The December Financial Checklist: 5 Things To Cross Off Before The New Year

December isn’t just about wrapping up the year, it’s also your last chance to lock in financial decisions that can reduce taxes, strengthen savings, and set you up for a more confident start to 2026.

Luckily, with only a few weeks left of the year, I’m not recommending you overhaul everything and start fresh. However, I do want to recommend a few targeted, high-impact moves that can go a long way.

Here are five practical steps worth tackling before December 31st (and tips how to make each one simple):

1. Maximize your retirement contributions (or at least increase them).

Increasing retirement contributions before year-end is one of the easiest ways to lower your tax bill and build future confidence in your financial picture.

Where to look:

• 401(k) / 403(b)

• Traditional or Roth IRA*

• Catch-up contributions if you’re 50+

Example:
If you’re contributing 10% to your 401(k), bumping it to 12–15% for the last few pay periods of the year can meaningfully increase your retirement savings without dramatically impacting cash flow.

Pro tip: Many payroll portals allow you to change your contribution rate yourself; it only takes a few minutes of your time.

Note: IRA contributions can technically be made until tax day, but planning before year-end keeps your tax strategy clean and avoids last-minute surprises.

2. Review investment gains and losses — don’t leave taxes to chance.

Year-end is the ideal time to review investment performance well before gains are realized through distributions or rebalancing.

Ask you’re financial advisor to look at:

• Realized gains and losses

• Tax-efficient opportunities to rebalance

• Whether your portfolio drifted from your risk targets this year

Example:
If you have $15,000 in gains and $9,000 in losses, you may be able to intentionally harvest the losses to offset most of the gains, thus lowering your taxable income.

Pro tip: Avoid repurchasing the same investment within 30 days or it may trigger the IRS wash-sale rule.

3. Use FSA funds before they disappear.

If you have a Flexible Spending Account (FSA), unused funds may vanish on December 31st unless your plan offers a rollover or grace period. So many people lose money simply because they forget the balance exists! Don’t let this happen to you. Schedule some last-minute, year-end appointments for yourself or your family to tax advantage of whatever you have left.

Eligible expenses may include:

• Glasses or contacts

• Dental treatment

• Mental health therapy

• Chiropractor visits

• Sunscreen, first-aid items, and many over-the-counter products

Action step:
Most FSA providers have an app or a good website where you can log in and check your balance. If you have funds remaining, schedule appointments now before calendars fill up.

4. Review beneficiaries and key protections (10 minutes goes a long way).

Beneficiaries are not automatically updated when life changes… and unfortunately, that’s where costly mistakes happen.

Where to check:

• Retirement accounts

• Life insurance policies

• Brokerage accounts

• Wills and trusts

• Powers of attorney

Example:
We see cases every year where an ex-spouse or deceased relative is still listed as a beneficiary because no one realized beneficiaries don’t update automatically.

Pro tip:
Treat this like checking smoke detectors — quick, preventative, and incredibly important.

5. Make charitable giving intentional — and tax-efficient.

If giving is part of your year-end rhythm, you can often amplify impact while lowering taxes.

Options to consider:

• Donate appreciated securities instead of cash

• Use a donor-advised fund to bundle multiple years of donations

• If you’re 70½+, consider Qualified Charitable Distributions (QCDs)

Example:
If you planned to donate $5,000 in cash, donating $5,000 of appreciated stock may allow you to avoid capital gains tax and take the charitable deduction.

Pro tip:
If you donate to several nonprofits each year, a donor-advised fund can simplify recordkeeping and allow you to donate strategically, instead of transaction by transaction.

A stronger start to 2026 begins now

You don’t need to tackle everything on this list; just start with the item that feels most relevant or beneficial for your family. Even one or two of these steps can potentially help:

• Reduce your taxes

• Strengthen your family’s financial foundation

• Improve long-term investing outcomes

If you’d like help identifying which year-end moves make the most sense for your situation — or if you want someone to handle the heavy lifting — I’m here to help. Feel free to schedule a complimentary financial consultation with me today.