5 Money Moves to Make Before 2025 Ends

The clock is ticking. Once January 1st hits, your 2025 tax optimization window slams shut. Here are five moves to make before the year ends.

1. Max Out Your 401(k)

2026 Limit: $23,500 ($31,000 if you're 50+)

Check your final paycheck. If you haven't hit the limit, you may still be able to increase your contribution percentage for December.

The Math:

• Every $1,000 in your 401(k) reduces your taxable income by $1,000
• At a 24% bracket, that's $240 saved in federal taxes alone
• Plus state taxes if applicable
• Plus decades of tax-deferred growth

If your employer matches, you're leaving free money on the table by not contributing at least to the match.

Calculate your take-home with 401(k) adjustments →

2. Harvest Your Tax Losses

If you have investments in taxable accounts that are down, consider selling them to "harvest" the loss.

How it works:

• Sell investments at a loss
• Use losses to offset capital gains
• If losses exceed gains, deduct up to $3,000 from ordinary income
• Carry forward remaining losses to future years

The rules:

• Wait 31 days before buying the same or "substantially identical" security (wash sale rule)
• Consider buying a similar (but not identical) investment to maintain market exposure

This works best if you have gains to offset. Check your brokerage statements.

3. Fund Your HSA (Triple Tax Advantage)

If you have a High Deductible Health Plan, your HSA is the most tax-advantaged account available:

2026 Limits: $4,300 (individual) / $8,550 (family)

The Triple Tax Advantage:

1. Tax-deductible contributions
2. Tax-free growth
3. Tax-free withdrawals for medical expenses

Unlike FSAs, HSA funds roll over forever. Many people use their HSA as a "stealth IRA"—pay medical expenses out of pocket now, let the HSA grow, then reimburse yourself decades later.

You have until April 15, 2026 to contribute for 2025—but why wait?

4. Make Charitable Donations (Strategically)

Donations made by December 31st count for your 2025 taxes.

The strategy:

• If you're over the standard deduction, itemize and deduct donations
• If you're under, consider "bunching"—donate two years' worth now
• Donate appreciated stock instead of cash (avoid capital gains entirely)
• Use a Donor Advised Fund for flexibility

2025 Standard Deduction:

5. Review and Rebalance

Before year-end, check your portfolio allocation:

• Has market movement thrown off your target allocation?
• Do you need to rebalance in tax-advantaged accounts?
• Are you taking on too much or too little risk for your timeline?

Rebalancing in your 401(k) or IRA has no tax consequences. In taxable accounts, consider tax implications before selling.

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The Before-2025-Ends Checklist

Run Your Numbers

• US Salary Calculator - See 401(k) and tax impacts
• Investment Returns Calculator - Project your growth
• Debt Payoff Calculator - Plan your debt attack
• FIRE Calculator - Track financial independence

The Bottom Line

Tax planning isn't just for April. The moves you make in the next few days can save you thousands in 2025 and set you up for a stronger 2026.

The best time to optimize was January. The second best time is right now.