7 Smart Money Moves to Make before Year-End
The final weeks of the year are more than just holiday prep and family gatherings.
They’re also your last chance to make financial moves before year-end that could boost your retirement savings, lower your tax bill, and set you up for a stronger 2026.
Whether you’re trying to catch up, get organized, or make the most of your 401(k), there’s still time to take action.
But don’t wait too long…many deadlines hit on December 31.
Here are 7 smart money moves to consider before year-end, starting with one of the most impactful:
#1 Review Your 401(k) Contributions
If you haven’t reviewed your 401(k) contributions in a while, we feel now’s the time.
For 2025, you can defer up to $23,500 into your 401(k). If you’re age 50 or older, you’re eligible to contribute an extra $7,500 in catch-up contributions, bringing your total to $31,000.
But here’s where it can get even better…
Thanks to the SECURE Act 2.0, if you’re between the ages of 60 and 63, you now qualify for what many are calling a super catch-up contribution. For 2025, that amount is $11,250, raising your total deferral limit to $34,750.
And that’s just your personal contribution.
When you factor in the defined contribution limit, which includes your employer’s match, profit sharing, and other deposits, the total can be even higher.
Even if you can’t max out, increasing your contributions by just 1-2% before December 31 can make a big difference over time, especially when you factor in employer matching and compound growth.
This is also a great opportunity to double-check that you’re getting your full employer match. That’s free money, and missing it is like walking away from a bonus.
If your income or financial situation has changed this year, adjusting your contribution rate before year-end can help you align your retirement strategy with your current goals.
#2 Review Your HSA Contributions for the Year
If you’re enrolled in a high-deductible health plan, a Health Savings Account (HSA) is one of the most powerful tools you can use to boost your long-term financial health…and it deserves a spot on your year-end checklist.
Why? Because HSAs offer a triple tax advantage:
- Contributions are tax-deductible
- Growth is tax-free
- Withdrawals for qualified medical expenses are also tax-free
For 2025, you can contribute up to $4,300 if you have self-only coverage, or $8,550 if you have family coverage. Those 55 and older who are not enrolled in Medicare can contribute an additional $1,000 as a catch-up contribution.¹
You have until the April 2026 tax filing deadline to make contributions for the 2025 tax year.
However, reviewing your current HSA status now can help you take advantage of maximizing your contributions and lowering your taxable income before year-end.
Even better? HSA funds never expire.
Unlike Flexible Spending Accounts (FSAs), any unused money rolls over year after year, making it a powerful retirement planning tool.
According to a recent analysis by the Employee Benefit Research Institute, a saver who maxes out their HSA and invests the funds over decades could potentially accumulate over $1 million by retirement.²
Despite all these benefits, about one in three eligible adults still don’t have an HSA, and many who do haven’t contributed to it in over a year.³
Don’t leave that opportunity on the table.
If you are eligible for an HSA, a few smart moves now can help you cover future healthcare costs and stretch your retirement dollars even further.
#3 Rebalance Your 401(k) Portfolio
When the market moves, your 401(k) moves with it…sometimes more than you realize.
If you haven’t rebalanced your portfolio recently, there’s a good chance your investments no longer match your intended strategy.
And the longer you wait, the more off-track your allocations can become – potentially exposing you to more risk than you’re comfortable with.
Here’s how it typically works:
Let’s say you started the year with a 60/40 split between stocks and bonds.
If stocks performed well, that could have ballooned to 75/25 without you even realizing it, leaving you potentially vulnerable in the next downturn.
Rebalancing is the process of resetting your portfolio back to its original target allocation.
It ensures your investments remain aligned with your risk tolerance, time horizon, and overall retirement goals.
We believe this isn’t about guessing where the market is headed. It’s about staying disciplined and protecting your money.
It’s also different from reallocating, which is when you change your investment strategy altogether. Rebalancing simply keeps your current strategy in check — regardless of what the market is doing.
At 401(k) Maneuver, we’ve seen how failing to rebalance can lead to missed opportunities during good markets and greater losses during bad ones.
On the flip side, regular rebalancing can help reduce volatility and improve long-term performance.
Before the year ends, take a look at your current portfolio and compare it to your original allocation.
