Smart Money Moves Before the End of the Year

As the leaves change across Southern Indiana and another year draws to a close, families begin shifting their focus from summer vacations and school schedules to holiday plans and—often overlooked—financial reflection.

In my work with families throughout the region, I’ve learned that fall isn't just for pumpkin patches and football; it's one of the most critical seasons for financial planning. The decisions made in these last few months can have a meaningful impact on your tax liability, retirement goals, and overall financial wellness.

Here’s what I encourage all Southern Indiana families to prioritize before December 31:

1. Improve Retirement Contributions

Before you ring in the new year, consider maxing out contributions to your tax-advantaged retirement accounts. For 2025, individuals can contribute up to $23,500 to a 401(k) (plus a $7,500 catch-up if you’re 50 or older). IRAs cap out at $7,000, or $8,000 with the catch-up.

Not only do these contributions help secure your future, but they can also help reduce your taxable income today. If you haven’t reviewed your contribution levels lately, fall is the perfect time to adjust.

2. Evaluate Your Tax Withholding

Many families in our area are surprised come April when their refund isn’t what they expected—or worse, they owe. With changing income from side jobs, bonuses, or investment gains, it's worth checking in with a tax professional now to make sure you're not under—or over—paying the IRS.

Use the IRS withholding estimator or speak with your advisor to prevent unpleasant surprises.

3. Use or Lose: Flexible Spending Accounts (FSAs)

If you’ve been contributing to a Flexible Spending Account (FSA) for healthcare or dependent care, remember: many of these accounts have “use it or lose it” provisions. That means unused funds may be forfeited if not spent by year-end.

Schedule medical appointments, purchase approved supplies, or submit claims before the deadline.

4. Review Your Charitable Giving Strategy

Southern Indiana is home to many generous families and a strong sense of community. If charitable giving is part of your values, year-end is a great time to align those intentions with your financial strategy.

Donating appreciated assets (like stock) instead of cash can be more tax-efficient. And for those 70? or older, Qualified Charitable Distributions (QCDs) from IRAs offer another strategic advantage. Be sure to keep proper documentation for all contributions.

5. Harvest Investment Gains & Losses

It’s been a volatile year for the markets, and there may be opportunities to rebalance your portfolio by harvesting losses to offset gains. This strategy, known as tax-loss harvesting, can reduce your taxable capital gains.

Work with your advisor or tax professional to assess what makes sense for your situation.

6. Plan for Education Costs

If you’re saving for a child’s education, now’s a great time to contribute to an Indiana 529 CollegeChoice plan. Not only are these accounts tax-deferred, but Indiana residents can claim a 20% state tax credit on contributions up to $7,500 annually—translating to a $1,500 credit.

Contributions must be made before December 31 to count for the 2025 tax year.

7. Review Your Insurance & Estate Plans

A lot can change in a year—new children, new homes, new jobs. Reviewing your life, health, home, and auto insurance can help ensure you’re properly covered heading into the new year.

Also, revisit your will, power of attorney, and beneficiary designations. It's easy to put these off, but they’re critical components of a well-rounded financial plan.

Final Thought: Don't Wait Until December

Many of these financial strategies require time to implement. Don’t wait until the holiday season is in full swing to check in with your financial advisor. A proactive fall meeting can set you up to finish the year strong—and start the next one with more confidence.

At the end of the day, financial health—like physical health—requires seasonal care and regular checkups. As we transition from autumn into winter, let’s make sure your financial plan is prepared to weather any season.