Amid the rush of year-end activities, these final weeks are an ideal time to take an inventory of your financial picture. Beyond the immediate tax and deadline-driven tasks, this is also a chance to take intentional steps that strengthen your long-term plan. To help you finish the year with clarity and confidence, here are key financial actions to review before December 31.

Review RMDs and Charitable Giving Options

If you’re age 73 or older (or have inherited certain retirement accounts), the IRS requires you to take a Required Minimum Distribution (RMD) from your retirement accounts each year. Missing the December 31 deadline can result in costly penalties. Each year, review your accounts to confirm your required amount has been distributed.

If you don’t need the RMD distribution for spending, consider using the funds for charitable giving. Those age 70½ or older can make a Qualified Charitable Distribution (QCD) directly from an IRA — allowing you to donate up to $108,000 (indexed for inflation) to a qualified charity. A QCD can satisfy all or part of your RMD while excluding the amount from taxable income, creating both a meaningful and tax-efficient gift.

Spend Down Flexible Spending Accounts (FSAs)

If you participate in a health care or dependent care FSA, now is the time to check your balance. Unlike Health Savings Accounts (HSAs), FSAs typically have a ‘use it or lose it’ rule, though some plans allow limited rollovers or short grace periods.

Review eligible expenses you can submit for reimbursement before year-end and use this opportunity to review your contributions and plan for next year.

Review Your Retirement Contributions

Review your contributions to 401(k)s and IRAs. If you can afford to contribute more, increasing your savings before December 31 can reduce your taxable income and help you stay on track toward your retirement goals.

Your planner can help you prioritize where additional contributions will have the greatest impact — whether it’s maximizing an employer match, funding a Roth IRA, or balancing pre-tax and after-tax savings to align with your future income needs.

Check Your Withholdings and Estimated Tax Payments

Year-end is also the time to confirm your withholdings and estimated tax payments will cover what you’ll owe. If your income changed significantly this year whether from bonuses, investment gains, or retirement distributions, a quick review now can help you avoid surprises in April. Your financial planner can collaborate with your tax professional to estimate your year-end tax position, recommend adjustments to withholdings, and plan ahead for next year’s cash flow and tax strategy. This proactive step can help you keep more of what you earn and reduce tax-time stress.

Consider Tax-Loss Harvesting

If you have non-retirement investments with a loss, tax-loss harvesting can turn those losses into potential tax savings by offsetting capital gains. However, it’s important to navigate this strategy carefully — especially with rules around ‘wash sales’ that can negate your tax benefit if not done properly. Your financial planner can help determine whether this strategy fits within your overall investment and tax strategy and aligns with your long-term asset allocation and goals. (You can also read our article on tax-loss harvesting for a deeper dive into how this works.)

Reflect and Reset for the Year Ahead

Finally, take some time to look at your broader financial picture, not just what needs to be done by December 31. Your financial plan is always evolving based on your life transitions and goals. November and December are a great time to think about what’s changed in the last year and what might need adjustments to stay aligned with your priorities.

Year-end planning isn’t just about checking boxes – it’s about taking deliberate steps to set yourself up for the year ahead. Our financial planners are here to help you connect all the moving parts, from retirement distributions and tax strategies to charitable giving and long-term goals.

For more planning insights, register to attend our last Ripple Event of the year – Tax Updates 2025-26: Insights to Help You Plan on November 18 at 4:30 p.m. Heidi Johnson Bixby, CFP® and Ralph Doggett, CFP®, EA of Integrated Tax Services will break down the most relevant tax changes from H.R. 1, formally signed into law on July 4, 2025. They’ll take a quick run through of updates to deductions and credits and offer financial planning insights you can use. Sign up here.