If things have drifted, it may be time to rebalance.
If you’re not sure where to begin or how to do it correctly, don’t guess. Seek professional help.
#4 Check for Old or Forgotten 401(k)s
If you’ve ever changed jobs, there’s a good chance you left a 401(k) behind…and possibly forgot about it.
It happens more than you think.
Old accounts often sit unmanaged for years, racking up unnecessary fees and missing out on important rebalancing, updates to risk tolerance, or market opportunities.
And here’s the real kicker: Your money could be underperforming without you even knowing it.
Year-end may be the perfect time to take inventory.
If you’ve had more than one employer, check with your old HR departments or you can use tools like the Department of Labor’s Abandoned Plan Search to locate accounts.
Once you’ve found them, you have options:
- Roll it into your current employer’s plan (if allowed).
- Roll it into an IRA to consolidate and expand your investment choices,
- Leave it where it is. We advise against this option unless you qualify for the 55 and Separated from Service Rule).
- Cash it out. This is usually a costly option we advise against because you will face penalties before age 59½ and also pay taxes for cashing out.
Consolidating your accounts can simplify your financial life, may reduce fees, and may help you better manage your investment strategy across the board.
#5 Tackle Tax Planning before December 31
Year-end isn’t just about wrapping up your budget…it’s also your last chance to make some smart money moves before year-end that could reduce your tax burden and increase your savings.
A little planning now can help lower your taxable income, avoid penalties, and make sure you’re not leaving any tax-advantaged opportunities on the table.
Here are a few strategies to consider:
- Max out 401(k), IRA, and HSA contributions
- Consider a Roth IRA conversion
- Use tax-loss harvesting to offset capital gains
- Make charitable donations or qualified charitable distributions (QCDs)
We recommend you speak with your CPA or tax professional before the end of the year to see what strategies you should implement.
#6 Revisit Your Financial Goals and Emergency Fund
We feel year-end is the perfect time to pause and make sure your financial goals still align with where you are in life and where you’re heading.
Life changes fast.
Maybe your income went up, your expenses shifted, or retirement suddenly feels a lot closer than it did a year ago.
That’s why it can be so important to revisit your short- and long-term goals at least once a year and make sure your plan still fits.
Ask yourself:
- Are your 401(k) contributions still on track with your retirement timeline?
- Does your current investment strategy match your risk tolerance and age?
- Do you need to increase or adjust your savings targets for the new year?
This is normally a good time to check in on your emergency fund.
Most professionals recommend having at least 3 to 6 months’ worth of expenses set aside in a liquid, accessible account – more if you’re nearing retirement or concerned about job security.
Having a strong cash buffer can help to protect your long-term investments from short-term disruptions.
Reassessing your goals and cash reserves before the new year puts you back in control and helps you start 2026 with a solid foundation.
#7 Get Professional Help Managing Your 401(k)
With professionally managed 401(k) accounts, your investments are overseen by a real person or team – not an algorithm.
Personalization occurs using the investment options that are offered, and a personalized strategy – tailored to your unique situation and risk tolerance – is designed using the full menu of investment options in your 401(k) plan.
When you have professionals personally managing your 401(k), like we do at 401(k) Maneuver, the focus is on the outcome, not a one-size-fits-all algorithm based on your retirement date.
That’s why looking for 401(k) account management done by real people can be so important.
At 401(k) Maneuver, we are a fiduciary, which means we are obligated to act in your best interest to improve your account performance. You aren’t merely a number in a computer program.
We provide professional account management designed to help you grow and protect your 401(k).
Our goal is to increase your account performance over time, manage downside risk to minimize losses, and reduce fees that may harm your account performance.
Our done-for-you virtual service lets you keep your 401(k) right where it is, while we review and rebalance your account based on your risk tolerance and current market conditions.
Have questions or concerns about your 401(k) performance? Book a complimentary 15-minute 401(k) strategy session with one of our advisors.
Sources:
- https://www.fidelity.com/learning-center/smart-money/hsa-contribution-limits
- https://www.ebri.org/content/you-can-save–1-million-in-your-health-savings-account-(hsa)
- https://pmc.ncbi.nlm.nih.gov/articles/PMC7368175/
