Smart Year-End Tax & Financial Moves to Make Before December 31

Renee Cohen | Nov 25 2025 07:06
If you’re a high earner, the most impactful year-end financial moves you can make before December 31 include maxing your retirement accounts, using investment losses to offset gains, checking your...
If you’re a high earner, the most impactful year-end financial moves you can make before December 31 include maxing your retirement accounts, using investment losses to offset gains, checking your withholdings (especially after bonuses or equity comp), making strategic charitable gifts, reviewing business deductions, managing holiday cash flow intentionally, and updating insurance, beneficiaries, and estate planning documents.
 
These six small but powerful steps can lower your tax bill and help you roll into the new year feeling organized and in control.
 

The Energy Shift of Year-End

It feels like the moment November hits, we all snap straight into holiday mode.
The calendars fill, the to-do lists double, and suddenly we’re juggling travel plans, work deadlines, family events, and the hundred tiny tasks that come with the season.
 
And while it’s a fun, full time of year, it’s also the moment when most people stop paying attention to their money — right when it actually matters most.
 
Because a few smart year-end decisions made in November or December? They can set the tone for your entire financial year ahead.
 
This is why I always treat these last two months as a reset - as a chance to wrap up the year on purpose and walk into the new one with fewer questions and way more clarity.
 
Prefer to watch instead of read?
I recorded a 27-minute breakdown (18 minutes on 1.5x) walking you through the biggest money moves to make before December 31. 
 
 
Here’s your year-end checklist to set up a wealthy, intentional new year.
 

1. Max Out What Still Counts for 2025

Before December 31, double-check your 2025 contribution amounts — especially your 401k, IRA, and HSA.
 
I can’t tell you how often I see people think  they’re maxing out… and they’re thousands of dollars short because payroll never updated the limits or because contributions paused after a raise, promotion, or job change.
 
Here are the 2025 contribution limits to use as a quick check:
 
401(k), 403(b), 457 Plans
  • $23,500  annual employee contribution
  • $7,500  catch-up if you’re 50+
  • Total possible with employer contributions:  up to $69,000
 
Solo 401(k) (for business owners)
  • Combine employee + employer contributions 
  • Total limit: up to $69,000  (or $76,500  if you’re 50+)
  • Great for years with higher profit — you can still set this up before year-end if needed
 
SEP IRA (for business owners)
  • Employer-only contributions
  • Up to  25% of compensation , capped at  $69,000
  • A solid option if you want a retirement option without any potential administrative costs with the Solo 401k
 
Traditional & Roth IRA
  • $7,000  annual contribution
  • $1,000  catch-up if you're 50+
  • (Income limits apply for deductibility and Roth eligibility.)
 
HSA (Health Savings Account)
  • $4,300  for individuals
  • $8,550  for families
  • $1,000  catch-up if you're 55+
 
Even a small top-up before year-end can:
- lower your taxable income,
- increase tax-advantaged growth, and
- help you start the new year already ahead.
 
Most people don’t realize how much these numbers shift year to year or how easy it is to fall behind without noticing.  If you got a raise or bonus this year, your percentage-based contributions may not be keeping up.
 
Quick fix:
Adjust your final paycheck contributions or direct part of your bonus toward retirement. It’s one of the easiest year-end tax wins.
 

2. Review your (taxable) investment gains + losses:

Most people hear “tax-loss harvesting” and instantly tune out.   
 
Here is the real translation: Tax loss harvesting is basically using your "not-so-great" investments to lower your tax bill.  If you have investments that are down, you can sell them , lock in the loss, and use that loss to cancel out  gains you made elsewhere.
 
And yes, there’s a real dollar benefit:
  • You can use losses to offset unlimited investment gains , and
  • You can use up to $3,000  of leftover losses to reduce your regular taxable income.
And if you have more than that?  You don't lose it.  Those losses roll forward into future years like a tiny tax gift you get to keep using towards gains. 
 
This is one of the easiest year-end moves high earners miss, and it often saves you money without  changing your actual long-term investment plan.
 

