Year-End Financial Checklist: Three Smart Moves Before December 31
The end of the year is a natural checkpoint for elements of your financial plan. You don’t need a full overhaul every December, but you do want to make sure a few key items aren’t slipping through the cracks. Think of this as a focused tune-up so next year starts with purpose.
Here are three areas worth a thoughtful look before December 31:
1. Confirm Your RMDs
Required Minimum Distributions (RMDs) are mandatory withdrawals from most pre-tax retirement accounts; Roth IRAs are exempt during your lifetime.
Under current law, birth year drives the RMD start age:
- If you were born before July 1, 1949, your RMD age is 70½.
- If you were born July 1, 1949 – December 31, 1950, your RMD age is 72.
- If you were born January 1, 1951 – December 31, 1959, your RMD age is 73.
- If you were born January 1, 1960 or later, your RMD age is 75.
Your first RMD can be delayed until April 1 of the following year; every RMD after that is due by December 31. Inherited accounts follow different schedules and rules for spouses and non-spouses, so it’s important to be sure you’re following the set of rules that apply to your specific situation. If you already work with us, no need to worry — we’ve got you covered on getting these processed in a timely manner.
2. Tighten Up Retirement Contributions
If you’re still working, confirm you’re maximizing your contribution limits.
For 2025:
- You can defer up to $23,500 into a 401(k), 403(b), or similar plan through salary deferrals, plus an additional catch-up amount if you’re age 50 or older (subject to plan rules).
- IRA and Roth IRA contribution limits are $7,000 if you’re under 50 and $8,000 if you’re 50 or above.
Workplace plan contributions generally must go in through payroll by December 31. IRA and Roth IRA dollars can typically be added up to the tax filing deadline for that year.
3. Review Beneficiaries and Key Documents
Finally, make sure your paperwork matches your wishes. Confirm primary and contingent beneficiaries on IRAs, 401(k)s, annuities, and life insurance. Review your will, financial and medical powers of attorney, healthcare directives, and any “Transfer on Death” (TOD) or “Payable on Death” (POD) designations so they align with your broader estate plan.
Taken together, these year-end steps are less about doing everything and more about knowing that the big levers are being handled: required distributions are on schedule, contributions are intentional, and your paperwork reflects the people and causes that matter most to you.