Year-End Action Items for Participants

As we approach the final weeks of 2025, there’s still time to make adjustments that can strengthen your financial plan before year-end. Below is our annual checklist—practical reminders to help you finish the year well and set up a strong start to 2026.

A quick note: your advisor, tax professional, plan administrator, and custodians will need time to process requests before December 31. If any of these items apply to you, please start early so your team can act on your behalf.

1) Maximize retirement plan contributions

If you’re looking to boost savings or manage taxable income, start with your workplace retirement plan and consider adjusting your deferral rate for the final pay periods of the year. The 2025 employee deferral limit for 401(k)/403(b)/most 457(b) plans is $23,500; those who are 50 years of age or older can contribute an additional $7,500 in catch-up contributions. (Note: A special SECURE 2.0 catch-up of $11,250 applies to those age 60–63.)

You can also fund IRAs (Traditional or Roth) up to $7,000 for 2025 (or $8,000 if you’re 50 or older). Remember, 2025 IRA contributions can be made up to the federal tax filing deadline in April 2026. 

2) Complete Required Minimum Distributions (RMDs)

Investors 73 or older must generally take RMDs from pre-tax retirement accounts by December 31. Calculations are based on prior-year end balances. If you have multiple IRAs, you can aggregate RMDs and take the total from one IRA, but qualified workplace plans require distributions from each plan separately. (Roth 401(k)s and IRAs have no lifetime RMDs for the original owner.)

3) Evaluate a Roth IRA conversion

A Roth conversion transfers assets from a pre-tax account to a Roth IRA/401(k) (taxable in the conversion year), trading a known tax bill today for potential tax-free growth and withdrawals later. This is a useful strategy in lower-income years, after large charitable gifts, or when you have room in a lower tax bracket. Coordinate with your tax professional to model scenarios and avoid unintended “bracket creep” or Medicare IRMAA surprises. Keep in mind that taxes due on Roth conversions completed within the 401(k) cannot be paid with funds in the 401(k) account.

4) Update beneficiaries and key elections

Looking ahead 

Looking ahead to 2026: many figures the IRS updates annually—tax brackets, the standard deduction, phaseouts, and contribution limits—will reset, so expect new numbers next year. If you’re between the ages of 60 and 63, remember the enhanced catch-up window for workplace plans in 2025. When the plan allows—and if cash flow supports it—it can help strengthen savings in the years leading up to retirement.

At The Fiduciary Group, our goal is to keep your financial plan aligned with what matters most to you—through market cycles and life events. If you’d like help prioritizing which actions make sense for your situation, we’re here to help.