27 Oct 2025 7 Smart (and Slightly Spooky) Year-End Money Moves
Before 2025 slips into the shadows, take a few minutes to shine a flashlight on your finances. These spooky yet sensible money moves can help you wrap up the year wisely and prepare for what lurks around the corner in 2026.
1. Exorcise Unchecked Contributions in Your Workplace Retirement Plan
Before the clock strikes midnight on December 31, make sure your 401(k), 403(b), or other employer retirement plan contributions haven’t wandered off course.
For 2025, you can contribute up to $23,500 if you’re under 50, and up to $31,000 if you’re 50 or older (including the $7,500 catch-up). And for those in the haunted zone of ages 60 to 63, the SECURE Act 2.0 “Super Catch-Up” lets you stash away even more—up to 150% of the regular catch-up amount. For 2025, that means you could contribute as much as $34,750 total ($23,500 + $11,250) if your plan allows it.
Looking ahead to 2026: Employees aged 50 and older who earn more than $145,000 (indexed for inflation) will be required to make their 401(k) catch-up contributions as Roth contributions—meaning with after-tax dollars. Those below that threshold can still choose between traditional pre-tax or Roth catch-up contributions. See Ryan’s recent Friday Brief for details.
2. Don’t Let Required Minimum Distributions Come Back to Haunt You
If you’re 73 or older, be sure you’ve taken your Required Minimum Distribution (RMD) from traditional IRAs and employer retirement plans before year-end. The IRS penalties for missed distributions can still send chills down your spine—25% (or 10% if corrected quickly).
And if you’ve inherited an IRA recently, beware the 10-year rule: many non-spouse beneficiaries must fully distribute inherited accounts within a decade of the original owner’s death. If that applies to you, work with your advisor or CPA to plan distributions strategically and avoid a frightening tax surprise later.
3. Give Generously—And Keep the IRS Gremlins Away
Charitable giving can be one of the most rewarding—and tax-efficient—ways to spread goodwill. A few thoughtful strategies can make your generosity go further.
Donate Appreciated Stock: Instead of cash, consider giving long-held stocks with big unrealized gains. You’ll avoid capital gains tax and receive a deduction for the full market value—a true treat for both you and your favorite cause.
Qualified Charitable Distributions (QCDs): If you’re 70½ or older, you can direct up to $105,000 (new limit for 2025) from your IRA to charity—tax-free. It even counts toward your RMD. It’s a smart way to turn a required withdrawal into meaningful impact.
4. Banish Losses (or Summon Gains) Before Year-End
Tax-loss harvesting is like clearing out financial cobwebs. Selling investments in taxable accounts that are down in value can offset capital gains or up to $3,000 of ordinary income.
Alternatively, if you’re in a lower tax bracket, harvesting gains instead could let you realize profits at a 0% capital gains rate. Either way, check with your advisor or CPA to avoid any “wash sale” tricks that could undo your efforts.
5. Feed Your IRAs Before the Clock Strikes Midnight
For 2025, the IRA contribution limit is $7,500 if you’re under 50, and $8,500 if you’re 50 or older. Contributions to a Roth IRA grow tax-free, while traditional IRA contributions may reduce this year’s tax bill.
If you’re self-employed, a SEP IRA remains one of the most potent potions for tax-deferred saving—allowing contributions of up to 25% of compensation or $69,000 for 2025.
And remember, unlike ghosts, IRA contributions don’t vanish at year-end—you have until your 2025 tax filing deadline to make them.
6. Don’t Let Your FSA Funds Disappear Into the Night
Flexible Spending Accounts (FSAs) can be tricky creatures—if you don’t use your balance, it may vanish into thin air. Check your employer’s carryover or grace-period rules and spend remaining funds on eligible medical, dental, or vision expenses before it’s too late.
7. Treat Your Health Savings Account (HSA) Like the Treasure It Is
If you have a high-deductible health plan (HDHP), an HSA is one of the most powerful, triple-tax-advantaged tools available. Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified expenses are also tax-free.
For 2025, the contribution limits are $4,300 for individuals and $8,550 for families, with a $1,000 catch-up for those 55 or older. Unused funds roll over each year—no vanishing act here—making an HSA a strong ally in your long-term financial plan.
Bonus Tip: Many HSAs allow you to invest your balance in mutual funds, ETFs, or other securities once you reach a certain threshold. This lets your HSA grow like a retirement account while still offering tax-free access for qualified medical expenses.
Final Thoughts
After you’ve visited the haunted houses and sorted your candy into neat little piles, take a moment to tidy up your financial house. A few smart moves now can keep tax goblins at bay and position you for a more confident 2026.
If you’d like help deciding which of these year-end strategies could cast the biggest positive spell on your financial plan, we’d love to hear from you.
