercised stock options, realized large gains, or completed Roth conversions, confirm that your paycheck withholding and estimated payments cover this year's taxes.

Review Taxable Accounts for Loss Harvesting- Harvest losses to offset realized gains. If you plan to re-enter a position, be mindful of the wash sale rules so you do not lose the tax benefit.

Update Your Workplace Retirement Contributions- 401(k), 403(b), and 457 salary deferrals must be made by payroll before December 31. These plans cannot be funded after year end for the prior tax year.

Complete Any Roth Conversions- Conversions must be finished by December 31 to count for this tax year. The IRS uses your total pretax IRA balance on December 31 for the pro rata calculation, so any planned rollovers into a 401(k) to remove pretax IRA funds must be done before year end.

Take Required Minimum Distributions- If you are age 73 or older, confirm all RMDs are taken from IRAs and employer plans by December 31. If this is your first RMD year and you delayed to April 1, remember you still owe the current year RMD by December 31.

Review Inherited IRA Rules- Beneficiaries who are under the 10 year rule or subject to annual beneficiary RMDs should confirm whether a withdrawal must be taken by year end.

Finalize Charitable Contributions- If you itemize deductions, consider bunching gifts or contributing to a donor advised fund. If you are age 70½ or older, qualified charitable distributions from IRAs can satisfy part of your RMD and reduce taxable income.

January to March: Early Year Clean Up

Use Any FSA Grace Periods- Some health FSAs allow up to 2.5 additional months to incur expenses. Many plans also have a separate period to submit last year's claims.

Re-Enroll if You Have an FSA Carryover- Carryover features often require you to re-enroll in the new plan year to use the carried funds. Check your employer rules.

By the Tax Filing Deadline (April 15th)

Make IRA and Roth IRA Contributions- You can contribute for the prior tax year until the tax deadline. Filing an extension does not extend the IRA contribution deadline.

Add to Your HSA for the Prior Year- HSA contributions can be made up to the tax deadline. Confirm the contribution is coded for the correct year.

SEP IRA and SIMPLE IRA Timing Rules- Business owners may be able to make employer SEP or SIMPLE contributions up to the extended tax deadline. Employee SIMPLE deferrals must be elected during the year.

For 2026 and beyond

Build one finance habit a quarter- Personal finance can feel overwhelming when you commit to it all at once. Consider focusing on drastically learning and improving one area at a time. As cliché as it sounds, small steps like this can make a drastic impact. If you don’t feel confident about investing, commit to learning helpful frameworks that can be applied in real-world scenarios. Use free resources like this blog to develop a greater understanding of what you can do and then apply your knowledge. If you self-identify three areas of your personal finances that you wish to hone, within 9 months (3 months each) you could drastically improve your outlook. Small consistent steps and make a large impact. And you do not have to do it alone. We will be happy to support you on your journey.