Financial Planning Questions You Need To Ask Before Year-End

As the year draws to a close, it’s the perfect moment to take charge of your financial journey. We understand that managing finances can be daunting, but making proactive decisions now can truly empower your financial future. Let’s dive into four essential strategies you can consider before December 31st.

Should I Explore Roth IRA Conversions?

 

Roth conversions might be a savvy move, particularly if you find yourself in a lower tax bracket this year. This involves converting a traditional IRA to a Roth IRA, allowing you to pay taxes now for potentially tax-free withdrawals later. Remember, this isn't a one-size-fits-all strategy and should be assessed annually based on individual circumstances.

Am I Maximizing Your Retirement Contributions?

 

Utilizing the 2025 retirement contribution limits can not only help reduce your taxable income but also bolster your future wealth. Currently, the limits are $23,500 for 401(k)s (plus a $7,500 catch-up for those over 50) and $7,000 for traditional/Roth IRAs (plus a $1,000 catch-up for those over 50). Acting promptly ensures you are better positioned for retirement.

How Can Charitable Giving Fit Into My Strategy?

 

Charitable giving offers a meaningful way to give back, with strategies such as donation bunching or using a donor-advised fund proving beneficial. If you're over 70½, consider a Qualified Charitable Distribution (QCD) from your IRA, which can satisfy your required minimum distribution once you turn 73.

Is It Time to Fund My HSA?

 

Health Savings Accounts (HSAs) provide triple tax benefits and are a powerful financial tool. For 2025, contribution limits stand at $4,300 for individuals and $8,550 for families. HSAs can serve both short-term and long-term financial planning needs, so it's wise to maximize their potential.

Taking time now to review and act on these strategies can significantly enhance your financial outlook for the coming year. Not every approach will suit everyone, so consulting with a financial professional or CPA is a sound step. Ready to make these changes? Contact us today to schedule your financial check-in.