Year-End Money Sprint: 6 Moves Before the Ball Drops

The New Year’s Eve countdown to midnight isn’t just for champagne and confetti. It’s also your last chance to make some smart financial moves before the calendar flips.

We know it’s a busy time and you can’t do everything at once. So take a look at our top recommendations for you, depending on your personal situation.

1. EVERYONE: SIMPLIFY YOUR FINANCIAL LIFE FOR 2026

Is there a more stressful time than the holidays? We can’t help you cook a family feast or shop for last-minute gifts, but there might be ways we can help reduce your mental load when it comes to your financial plan.

If you have a 401(k) or other employer retirement plan account (or several of them), we may be able to manage them along with your other investments – with strategic rebalancing and an asset mix personalized for you, all coordinated within your overall financial plan.

Contact your financial advisor to talk about delegating management of your 401(k) so you can get it off your plate. And consider these other ways to simplify, too:

• Consolidate your other outside assets: Fewer statements, fewer logins, less hassle.
• Stop the endless stream of paperwork: Go digital where possible and shred what you don’t need.
• Schedule next year’s check-in: Book your advisor meeting now so it doesn’t fall through the cracks.

2. 65+: PULL INCOME UP

If you’re a senior, the One Big Beautiful Bill Act gives you a reason to consider pulling income into 2025. Those 65 or older can now claim an extra $6,000 deduction ($12,000 for married couples who are both age 65 or older) on top of the usual deduction. You can get it whether you itemize or not, but note that it phases out for higher incomes.

It could give you more space for larger withdrawals or Roth conversions. Talk to your advisor if you think you might want to take advantage of it.

3. STANDARD DEDUCTION TAKERS: SEE IF ITEMIZING MAKES SENSE AGAIN

OBBBA has also raised the limit for the state and local tax deduction (popularly known as the SALT limit) from $10,000 to $40,000, which could make itemizing worthwhile again if you live in a high-tax state or own property (but note that, as with the senior deduction, there’s an income phaseout).

Compare your potential itemized deductions (SALT, mortgage interest, charitable gifts, medical expenses) to the standard deduction: $31,500 for married filing jointly, $15,750 for single filers, and $23,625 for heads of household. If your itemized deductions exceed the standard deduction, it could save you money.

If you’re going to itemize, you can consider things like:

• Supercharging your charitable contributions (but see the next section)
• Prepaying property taxes
• Scheduling big medical procedures

If you get them in before New Year’s, they could all be deductible on your upcoming taxes. Just make sure you know where there are deduction caps or adjusted gross income limits.

4. CHARITABLE GIVERS: GIVE BIG (OR HOLD OFF) BEFORE THE RULES CHANGE

OBBBA again: Starting in 2026, charitable deductions get trickier – a new 0.5% “floor” means the first slice of your giving won’t count, and the value of the deductions for high earners will be capped at 35%, even if you’re in the 37% bracket. On the flip side, anyone will be able to take a small deduction for cash donations even if you don’t itemize. What does it all mean?

If you were planning to do a small gift at the end of this year, you haven’t made other donations, and you don’t itemize, you might want to wait and do it in January instead. That could qualify you for the new deduction (max $1,000 single/$2,000 married filing jointly).

On the other hand, if you do plan to itemize, you might want to make your contribution now and even consider making next year’s now as well. Here are some situations where “bunching” contributions into 2025 could make sense:

• You want to get contributions in before the “floor” goes into effect and not all the contribution will be deductible
• You’re in the highest tax bracket and want to get contributions in before the maximum deduction is only worth 35%

As always, consult your advisor and your tax professional before you make big tax decisions.

5. MATRIARCHS AND PATRIARCHS: TALK TO LOVED ONES ABOUT YOUR ESTATE PLAN

Most of us spend a lot of time with family during the holiday season, so what better opportunity to check in about your estate plan? Here’s a discussion you might never have had: What will happen to your digital legacy?

Talking about how someone can get access to your iPhone photos, recipes saved on your Google Drive or even your bitcoin wallet can be a much easier conversation to have than starting with the money stuff. But it can also open the door to a deeper estate planning discussion – one that you really need to have.

6. EVERYONE: MAKE OTHER YEAR-END TAX MOVES

Of course, every year there are some standard things you should consider to help make sure you’re being strategic with your taxes and avoiding penalties. Items that reduce your adjusted gross income (like pretax 401(k) or health savings account contributions, etc.) this year could even do double duty if you’re in the AGI range where the increased SALT deduction phases out ($500,000-$600,000).

CONSIDER TAX-LOSS HARVESTING

Selling underperforming investments to offset gains is a classic year-end move. You can use losses to offset capital gains and even up to $3,000 of ordinary income if losses exceed gains. Extra losses can be carried forward indefinitely. If you haven’t set up tax-loss harvesting with your advisor and you think it might be beneficial, reach out to them.

MAX OUT TAX-ADVANTAGED CONTRIBUTIONS

Still have room in your 401(k), IRA or HSA? Pretax contributions reduce taxable income and grow tax-deferred. If you’re age 60-63, don’t forget about the new, higher “super catch-up contributions” that started this year.

TAKE YOUR REQUIRED MINIMUM DISTRIBUTION

If you’re 73 or older, you must take your RMD by Dec. 31 (unless it’s your first one, which can be delayed to April 1). Miss it, and the penalty is a steep 25% of the amount you should have withdrawn (though it drops to 10% if corrected quickly).

CONSIDER A ROTH CONVERSION

Roth conversions are not the silver tax bullet they’re sometimes made out to be. But if they make sense for you, they could help you reduce future RMDs and leave more tax-free money to your heirs. Be careful: The amount you convert counts as income and could push you into a higher tax bracket, cause you to lose that new senior deduction or trigger Medicare surcharges. Your tax advisor can tell you if it makes sense for you.

MAKE QUALIFIED CHARITABLE DISTRIBUTIONS

If you’re 70 ½ or older, you can donate up to $108,000 directly from your IRA to a qualified charity in 2025. The QCD isn’t a deductible contribution, but it counts toward your RMD without being included in your taxable income.

Two ways to get more bang for your buck:

• The QCD qualification age is 70 ½ and is now decoupled from the age at which you have to start RMDs (which is now 73). That gives you an extra window where you can remove money from IRAs tax-free, lowering future RMDs.
• You can only make QCDs from IRAs. If you’re interested but have most of your money in employer plans like a 401(k), now might be the time to consider a rollover.

LET’S TACKLE YOUR LIST TOGETHER

It’s a lot to think about, but here’s the good news: You have a professional financial advisor ready to help you think through your options, strategize and make the right moves for you. That’s one of the best gifts you can give yourself.