Year-End Financial Planning Checklist: Smart Moves to Consider Before December 31st

As the year winds down and the holidays creep up (seriously, how is it already that time?), it’s a perfect moment to pause and take stock of your financial picture. A little proactive planning now can mean fewer surprises come tax time—and more peace of mind as you head into the new year.

Here’s a handy list of key strategies to consider before year-end to help maximize opportunities, minimize taxes, and set yourself up for success:

1. Review Your Budget Before the Holiday Spending Frenzy

The holidays are full of joy—and let’s be honest, expenses. Before you dive into gift-giving, travel plans, and festive gatherings, now is a great time to review your budget.

Decide what you have to spend, set clear limits, and stick with it. Overspending now can make it harder to stay on track with your bigger financial goals, like retirement contributions or building that emergency fund.

A little planning now means you can enjoy the season without the financial hangover in January. If you need help aligning your budget with your goals, we’re always here to guide you.

2. Charitable Gifting: Make an Impact & Lower Your Tax Bill

The season of giving is also a season for potential tax benefits. If you’re feeling philanthropic, charitable contributions made before December 31st can help reduce your taxable income.

PWP Tip: If you’re considering a larger gift but not sure exactly which charities to support yet, a Donor Advised Fund (DAF) can be a great solution. With a DAF, you can make a charitable contribution now, receive an immediate tax deduction, and decide on the specific charitable distributions over time. It’s a powerful tool for both intentional giving and smart tax planning.

We’re happy to help you explore if a DAF fits your goals.

3. 529 Plan Contributions: Give the Gift of Education

The holidays aren’t just about toys and gadgets—consider funding a 529 College Savings Plan for your kids, grandkids, or even yourself (yes, you can use a 529 for your own future education too!).

Many states offer tax deductions or credits for contributions made to their 529 plans, but to take advantage of those for this tax year, you’ll need to make contributions before year-end.

PWP Tip: If family members are asking what to get your little ones this holiday season, suggest a contribution to their 529 plan—it’s a gift that truly keeps on giving.

4. Roth IRA Conversions: It’s Not Too Late

If you’ve been considering converting some of your pre-tax retirement savings to a Roth IRA, you still have time before year-end. A Roth conversion allows you to pay taxes on the converted amount now in exchange for tax-free growth and tax-free withdrawals in retirement.

This can be a particularly appealing strategy in years when your income is lower than usual or if markets have dipped, as the tax bite on the conversion may be smaller.

It’s not a one-size-fits-all move—let us help you run the numbers.

5. Tax Loss Harvesting: Turn Market Volatility into a Tax Benefit

Market ups and downs are never fun, but there is a silver lining. If you have investments that are currently sitting at a loss, you may be able to sell them to offset capital gains elsewhere in your portfolio.

This strategy, known as tax loss harvesting, can help reduce your tax bill now and even create carry-forward losses to offset future gains. But remember, you’ll need to make these moves before December 31st to apply them to this tax year.

6. Review Required Minimum Distributions (RMDs)

If you’re age 73 or older, or you’ve inherited certain retirement accounts, don’t forget to take your Required Minimum Distributions (RMDs) before year-end to avoid costly penalties.

Not sure how much to take or where to pull from? That’s where our expertise comes in.

7. Maximize Retirement Contributions

There’s still time to make contributions to your 401(k) or other employer retirement plans. Increasing your contributions before the year wraps up can help lower your taxable income and boost your retirement savings.

If you’re self-employed, options like SEP IRAs or Solo 401(k)s may also be worth considering.

Final Thoughts: Partner with the Pros

End-of-year financial planning can feel overwhelming—but you don’t have to do it alone. At Pursuit Wealth Planning, we help clients navigate these opportunities with confidence, making sure no stone is left unturned as the year comes to a close.

Have questions or want help reviewing your year-end strategies? Let’s talk. Together, we’ll make sure you’re not only wrapping up this year wisely but also setting the stage for an even stronger financial future.

Dream. Plan. Achieve.