Planning Ahead: 4 Financial Moves to Consider Now

The end of Q3 is fast approaching, marking the perfect opportunity to take control of your financial planning for the rest of the calendar year. While it’s true that financial to-dos can feel overwhelming, it's empowering to know that proactive decision-making can significantly impact your future. Let’s dive into four smart, strategic moves you can make to enhance your financial well-being before December 31st.

Maximize Retirement Contributions

Take advantage of the opportunities available with the 2025 contribution limits: $23,500 for 401(k)s, with an additional $7,500 catch-up if you’re over 50, and $7,000 for traditional/Roth IRAs, plus a $1,000 catch-up for those over 50. Not only can these pre-tax contributions help reduce your taxable income for the year (except for Roth accounts), but they'll also contribute to building a more secure financial future.

Strategize Charitable Giving

This year might be a good time to consider donation bunching or using a donor-advised fund. If you’re over age 70½, a Qualified Charitable Distribution (QCD) from an IRA can be a particularly effective strategy, as it can satisfy your required minimum distribution if you’re 73 or older.

Fund Your HSA

If you're enrolled in a high deductible health insurance plan, have you maxed out your Health Savings Account (HSA) yet? The 2025 limits are $4,300 for individuals and $8,550 for families. HSAs offer triple tax benefits and serve as powerful tools for both immediate medical expenses and long-term savings.

Explore Roth IRA Conversions

Consider converting a traditional IRA to a Roth IRA, particularly if you’re in a lower tax bracket this year. While it’s important to note that Roth conversions aren't suitable for everyone, they can provide tax-free retirement income if planned properly. Make this a part of your annual financial discussion to determine its appropriateness for your circumstances.

Remember, taking a little time now to consider these moves can make a significant difference in your financial outcomes as the new year approaches. It's important to recognize that not all strategies are right for everyone. Make sure to consult with a financial professional or CPA. Finally, take a moment to evaluate your options or schedule a financial check-in to ensure you’re on the right path.