Your Year-End Checklist

By Angela Grannan on November 6, 2024

Wow! That was fast. Another tumultuous year has come and is almost gone. Hopefully, between now and December 31, we can enjoy the holidays with friends and family and relax a bit. 

But first, there are a few financial to-dos to check off your year-end list. Let’s start with items with a hard deadline:

Retirement and Healthcare:

*If you can, maximize your 401k contribution by December 31^st-Under 50 $23K, 50+ $30,500

*Make an IRA contribution by April 15^th, 2025-Under 50 $7000, 50+ $8000

*Consider a Roth conversion, which moves funds from your traditional IRA to a Roth IRA. Discuss this with your CPA and advisor to determine if this makes sense tax-wise for you in 2024. [1]

*If you have one, don’t forget to contribute to your Health Savings Account (HSA). The limit for 2024 is $4150 for self-only coverage and $8300 for family coverage. To contribute to an HSA, you must be enrolled in a high-deductible health plan.

*If you have a medical Flexible Spending Account (FSA), these accounts are typically use it or lose it, so go out and get those new contact lenses![2]

Year-end is also a good time to reflect on your savings and spending in 2024 and your expectations for 2025. Do you have any major life events to look forward to in 2025, like a wedding, a new baby, a new job, or retirement? Be honest with yourself when you think about your goals and anticipated expenditures for the new year. Review your risk tolerance and asset allocation with your advisor and make the portfolio adjustments to meet your needs.[3] 

As you review your financial year, it may be appropriate to consider charitable contributions and/or family gifting.  Review with your CPA and advisor the possibility of donating appreciated assets or contributing to a donor-advised fund. If you are 70.5 or older, you may want to consider a QCD (Qualified Charitable Distribution) that is distributed directly to a charity from your IRA. A charitable deduction is not allowed, but the distribution will not be included in your taxable income. The maximum QCD for 2024 is $105K. Finally, when it comes to gifting family members, gifts $18K and under are not subject to gift tax and don’t count toward your lifetime gift and estate tax limit.[4] 

Finally, take some time to review your debt, insurance, and beneficiaries. 

*Debt – Take a look at your credit cards and loans. Review the terms and determine whether they are serving your needs. Have you made progress in paying down debt in 2024? Create a doable plan for paying down more debt in 2025.

*Insurance – Review your existing policies and coverage. Do you still have the same needs for insurance and if you do, is the coverage sufficient? Is it time to consider Long Term Care insurance? Discuss these questions with your advisor.

*Beneficiaries – This is a great opportunity to get a handle on all of your accounts and insurance policies. Review the beneficiaries to make sure they are in place and up to date. If you have not reviewed your estate plan in several years, it may be time to schedule a meeting with your estate planning attorney to go over the details and determine whether changes need to be made.[5] 

If you have questions, please schedule some time to meet with your advisor. Enjoy these last few weeks of 2024! 

[1] 18 To-Dos for Your Year-End Financial Planning Checklist | Ellevest

[2] Year-End Financial Checklist | U.S. Bank

[3] Year-end Financial Checklist | Edward Jones

[4] 18 To-Dos for Your Year-End Financial Planning Checklist | Ellevest

[5] Year-end Financial Checklist | Edward Jones