At the end of the year, it’s natural to shift your attention toward holidays, family, and a much-needed break. But it’s also a great time to check in on your finances. Handling a few year-end financial tasks can strengthen your financial foundation, reduce your upcoming tax bill, and give you a clearer starting point for the year ahead.

Below is a list of year end financial tasks that help you wrap up this year and prepare for the next one.

Maximize Your Retirement Contributions

If you’re able, try to contribute as much as possible to tax-advantaged retirement accounts like a 401(k), 403(b), or Traditional/Roth IRA before the deadline. Contributions to traditional retirement accounts may reduce your taxable income, and Roth contributions can grow tax-free.

If your employer offers a match, make sure you contribute enough to receive the full benefit. It’s essentially free money toward your retirement savings.

Don’t forget your HSA

If you’re enrolled in a high-deductible health plan, you may be eligible for a Health Savings Account (HSA). HSAs are triple tax-advantaged accounts: they offer tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. If you haven’t maxed out your contribution yet, year-end is a good time to catch up.

In some cases, maxing out your retirement accounts and HSA can even push you into a lower tax bracket and lower your adjusted gross income (AGI) enough to help you qualify for other tax breaks.

Spend Down Your Flexible Spending Account (FSA)

Unlike HSAs, Flexible Spending Accounts (FSAs) typically operate on a “use it or lose it” basis. Some employers offer either a short grace period or the ability to carry over a small portion into the next year, but not always.

Review your balance now and make a plan to use remaining funds on eligible expenses such as prescriptions, over-the-counter medications, dental work, or vision care.

Make Charitable Donations

Year-end is a great time to support causes you care about and potentially lower your taxable income. Charitable contributions made by December 31 count toward this year’s tax return.

Consider “bunching” your donations

If you don’t typically itemize deductions, you may benefit from grouping several years’ worth of charitable donations into a single year. This can help you exceed the standard deduction and make itemizing worthwhile. A financial advisor or tax advisor can help you explore whether this approach fits your situation.

Gift Assets to Loved Ones

If you plan to give financial gifts to family, such as helping a child with a down payment or transferring appreciated stock or an interest in a closely held business, year-end is a natural time to do so.

The IRS allows you to gift up to a certain amount each year without triggering gift tax reporting. For 2025, that’s $19,000 per person ($38,000 per married couple).

Gifting can be a thoughtful way to support loved ones while reducing the size of a future taxable estate.

Review and Rebalance Your Investment Portfolio

A lot can happen in the markets over the course of a year. Reviewing your investment accounts now helps ensure your asset allocation still aligns with your goals, risk tolerance, and timeline.

Rebalancing, which simply means adjusting your mix of stocks, bonds, or other assets, keeps your financial plan on track. For example, if stocks performed well and now make up a larger share of your portfolio than intended, trimming them back may help reduce risk.

Discuss Capital Loss Harvesting With Your Advisor

If some of your investments lost value this year and others had big gains, tax-loss harvesting may be an option. This involves selling investments at a loss to offset capital gains elsewhere, potentially lowering your tax bill.

Tax loss harvesting requires careful timing and attention to IRS rules (like wash-sale restrictions), so be sure to discuss it with your financial advisor.

Check Your Credit Report

Your credit report affects everything from loan approvals to insurance rates, so reviewing it annually is a smart habit. Through AnnualCreditReport.com, you can access free reports from all three major credit bureaus. Look for:

• Accounts you don’t recognize
• Incorrect personal information
• Signs of potential identity theft

Addressing issues early is far easier than trying to fix them when you’re in the middle of applying for a mortgage or other type of loan.

Review Subscriptions and Memberships

Over the course of a year, it’s easy to accumulate digital subscriptions, apps, memberships, or recurring charges you no longer need.

Take a few minutes to scroll through your bank and credit card statements, cancel what no longer serves you, and realign your spending with what actually adds value to your life.

Take Your Required Minimum Distributions (RMDs)

If you’re 73 or older, you may need to take Required Minimum Distributions from traditional retirement accounts before December 31. Missing an RMD can result in hefty penalties, so make sure you know your required amount and withdraw it on time.

If you don’t need the money for living expenses, consider using it for qualified charitable distributions (QCDs). If you’re at least age 70.5, you can donate up to $108,000 directly from your retirement account to the charity. This bypasses your income but counts toward your RMD amount for the year.

Set Financial Goals for the Coming Year

Once you’ve reviewed your accounts, spending, and progress toward long-term goals, take time to set intentions for next year. Your goals might include:

• Building or replenishing an emergency fund
• Paying off high interest debt
• Start saving money for your child’s education
• Increasing retirement contributions
• Creating a better system for organizing important documents
• Shopping your insurance policies to find a lower rate
• Refinancing your mortgage or car loan with lower interest rates
• Following a monthly budget

Goals don’t need to be big. They just need to be clear. Even one small step each month can create real momentum toward improving your financial situation.

A Strong Finish Sets Up a Strong Start

Year-end personal finance tasks shouldn’t feel overwhelming. Remember, you don’t have to do it all. Just set some time aside and tackle the ones that appeal most to you. You’ll enter the new year more organized, more confident, and better prepared for whatever comes next.

If you’d like help getting your financial paperwork in order or creating a system that supports your goals, you don’t have to do it alone. A little guidance can make the process easier, and help you start the new year with peace of mind.