Six End-of-Year Financial Planning Tips

The holidays are in full swing—decorations are up, the kitchen smells amazing, and calendars are filling up with family and friend gatherings. While you’re soaking in the season, it’s also a great moment to give your finances a quick end-of-year tune-up. Here are six simple things you can do now to start the new year on solid financial footing:

Review Your Beneficiaries

When’s the last time you checked your beneficiary designations? Life moves fast, and so should your updates. Take a few minutes to review the beneficiaries listed on your retirement accounts (like your 401(k) or IRA) and any life insurance policies. It’s a quick task that can make a big difference.

Check Your Emergency Fund

Give your emergency savings a pulse check. Ideally, you should have 3–6 months of expenses set aside in a high-yield savings account. If you’ve dipped into that fund this year, now’s the time to make a plan to replenish it starting in January.

Make Charitable Donations

If you’ve been planning to give to a cause you care about, make sure to do it before December 31 to qualify for a potential tax deduction this year. Whether it’s a one-time gift or a recurring donation, every bit helps—and now’s the perfect time.

Contribute to a 529 Plan

Planning for future education expenses? Contributions to a 529 plan must be made by year-end if you want to snag a state income tax deduction (where applicable). It’s a great way to invest in a child’s future and receive a tax benefit.

Don’t Miss Your RMDs

If you’re 72 or older, be sure to take your Required Minimum Distribution (RMD) from your pre-tax retirement accounts. Missing your RMD could trigger a steep penalty—this one’s too important to overlook.

Use Up Your FSA Funds

Still have money left in your Flexible Spending Account (FSA)? Check the deadline for spending it—many plans require you to use the funds by the end of the year or risk losing them. Eligible expenses can include everything from prescriptions to dependent care, so don’t leave that money on the table.

As the year winds down, take a moment to ensure your finances are in order for the year ahead. A few small steps now can help you feel more organized, confident, and ready to hit the ground running in January.