6 Smart Financial Moves Before Year-End
The clock is ticking.
With the holidays around the corner and 2026 fast approaching, now’s the time to check in on your finances and make smart, intentional moves before year-end.
From maximizing retirement contributions to reviewing your estate plan, here are six strategies to consider while there’s still time to act.
1. Revisit Your Tax Picture with Tax-Loss Harvesting
While long-term investing often means riding out market ups and downs, there are times when strategic action can help manage your tax bill. Tax-loss harvesting involves selling an investment at a loss to offset capital gains—and potentially up to $3,000 of ordinary income—this year.
You can also carry forward unused losses to future years. Just be mindful of the IRS wash sale rule, which requires waiting at least 30 days before repurchasing a “substantially identical” security.
Because the rules are nuanced, it’s wise to work with a tax or financial professional before making moves.
2. Consider a Roth IRA Conversion
A Roth IRA conversion means moving money from a traditional IRA into a Roth IRA and paying taxes on the converted amount now, with the goal of enjoying tax-free withdrawals in retirement.
This strategy can make sense if you expect to be in a higher tax bracket later, want to limit future required minimum distributions (RMDs), or plan to leave tax-free assets to heirs.
Since a conversion increases your taxable income for the year, timing and partial conversions are worth considering. Your advisor can help weigh the trade-offs.
3. Maximize Charitable Giving Opportunities
Year-end is prime time for charitable donations—nearly a third of all annual giving happens in December. Beyond cash gifts, consider donating appreciated securities, which may allow you to avoid capital gains tax.
If you’re 70½ or older, you can also use a Qualified Charitable Distribution (QCD) from an IRA to give directly to a qualified charity—up to $108,000 per person in 2025—while potentially satisfying your RMD.
A Donor-Advised Fund (DAF) can also be a powerful tool, letting you make a gift now and recommend grants to charities over time.
4. Make Catch-Up Retirement Contributions
If you’re age 50 or older and still working, you may be eligible to make catch-up contributions to your workplace retirement plan or IRA.
For 2025, the SECURE Act 2.0 adds an extra boost for those turning 60–63, allowing even higher catch-up amounts in certain plans. These additional contributions can help strengthen your retirement savings in a tax-advantaged way.
5. Review Your Estate Plan
Major life changes—like a birth, marriage, divorce, or relocation—can mean it’s time to update your estate documents.
Consider:
Reviewing beneficiary designations on retirement accounts and insurance policies
Confirming your health care proxy and power of attorney are current
Discussing your wishes with family to help avoid confusion later
Using the annual gift tax exclusion ($19,000 per recipient in 2025) to transfer wealth tax-efficiently
6. Boost 529 College Savings Contributions
If you have education savings goals, consider making 529 plan contributions before year-end. While contributions aren’t federally deductible, more than 30 states offer state tax incentives—often with a December 31 deadline.
You can also take advantage of gift tax exclusions or “superfund” up to five years’ worth of contributions at once.
Making Your Year-End Assessment
The last quarter of the year is the perfect moment to step back, assess your progress, and take action on strategies that can have a meaningful impact on your taxes, retirement readiness, and overall financial picture.
At VL Wealth, we work with clients to identify which moves make sense for their unique goals—and to put them in place before deadlines hit. If you’d like to review your year-end opportunities, we’re here to help.
Important Disclosure:
This content is for informational purposes only and not a substitute for personalized tax, legal, or financial advice. Consult your qualified professionals before making changes to your strategy.
1 Fidelity, March 26, 2025
2 Fidelity, May 30, 2025
3 Investopedia, November 10, 2024
4 Investopedia, March 30, 2025
5 Non-Profits Source, 2025
6 Fidelity, June 2025
7 Nasdaq, March 4, 2024
8 Lord Abbett, June 2025
9 Charles Schwab, June 2025
10 Savingforcollege.com, May 9, 2025