Seven smart money moves to make before the end of the year

With December just around the corner, you may be planning your holiday shopping and considering what to make your New Year’s resolution. But don’t forget to give your finances the year-end treatment, too. 

It’s important to check in on your investing and savings goals regularly, and the new year can be a great time to assess your progress and see if you need to make any changes. Here are seven moves to make before the ball drops on Dec. 31. 

1. Should you review your 401(k) contributions before the end of the year?

Yes. Review your 401(k) withholding before Dec. 31 to make sure you are contributing as much as you comfortably can and capturing your employer's full match if one is offered. Kristen Kuzma, wealth manager at Fairway Wealth Management, recommends this year-end check for anyone with an employer-sponsored retirement plan.

The maximum 401(k) contribution is $24,500 in 2026, and people over the age of 50 are eligible to make an additional "catch-up" contribution of $8,000. Those aged 60 to 63 have the option to contribute an extra $3,250 on top of that.

You may not be able to contribute as much as the IRS allows, and that is okay. The priority is to contribute at least enough to snag the full employer match if one is available. If you expect to earn more next year, this is also a good moment to raise your contribution rate.

2. Do you need to use up your FSA funds by Dec. 31?

In most cases, yes. If you have a flexible spending account (FSA) through your employer, the funds typically follow a use-it-or-lose-it rule with a Dec. 31 deadline. There are exceptions, so check your specific plan's rules before assuming your balance will roll over.

If you are not sure what qualifies as an eligible purchase, you can visit the FSA Store to see what is covered. Eligible items include sunscreen, pimple patches and even fitness trackers, so spending down a remaining balance can be practical rather than wasteful.

3. Is the end of the year the right time for tax-loss harvesting?

Yes. The deadline for tax-loss harvesting is typically Dec. 31, so December is the time to review your portfolio for opportunities. Tax-loss harvesting means selling investments that have lost value and using those losses to offset capital gains from other investments, which can potentially lower your tax bill.

Caitlin Frederick, partner and director of Financial Planning at Ullmann Wealth Partners, recommends this year-end portfolio review. She notes that selling a losing position does not have to mean sitting out of the market.

"When selling positions with losses, substitute positions can be purchased to continue participating in the market but with the advantage of the tax loss," Frederick said.

Tax-loss harvesting can be complicated, and the rules around substitute positions have nuances. Consider discussing your specific situation with a tax professional before you sell.

4. Should you make a Roth IRA contribution or conversion before the year ends?

If you meet the income guidelines, a Roth IRA contribution is worth considering, and a Roth conversion typically needs to be completed by Dec. 31 to count for the tax year. You do not have to rely solely on your employer's plan to save for retirement. Kuzma recommends that taxpayers who meet certain income guidelines consider contributing to a Roth individual retirement account (IRA).

Roth IRAs are a tax-advantaged way to save for retirement. In 2026, single taxpayers who earn less than $153,000 and joint filers who earn under $242,000 are eligible to contribute. You can contribute up to 7,500(8,600 if you are age 50 or older) in 2026. Higher earners who do not meet these income guidelines can consider a backdoor Roth IRA strategy, Kuzma said. A backdoor Roth IRA involves making a non-deductible contribution to a traditional IRA (limited to the max amount of $7,500) and immediately transferring that contribution to a Roth IRA.

"It's a silly extra step but has been the acceptable work around for high earners that want to contribute to a Roth but don't qualify under the income guidelines," she added.

5. Should you consolidate your bank accounts before the new year?

Yes, if you are holding more accounts than you actually use. Consolidating checking and savings accounts before Jan. 1 gives you fewer balances to track and a cleaner picture of your money going into the new year. Many people accumulate extra accounts over time without meaning to.

You may have opened new accounts for new eras of your life, such as graduating college, to nab a higher interest rate, because you moved, or for another reason. Managing many different checking accounts can be cumbersome and an administrative hassle, Frederick said.

"Consider consolidating accounts where possible to enter the new year with a more financially clean and organized balance sheet," she added.

In some cases, consolidating means opening one new account to replace several old ones. That can make sense if you are using a traditional savings account that offers much lower annual percentage yields (APYs) than high-yield alternatives. With Current spending accounts, all features seamlessly work together. You can earn up to a 4.00% annual bonus on money in your Savings Pods, and if you sign up for our secured charge card, the Build Card, you still have a single balance to view and manage on the platform. Current also offers budgeting in its app, so you can set spending goals for the new year in the same place you manage your money, rather than juggling a separate spreadsheet or tool.

6. Should you revisit your budget at the end of the year?

Yes. The end of the year is a good time to determine whether your budget still aligns with your income and goals. Take a few minutes to look at how much you spent in categories like dining out, entertainment and transportation, and decide whether you need to make any tweaks. Your spending account activity is a good place to start. With Current, you can create budgets for different categories to easily track your spending.

If your income or expenses will change in the coming year, factor those upcoming changes in when planning your budget for the year ahead.

7. How often should you review your investment strategy?

Your investment strategy deserves a review at least periodically, and before year-end is a natural checkpoint. Make sure the different investment asset classes and funds you own still align with your goals, and rebalance when they don't. Rebalancing means buying and selling to get back to your ideal asset allocations.

"Your investment selections should be monitored periodically so if it’s been a while since you’ve last taken a look at the funds you own, how they are performing, and whether your allocation is on track or needs some adjusting, plan to do this before year-end," Kuzma said.

Current does not provide financial, legal, or tax advice. This blog is for informational purposes only, and should not be relied upon for financial, legal, or tax advice.