Year-End Financial Checklist: 15 Money Moves Before January

Check your 401(k) contribution total and calculate

Check your 401(k) contribution total and calculate how much room you have left before the $24,500 limit (or $32,500 if you're 50+). Increase your final paychecks' contribution percentage to max it out. For your IRA, you technically have until April 15, but contributing by December 31 gives your money more time to grow.

If your employer offers a Roth 401(k) option, consider splitting contributions between traditional and Roth based on your current tax bracket. Higher brackets benefit more from traditional (pre-tax) contributions, while lower brackets benefit from Roth (post-tax, tax-free growth).

Review your taxable brokerage account for investments

Review your taxable brokerage account for investments trading below your purchase price. Selling these at a loss creates a tax deduction — losses offset capital gains dollar-for-dollar and up to $3,000 of ordinary income. Unused losses carry forward to future years.

Important: the wash-sale rule prevents you from buying the same or substantially identical security within 30 days before or after the sale. Swap into a similar but not identical fund (e.g., sell one S&P 500 fund and buy a total market fund) to maintain your market exposure while capturing the tax benefit.

Flexible Spending Accounts (FSAs) typically have a

Flexible Spending Accounts (FSAs) typically have a use-it-or-lose-it deadline of December 31. Some employers offer a $610 carryover or 2.5-month grace period — check your specific plan. Schedule any remaining dental, vision, or medical appointments to use up FSA funds.

HSA contributions can be made until April 15 of the following year, but contributing by December 31 maximizes growth time. The 2026 HSA limit is $4,400 for individuals and $8,750 for families, plus $1,000 catch-up if you're 55+. HSAs offer triple tax advantages — contribute pre-tax, grow tax-free, withdraw tax-free for medical expenses.

If you're close to the standard deduction

If you're close to the standard deduction threshold, consider bunching two years' worth of charitable donations into one year to push above it and itemize. Donate appreciated stock directly to charity — you avoid capital gains tax and receive a deduction for the full market value.

For those over 70½, qualified charitable distributions (QCDs) from your IRA satisfy your required minimum distribution while keeping the distribution out of your taxable income. This is one of the most tax-efficient giving strategies available.

Open enrollment for many employer benefits plans

Open enrollment for many employer benefits plans ends in December. Review your health insurance, dental, vision, and life insurance options. Calculate whether a high-deductible health plan with HSA saves you money versus a traditional plan. Update coverage levels for any life changes (marriage, baby, new home).

Shop auto and home insurance rates — getting quotes from 3-5 providers takes a few hours but can save $300-800 annually. Review your liability coverage and consider an umbrella policy if your net worth exceeds your current liability limits.

Review beneficiaries on all retirement accounts, life

Review beneficiaries on all retirement accounts, life insurance policies, bank accounts, and investment accounts. Beneficiary designations override your will, so outdated beneficiaries (like an ex-spouse) can cause serious problems. Update after any marriage, divorce, birth, or death.

If you don't have a will, make creating one a priority. Online services like Trust & Will or FreeWill make basic estate documents affordable ($150-300). At minimum, every adult needs a will, healthcare power of attorney, financial power of attorney, and beneficiary designations on all accounts.