Financial To-Dos to Finish 2025 Strong and Start 2026 Stronger

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As 2025 winds down, many households find themselves pulled in many directions. Holiday gatherings, year-end work obligations and family commitments all compete for attention.

In the midst of that chaos, financial to-dos often could slip to the bottom of the list.

But the final stretch of the year can be one of the most meaningful windows for anyone looking to reset, refocus and shore up their finances before 2026 begins.

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A quick year-end checkup could help reveal missed opportunities, prevent avoidable mistakes and present new planning options.

According to Fidelity's 2025 Financial Resolutions Study, 80% of respondents say having a plan and structure in place helps them deal with surprise events.

And for those who let their finances take a back seat in 2025, it may not be too late to finish the year strong.

About Adviser Intel

The author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

Here are a few areas to focus on to help have a strong finish to 2025 and to start 2026 on solid footing.

1. Maximize your retirement contributions

Vanguard's 2025 How America Saves report found that only 14% of workers maxed out their 401(k) contributions in 2024. Year-end can be a perfect moment to see whether contributions can be increased to maximize tax-advantaged savings.

For 2025, workers can contribute up to $23,500 to 401(k) or 403(b) plans, plus there's a $7,500 catch-up for those 50 or older.

For 2026, the limits are $24,500 for employee contributions and an $8,000 catch-up for workers age 50-plus. There's also a "super catch-up" provision for 2025 that enables those who are 60 to 63 to contribute $11,250 extra, reverting to $7,500 at age 64.

A Roth conversion may also be worth exploring, especially with the recent extension of the Tax Cuts and Jobs Act (TCJA) provisions under the One Big Beautiful Bill Act (OBBBA).

Conversions tend to be most attractive in the years after retirement before required minimum distributions (RMDs) begin when taxable income may be lower.

This enables you to convert funds at potentially lower income tax rates, before you are required to take RMDs. Roth IRAs are not subject to RMDs, grow tax-deferred and withdrawals are tax-free.

2. Tap into qualified charitable distributions (QCDs)

For charitably minded individuals age 70½ or older, year-end presents another opportunity in the form of qualified charitable distributions (QCDs). A QCD is a distribution from an IRA sent directly to a qualified charity.

So long as the custodian sends the check directly to the organization, the distribution is not considered taxable income and may potentially reduce Medicare premiums. Individuals can donate up to $108,000 in 2025 ($216,000 for married couples filing jointly).

QCDs can also count toward satisfying RMDs for the year, resulting in a "win-win" for clients and their favorite causes.

3. Use remaining FSA and HSA dollars wisely

Flexible spending accounts (FSAs) operate under the "use it or lose it" rule, meaning unused funds often expire at year-end unless your employer provides a grace period. In short, now could be a good time to schedule medical appointments, purchase eligible supplies or get new glasses.

Health savings accounts (HSAs) remain one of the most powerful savings tools available, offering triple tax advantages: deductible contributions, tax-free growth and tax-free withdrawals for qualified health care expenses.

For 2025, individuals can contribute $4,300 and families $8,550, and those 55-plus get a $1,000 catch-up.

Given that Fidelity estimates* a 65-year-old single person retiring in 2025 will need an average of $172,500 for lifetime medical costs in retirement, regularly funding an HSA can be an important way to build long-term health care reserves.

It's important to note that you must be covered by a qualified high-deductible health plan (HDHP) to contribute to a HSA.

Last but not least, here are some simple but crucial housekeeping items — review your Social Security statements and credit reports. These are documents many people assume contain accurate information.

Social Security statements occasionally contain errors in wage histories, and those mistakes can lower your future benefits if left uncorrected.

Because discrepancies are far easier to fix early, individuals should log in annually at ssa.gov to confirm that their reported earnings match their actual income.

Credit reports deserve similar attention. Fraud and identity theft have surged, with the Federal Trade Commission (FTC) logging more than 1.1 million identity theft reports in 2024.

Reviewing reports from Equifax, Experian and TransUnion, all of which provide free annual access, can help reveal unfamiliar accounts or suspicious activity. If there are inaccuracies, each bureau offers dispute channels to address them quickly.

Whether or not something looks off, freezing credit remains one of the most effective ways to help protect against new fraudulent accounts or the continued misuse of compromised ones.

These practical defensive measures can help prevent further financial headaches that may otherwise take months or years to unravel.

Make it routine

Year-end planning shouldn't feel like a frantic scramble or a need-to-do stressor. Consider making it part of an annual rhythm, an intentional pause to ensure that your financial life still aligns with your needs, your values and the realities of changing tax laws.

For those who missed opportunities in 2025, this checklist can provide a road map for 2026. Successful financial planning isn't necessarily about perfection, but consistency. Small, deliberate actions taken regularly can compound into significant results over time.

At the outset of 2026, commit to making these reviews a standard part of your year-end calendar, because your financial security depends largely on proactive habits established today.

And if you feel overwhelmed, partnering with a trusted adviser can help you stay on track all year long.

* Estimate based on the person retiring with life expectancies that align with MP-2020 as of 2022. Actual assets needed may be more or less. Estimate is net of taxes.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Leila is Regional President, Senior Managing Director at MAI Capital Management, based in Charlotte, N.C. She has over 30 years of experience in financial services working extensively with high-net-worth individuals and families. Leila joined MAI after the acquisition of Queens Oak Advisors, where she served as the Managing Partner and Director of Client Service.