7 moves many people skip before year-end

Many people don't think about their finances until tax season arrives and by then, the window to act has already closed. Here are seven moves worth considering before December 31, along with a note on why each one matters for someone in your position.

1. Run a Year-End Tax Projection

Do not wait until April to find out what you owe. If you run a projection now, you still have time to make moves that reduce your bill, whether that means accelerating deductions, deferring income, or something else entirely. For high earners, this step alone can be worth thousands.

2. Max Out Your 401(k)

The 2026 employee contribution limit is $24,500, according to the IRS. If you are 50 or older, you can contribute an additional $8,000 for a total of $32,500. If you turn 60, 61, 62, or 63 this year, the SECURE 2.0 "super catch-up" rule bumps your additional contribution to $11,250, bringing your total potential contribution to $35,750. These limits reset on January 1, so any unused room is gone for good.

3. Revisit Your Charitable Giving Strategy

Writing a check to charity is straightforward, but it is rarely the most efficient approach. Donating appreciated investments directly, or routing gifts through a donor-advised fund, can stretch the same dollars further while reducing your taxable income. If you have concentrated gains in a position you were planning to trim anyway, this deserves a closer look.

4.  Think About Family Gifting

If reducing your taxable estate is part of your long-term plan, year-end is a natural time to revisit this. Starting the conversation early gives you room to structure it correctly rather than rushing a decision in late December. You can gift up to $19,000 per person without paying a tax or reporting a gift.

5. Look at Concentrated Stock Positions

If a single holding has grown to represent an outsize portion of your portfolio, say, 25 to 30 percent or more, that concentration is a risk worth addressing. Year-end can be a good time to evaluate options, particularly if there are other tax considerations already in play.

6. Check What Your Cash Is Earning

Rates have started to increase again. Your emergency fund should be safe and accessible. But it does not have to sit idle earning close to nothing. Take five minutes to confirm that your cash reserves are working as hard as they reasonably can without adding risk.

7. Review Your Beneficiary Designations

Marriage, divorce, a new child, or a death in the family. Any one of these is a reason to check. Beneficiary designations on retirement accounts and life insurance policies override your will, and outdated designations can create serious problems. This takes minutes to review and can save your family significant difficulty later.

Why It Matters

Year-end financial planning isn't about finding a dozen complicated strategies before December 31.

It's about taking a few minutes to look at taxes, retirement, investments, cash, giving, and your estate plan while you still have time to make changes.

Some opportunities disappear once the calendar turns to January.

A little planning before year-end can prevent surprises today and put you in a better position for the year ahead.

 - Steve Balch, CFP®

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