Before you wrap up 2025, here’s a quick summary of the most important steps to consider for your financial goals:

• Hit your savings goals and set your 2026 plan in motion, including topping off your emergency fund.
• Maximize employee and employer contributions to your 401(k), 403(b), or Solo 401(k) for 2025.
• Make additional pre-tax retirement contributions this year if you’re 50+, taking advantage of current rules before changes take effect.
• Fund tax-advantaged savings accounts like 529s, ESAs, and ABLE accounts before year-end.
• Give strategically to charity and consider a Donor-Advised Fund for flexibility and tax efficiency.
• Review credit reports to catch errors or unusual activity before they become issues.
• Adjust withholdings and plan estimated taxes to keep more money in your hands throughout the year.
• Time expenses and income to optimize tax impact and manage cash flow.
• Complete Backdoor Roth IRA and Mega Backdoor Roth steps to secure tax-free growth for retirement.
• Harvest investment losses in taxable accounts to offset gains and reduce your tax bill.

End-of-year financial checklist for 2025

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As the year comes to a close, it’s the perfect time to pause and take stock of your financial life. Reviewing your money moves before December 31 can help you start the new year stronger, more organized, and on track toward your financial goals.

Whether you’re refining your investment strategy, managing taxes, or planning next year’s savings, a simple year-end review ensures nothing slips through the cracks. Not every step will apply to your situation, but spending a few minutes now can help you avoid missed opportunities later.

At Domain Money, our financial advisors encourage clients to treat this as more than an end-of-year checklist. It’s a chance to realign your finances with your life goals and set yourself up for a confident start to 2025.

Why getting your finances in order before year-end matters

Taking time to organize your finances before the year wraps up does more than check a box—it gives you control. Year-end is when many financial opportunities either expire or reset, from tax deductions and retirement contributions to flexible spending accounts and investment adjustments.

By reviewing your progress now, you can make smart last-minute moves that may lower your tax bill, strengthen your savings, and start the new year with clarity instead of catch-up. It’s also a chance to see whether your financial plan still aligns with your current goals and life changes.

Think of it as setting the tone for next year: confident, intentional, and ready to build momentum, not scramble to regain it.

1. Hit your savings goals

Each year, it’s important to set a clear savings target, whether that’s 20% of your income toward retirement, building your emergency fund, or a mix of both. Take a moment to check in: Are you on track, or do you need to make a push before year-end?

If you’re behind, consider adding extra contributions to your retirement accounts or topping off your emergency fund if you’ve used any of it this year. And if you’ve already maxed out tax-advantaged accounts, a taxable investment account is a great place to put additional savings—there’s no limit there.

Don’t stop at finishing 2025 strong. Take a few minutes now to map out your 2026 strategy. Decide your contribution percentages, set automatic transfers, and plan how you’ll hit next year’s goals from day one. Planning ahead ensures you start the new year confident, focused, and in control of your financial future.

2. Employee retirement plan contributions

Whether you’re using an employer-sponsored retirement account, like a 401(k), 403(b), 457(b), or a Solo 401(k) as a self-employed individual, contributing as an “employee” is a great way to grow your retirement savings. For 2025, you can contribute up to $23,500 if you’re under age 50, or $31,000 if you’re age 50 or older.

If you’re self-employed and just opened a new retirement plan, you may have until your tax-filing deadline to make your first-year contributions. Your employer contributions can also boost your Solo 401(k), generally up to 25% of your compensation (or about 20% if you’re not incorporated). For W-2 employees, however, salary deferrals still need to come from paychecks issued by December 31. Between employee and employer contributions and matching, the annual limit is $70,000 in 2025 ($77,500 if age 50+).

Setting up your plan and making your elections by December 31 ensures you’re fully positioned to take advantage of the tax benefits for the current year, while the contribution deadline for 2025 is March 15, 2026, or April 15, 2026, depending on your business type. Extensions can add another six months if needed. 

