4 money moves to make before the end of the year

• The end of the year is an ideal time to review your budget, emergency fund and debt repayment plans.
• Experts suggest preparing for tax season now by organizing receipts, checking withholdings and considering tax-loss harvesting.
• Reviewing and maximizing contributions to retirement accounts like a 401(k) or IRA can help secure your financial future.
• Financial advisors recommend setting new goals for 2026 and understanding how new legislation may impact your finances.

As Americans deck the halls and tackle gift lists, the holiday season also offers an opportune moment to reflect on personal finances. 

Economic uncertainty seemed to define 2025. Rising tariffs fueled volatility, a cooling job market challenged workers, and inflation stuck around. Nevertheless, an AI investment boom and high-income households’ strong spending powered growth in select sectors. For others, however, an affordability crisis continued to mount. 

If you’re looking to finish the year on track, experts’ year-end financial tips can help set the stage for a strong start to 2026.

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1. Take stock

The end of the year is often a good time to reflect on what went well in 2025 and what did not. 

Jack Howard, head of money wellness at Ally Financial, said she understands that some Americans are caught in a doom spiral, thinking the economy is “crazy,” inflation is high, and they’ll never retire.  

“You could have a different thought: 2025 was a challenging year for a lot of people. I did set goals, and I didn’t achieve them, but I’m really proud I set goals, and moving forward, I’m going to work toward them,” Howard said. 

She suggests reviewing your spending and, if needed, adjusting your budget to better align with your values.  

It’s also wise to review your emergency fund. Replenish the fund if you pulled from it this year, and consider increasing it if your expenses have risen. You’ll also want to check in on any debts. Ensure you know what’s owed and are comfortable with repayment plans. 

December is also an opportune time to review your estate plan, powers of attorney and insurance coverage.

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2. Prep for tax season

While Tax Day is still months away, preparation can start now. 

Ensure your withholdings are correct to avoid owing a large amount to the IRS. Track expenses and organize receipts for deductible purchases. If you plan to itemize, consider making charitable donations before Dec. 31, but there may be reasons to hold off on year-end giving, depending on your situation. 

Make the most of tax-advantaged accounts. Spend down any Flexible Spending Account funds before they expire and consider contributing to a 529 education savings plan or a similar alternative. 

If you have taxable investments, you may consider harvesting tax losses or selling down investments at a loss to offset capital gains taxes. Miklos Ringbauer, founder of the accounting and tax strategy firm MiklosCPA, said it is “a very big misconception” that the strategy is only for the wealthy. 

To ensure a smooth tax season, Ringbauer recommends maintaining records of all financial activities and consulting with a professional before making any major decisions. 

“You don’t need five times a year, but check in once every year, or once every couple of years, with a reputable accountant who you know and trust so they can give you the support, especially after there’s major tax legislation,” Ringbauer said.

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3. Review retirement investments

If you’ve got extra cash, the year’s end is also a good time to max contributions to retirement accounts. 

“I want you to put as much money into your 401(k) as possible, and your 59-and-a-half-year-old self will thank me,” said Judith Leahy, a senior wealth advisor at Citi Personal Wealth Management. 

In 2025, individuals can contribute up to $23,500 to their 401(k) plans. IRA contributions are capped at $7,000 for those under 50. Those aged 50 and over can contribute $8,000. 

If you have traditional retirement accounts, depending on your situation, Leahy said you may want to consider a Roth conversion or moving traditional pre-tax retirement savings to a Roth IRA. 

Those over 73 will also need to ensure they’ve withdrawn the required minimum distribution from their IRA, 401(k), and some other plans. Failure to do so could result in a 25% tax penalty on the amount not withdrawn. 

“Get that done, or you get the penalty,” Leahy said. “If you don’t need the money, make sure you’re doing a charitable distribution so that money can then go to the charity of your choice and you’re not paying taxes on it.” 

While you’re at it, ensure the beneficiaries on those accounts are up to date. 

4. Plan for 2026

Once you’re feeling confident about 2025, it’s time to prep for 2026. 

Set new financial goals and schedule regular check-ins to track progress. 

You may also take time to review how new legislation, like the One Big Beautiful Bill Act, will affect you. USA TODAY broke down the bill’s winners and losers. The changes are likely to help high-income earners, families with children, car buyers, those with overtime pay, and tipped workers. Those making less than $50,000, SNAP and Medicaid recipients, those with student loan debt and undocumented people stand to benefit less. 

Reach Rachel Barber at rbarber@usatoday.com and follow her on X @rachelbarber_