3. Double-check your tax withholdings 

 
This one gets missed constantly . High earners with variable income tend to assume their CPA will raise a red flag if something’s off, but in reality, most CPAs aren’t monitoring your withholdings throughout the year.
 
If you had any of these this year:
  • RSU vesting or stock sales
  • A big bonus
  • A promotion or raise
  • A new business
  • Marriage / divorce
  • Higher childcare or medical expenses
…your withholdings may not match reality.
 
A quick check prevents the dreaded April surprise.
This is something I run for almost every client in November.
 

4. Make Your Money Work Twice Through Giving

Donations is one of the most overlooked tax strategies and one of the easiest ways to make your money go further. If you’ve had a high-income year, vested RSUs, business income, or large capital gains, you can maximize  both impact and tax savings with a more strategic approach.
 
You can:
  • Donate appreciated stock
  • “Bundle” donations this year to exceed the standard deduction
  • Make gifts that align with your values and tax picture
And if you want flexibility?  Consider using a Donor-Advised Fund (DAF).
 
A DAF lets you make a smart tax move today without  scrambling to pick charities by year-end:
  • Donate appreciated stock now (and take the full tax deduction this year)
  • Invest the funds inside the DAF
  • Decide later  which charities you want to support. Even years from now
 
Key reminder:  Charitable giving only helps taxes when your itemized deductions exceed the standard deduction. Most high earners are closer than they think. Generosity feels even better when it’s tax-efficient.
 

5. Get Real About Holiday Cash Flow 

This is the one that sneaks up on even the most financially responsible women.
Holiday season is basically a masterclass in “accidental overspending.”
One minute you’re buying a gift for a family member and the next thing you know, you’ve said yes to three holiday parties, matching family pajamas, and a cart full of things you didn’t even know you needed.
 
To stay in control:
  • Set a holiday spending cap (and stick to it-ish)
  • Keep meaningful giving separate from the impulse buys
  • Assign your bonus a purpose before it disappears into December chaos
 
Joyful and  intentional is the vibe.
 

6. If you’re a business owner, close your books with intention

Before December 31, take a beat to look at:

  • Estimated taxes(so April doesn’t surprise you)
  • Your S-Corp salary — do you need a quick true-up before year-end?
  • Any equipment or business purchases you were planning anyway
  • Your retirement contributions(Solo 401k, SEP IRA, or SIMPLE IRA)
  • Whether a year-end distribution actually makes sense for your cash flow + taxes

These decisions hit both sides of your life — your taxes and your personal financial plan — so doing a quick sweep now can make January feel a whole lot calmer.


 

Final Thought

You don’t need a full overhaul before January.
You just need to wrap up the year intentionally.
A few simple moves now can help you feel lighter, clearer, and more grounded heading into 2026 so you’re not playing catch-up in March. 
 
 

If you want a quick walkthrough of the exact year-end moves I look at with clients, I put together a 15-minute video that breaks everything down in a simple, practical way. It’ll help you make the smartest decisions before 12/31.

You can watch it here.

 

Q: What’s the most important year-end tax move for high earners?
Making sure your retirement accounts and withholdings are actually maxed and aligned with your income. These two alone prevent the biggest April surprises.

 

Q: Should I tax-loss harvest before December 31?
If you have investments that are down, harvesting losses can offset gains and reduce your taxable income by up to $3,000. It’s a simple move that many people overlook.

 

Q: How do I know if I should do a Roth conversion?

If your income is lower this year, you expect future tax rates to increase, or your pre-tax accounts are heavily weighted, a partial conversion may make sense. It’s worth running the numbers.

 

Q: What should business owners look at before year-end?
Estimated taxes, S-Corp salary adjustments, retirement contributions (Solo 401k, SEP IRA), equipment purchases you were already planning, and whether a distribution makes sense.

 

 

About the Author

Renee Cohen is a financial planner and founder of   Nexa Wealth, where she helps women turn strong income into smart strategy. Her approach blends practical planning with real-life balance, helping clients align their money with what matters most so their financial plans feel as good as they look on paper.

 

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