3. Make additional retirement contributions (for those age 50+)

If you’re 50 or older, this is a particularly important year to review your catch-up contributions. Starting in 2026, high earners—those making more than $145,000 in wages—will need to make their 401(k) catch-up contributions as Roth (after-tax). The IRS has given everyone through 2025 to prepare, so you can still make your 2025 catch-up contributions pre-tax if that fits your strategy. Now’s a great time to review your plan and confirm how these changes might affect you.

That means if you’re eligible, it’s wise to maximize any pre-tax contributions this year before the new rules take effect. Even if you can’t contribute the full catch-up amount pre-tax in the future, planning now ensures you’re taking full advantage of the current tax break.

Tip: Review your 401(k) elections and make sure you’re on track to hit your limits. This is especially important for high earners who want to optimize tax savings while still building their retirement nest egg.

4.  Fund 529s, ESAs, and ABLE accounts

Beyond your retirement accounts and HSA, many savings vehicles require contributions to be made within the calendar year to count for 2025. If you’re planning to add to these accounts, now is the time to act.

This includes:

• 529 college savings plans: Save for education expenses while enjoying tax-advantaged growth.
• Coverdell Education Savings Accounts (ESAs): Another flexible option for education funding, from K–12 through college.
• ABLE accounts: Support a child with disabilities while keeping contributions tax-advantaged.

*You can contribute to a Coverdell Education Savings Account up until your tax-filing deadline (usually mid-April of the following year). So if you’re still planning to add funds, you’ve got a little extra breathing room. Still, the sooner you contribute, the more time your money has to grow tax-free — a great reason to check this one off before year-end.

5. Give to charity

Charitable giving is not just about taxes; it’s about making an impact and supporting causes that matter to you. That said, if you itemize deductions, timing your donations can have a meaningful effect on your tax situation. Gifts made by December 31 are deductible for this year, while contributions made in January won’t count until next year.

If you’re still deciding which charities to support, consider a Donor-Advised Fund (DAF). This option lets you contribute now, secure the tax deduction for 2025, and then take your time deciding which organizations to support. It’s a flexible, strategic way to give thoughtfully, maximize your tax benefits, and ensure your generosity aligns with your values.

6. Review your annual credit reports

Even though this isn’t strictly a year-end task, taking the time to review your credit reports once a year is a smart financial move. You can get free copies of all three reports for yourself (and your spouse if relevant) at AnnualCreditReport.com.

These reports won’t show your credit score, but they’re invaluable for spotting mistakes, forgotten accounts, or unusual activity. Checking now helps you address any issues before they become bigger problems and gives you a clear picture of your credit health. Think of it as a quick, cost-free way to safeguard your finances and stay in control.

7. Review withholdings and plan estimated taxes

Getting a big tax refund might feel like a bonus, but in reality, it’s money you’ve essentially lent to the government for free. By reviewing and adjusting your income tax withholdings, you can keep more of your income in your own hands throughout the year, giving you more flexibility and control over your cash flow.

For independent contractors and self-employed individuals, don’t overlook quarterly estimated tax payments. The fourth-quarter payment, due January 15, can catch you off guard if you haven’t set aside enough. Planning ahead ensures you’re not scrambling for funds or facing unexpected penalties.

Taking these steps now not only helps you maximize your available cash but also allows you to approach the new year with a clear tax strategy. Think of it as getting your finances aligned so your money works for you, not the IRS.

8. Time your expenses and income

One of the simplest ways to manage your taxes is to pay bills now and defer income when possible. If your tax bracket isn’t changing, front-loading eligible expenses this year and receiving income next year can delay taxes and improve cash flow.

You can also bunch deductions: combine two years’ worth into one to maximize itemizing. This works well for charitable contributions, property taxes, or medical expenses. Businesses use the same principle, paying some expenses early while letting income roll into the next year for better tax timing.

A little planning here gives you more control over your taxes and keeps your financial strategy on track. Before making any timing decisions, consult your tax professional to ensure these strategies fit your individual situation.

9. Complete your Backdoor Roth IRA conversion

If you’re eligible for a Backdoor Roth IRA, aim to finish both the contribution and conversion steps close together for clean records. You don’t have to rush by December 31 — contributions can be made up until Tax Day — but handling it before year-end can simplify next year’s paperwork. And remember, not everyone qualifies, so check with your tax professional first.

