Your Year-End Financial Checklist

By River Birch Wealth Management

As the year winds down, most of us start thinking about family gatherings, holidays, and a little time to rest. But it’s also one of the best times to pause and make sure your finances are ready for the new year.

A few simple steps now can bring confidence and help you start January feeling organized, confident, and in control. Here’s an easy-to-follow year-end financial checklist.

1. Review Your Spending and Savings

Start by looking at your year as a whole. How did your spending line up with your goals? Did you save as much as you planned? A quick glance at your bank statements can help you see where your money went. This is a good time to:

• Adjust your budget for next year.

• Look for areas where you can save more.

• Celebrate progress, not perfection.

Remember, financial planning is a journey, not a scorecard. Every step forward is a win.

2. Max Out Retirement Contributions

If you can, take advantage of tax-deferred savings before December 31. Contributing more to your 401(k) or IRA can help reduce your taxable income and strengthen your retirement plan.

For 2025, you can contribute up to:

• $23,000 to a 401(k) (plus an extra $7,500 if you’re 50 or older).

• $7,000 to an IRA (plus an extra $1,000 if you’re 50 or older).

Even if you can’t reach the max, increasing contributions by a small amount can make a big impact over time.

3. Take Your Required Minimum Distribution (RMD)

If you’re 73 or older, you may need to take your RMD from retirement accounts before year-end to avoid penalties.

If you don’t need the funds for living expenses, consider using your RMD for charitable giving.  It can satisfy the requirement and reduce your taxable income at the same time.

4. Review Investments and Rebalance If Needed

Markets move throughout the year, which can shift your investment mix. Review your portfolio to make sure your risk level still matches your goals.

This doesn’t mean making big changes or trying to time the market. It’s simply about making sure your investments stay balanced; steady, diversified, and aligned with your long-term plan.

5. Use Flexible Spending Account (FSA) Funds

If you have a healthcare or dependent care FSA, check the balance and use any remaining funds before they expire. Many plans require you to spend the money by the end of the year or risk losing it.

You can use FSA funds for eligible medical expenses, prescriptions, dental care, and even vision-related costs.

6. Check Your Charitable Giving Plans

November and December are often the biggest giving months of the year. Review your donations and decide if you’d like to make additional gifts before year-end.

A few ways to give wisely:

• Donate appreciated assets instead of cash to reduce capital gains taxes.

• Give directly from your IRA if you’re taking RMDs.

• Use a donor-advised fund for flexibility and planning ahead.

Thoughtful giving not only helps others; it brings purpose and meaning to your financial plan.

7. Review Your Insurance Coverage

Life changes fast! Think new homes, new jobs, new family members. Check your life, home, auto, and disability insurance to make sure your coverage still fits your needs.

This is also a good time to confirm your beneficiary designations are up to date. It’s a simple step that can prevent complications down the road.

8. Plan for Taxes Early

Don’t wait until April to think about taxes. Review your income, deductions, and potential credits now. If you expect a larger tax bill, planning ahead can help you prepare and reduce stress later.

You can also talk with your advisor about strategies like tax-loss harvesting to offset gains or boost your savings.

9. Review Your Financial Goals for Next Year

Once you’ve handled the numbers, take a step back and think about the bigger picture.

• What went well this year?

• What do you want to improve next year?

• What would financial freedom look like for you and your family?

Your goals may change as life changes and that’s normal. What matters is having a plan that moves with you.

10. Celebrate Progress

It’s easy to focus on what’s next, but don’t forget to celebrate what you’ve accomplished this year. Whether you paid off a loan, increased savings, or simply stuck to your plan, every step forward is worth recognizing.

A Steady Finish and a Confident Start

At River Birch, we believe financial planning is about peace of mindconfidence and a plan forward. A few thoughtful steps now can help you finish strong and start the new year with clarity and confidence.

If you’d like help reviewing your year-end plan or setting goals for the year ahead, we’re always just a phone call away.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.