The last weeks of the year are a good time to tidy up your finances, because some actions have December 31 deadlines. Use this checklist to work through it step by step. Rules and limits change, so confirm current details for your accounts.
Time-sensitive items
- Workplace retirement plan: payroll contributions for the year generally must go through payroll by December 31. Check whether you are capturing your full employer match.
- Flexible spending account (FSA): many plans have a use-it-or-lose-it rule, sometimes with a short grace period or limited carryover. Check your plan's terms and spend what you would otherwise lose.
- Health insurance open enrollment: compare plans, premiums and your expected needs before the deadline.
- Charitable gifts: to count for this tax year, donations generally must be made by December 31. Keep receipts.
- Withholding check: if you expect to owe or get a large refund, adjust your W-4 or review the IRS Tax Withholding Estimator.
Items with later deadlines
- IRA and HSA contributions: contributions for the tax year can generally be made until the tax filing deadline. Confirm the dates for your accounts.
- Gather tax documents: W-2s and 1099s arrive in January. Keep a folder ready.
Review items
- Net worth snapshot: list assets and debts to see how you progressed. The Financial Checkup can help.
- Emergency fund: is it where you want it? See how much you need.
- Debt plan: choose a payoff strategy for next year. See how to pay off debt fast.
- Credit reports: request your free reports and look for errors. See the 90-day credit plan.
- Subscriptions and recurring bills: cancel what you do not use.
- Beneficiaries and insurance: make sure beneficiaries on retirement accounts and policies are current.
- Budget: update for next year's income and expenses. See how to build a first budget.
Set next year's goals
Pick two or three specific goals: a savings amount, a debt payoff date, a savings rate. Put numbers on them using the Savings Calculator, the Credit Card Payoff Calculator and the Retirement Calculator. Then automate the first step so it happens without effort.
Common questions
What should I do with my finances before the end of the year?
Handle time-sensitive items first: workplace retirement contributions, FSA balances, open enrollment, charitable gifts and withholding. Then review your budget, debts and goals.
Can I still contribute to an IRA after December 31?
Contributions for the tax year can generally be made until the tax filing deadline. Confirm the date and your eligibility.
Do I lose my FSA money at year end?
Often, unless your plan has a grace period or carryover. Check your plan rules.
How often should I review my finances?
A quick monthly check and a deeper year-end review work well for most people.