The Backdoor Roth IRA is a smart way for high-income earners to grow retirement savings tax-free, even if you’ve phased out of regular Roth contribution limits. But timing matters. Many investors make the contribution, then forget to complete the conversion step, a small oversight that can complicate your financial records or delay your tax-free growth.

If you haven’t handled the conversion yet, take a moment to do it now. It’s a quick move that helps lock in the benefits of this powerful retirement strategy and keeps your year-end finances tidy.

A Domain Money CFP^® professional can help ensure your Roth conversion fits seamlessly into your broader retirement plan—no guesswork, no surprises.

10. Maximize your Mega Backdoor Roth 401(k)

If your employer allows after-tax contributions to your 401(k), the Mega Backdoor Roth can be one of the most powerful tools for building long-term, tax-free wealth. It lets you contribute beyond the standard 401(k) limits, then convert those after-tax dollars into a Roth account (either within your plan or into a separate Roth IRA) where your growth and withdrawals can be tax-free in retirement.

If your employer plan allows after-tax 401(k) contributions, you can add extra dollars before December 31 — that’s the annual contribution deadline. The conversion to Roth can happen later, depending on your plan’s rules. It’s smart to check your plan’s deadlines so you can finish the process smoothly. Timing is key to keeping things clean from a tax standpoint and ensuring your money starts compounding right away.

Got a year-end bonus coming? This could be a great opportunity to boost your after-tax contributions before the cutoff. If not, take time now to look ahead. Calculate how much you’ll need to contribute in 2026 based on a percentage of your income so you can update your payroll elections in January and hit the ground running with a smart, automated savings strategy.

11. Consider tax-loss harvesting

If you hold investments in a taxable account, now is a good time to review for potential tax losses. Compare what you paid for your investments with their current value. If you’ve got losses, you can use up to $3,000 per year to offset ordinary income and apply any additional losses against capital gains. If your losses exceed your gains for the year, you can carry forward those losses to offset gains in future years. Over time, strategically harvesting losses can significantly reduce the taxes you owe on gains. Some investors even end up paying very little in capital gains, thanks to losses carried forward.

Think of this as a way to make your investments work smarter for you. Rather than letting market dips go to waste, you can turn them into a tax advantage. And if you need investment advice, a CFP^® professional from Domain Money can help you through it all.

Finish strong, start confident

Wrapping up the year with a thoughtful financial review helps you take control of your money and your future. By reviewing your savings, investments, taxes, and credit now, you can step into 2026 with clarity, confidence, and momentum. Even small adjustments like topping off your retirement contributions or reviewing your credit reports can have a lasting impact.

At Domain Money, our CFP^® professionals help clients make these moves strategically, so you’re not just reacting to deadlines—you’re planning ahead. Take a few minutes to implement your end-of-the-year checklist, and you’ll set yourself up for a year where your finances work for you, not the other way around.

Ready to get started? Our CFP^® professional team can help you review your year-end strategy, optimize your contributions, and create a clear roadmap for 2026. Schedule a free strategy session with Domain Money today.

Frequently Asked Questions (FAQs):

What is the checklist for year-end closing?

A year-end closing checklist is essentially a roadmap to wrap up your financial year and set yourself up for the next. It covers key areas like retirement contributions, savings goals, tax planning, charitable giving, and investment reviews.

What do I need to do for the end of a financial year?

Closing out the financial year involves reviewing your progress and taking action where needed. This might mean maximizing retirement contributions, checking that savings goals are on track, organizing receipts and financial statements, preparing for any tax payments, and making strategic charitable contributions.

What does an accountant need for year-end?

If you work with an accountant, they’ll need a complete view of your finances to prepare accurate income statements and taxes. This includes bank and investment statements, records of retirement contributions, documentation of charitable donations, and details of any business income or expenses.

What is an end-of-year statement?

An end-of-year statement is a summary of financial activity over the past year. You might receive statements from banks, investment accounts, retirement accounts, or your employer. These documents show deposits, withdrawals, contributions, gains, and losses. They give you insight into your financial progress and are essential when preparing taxes or reviewing your overall financial strategy.

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