As cooler fall weather settles in and the final quarter of the year begins, many of us feel a renewed sense of focus. That “back-to-school” energy often extends beyond closets and calendars — it’s also the perfect time to revisit your financial to-do list. At Hanson + Doremus, we view this season as an opportunity to tie up loose ends, review progress, and prepare for the year ahead.
Each fall, we help clients complete several important year-end financial tasks. Chief among them: confirming that Required Minimum Distributions (RMDs) have been taken from retirement accounts, reviewing taxable portfolios for opportunities to offset gains through tax-loss harvesting, and rebalancing portfolios to bring them back in line with target allocations. These steps help ensure portfolios remain aligned with goals and risk tolerances, while also positioning them efficiently for the new year.
Beyond these core items, there are several other important deadlines and opportunities to keep in mind as 2025 comes to a close.
Charitable Giving
If charitable giving is part of your financial plan, year-end deadlines come up quickly. Donations of appreciated securities to a qualified organization or Donor Advised Fund (DAF) must be completed by December 31, 2025, to count for the 2025 tax year. Because processing can take time, we recommend submitting forms to your custodian (e.g. Schwab) by December 9th for mutual fund donations, December 16th for stock and bond donations, and December 23rd for internal Schwab transfers and wires.
Qualified Charitable Distributions (QCDs) from IRAs also need special attention — the receiving charity must cash the check by year-end for it to count towards your 2025 RMD and provide the associated tax benefits.
Retirement Account Contributions
Contributions to Individual Retirement Accounts (IRAs) and Roth IRAs can be made up until the tax filing deadline — April 15th, 2026 for 2025 contributions. However, contributions to employer-sponsored retirement plans such as 401(k)s, 403(b)s, or SIMPLE IRAs must come from wages earned within the 2025 calendar year. If you’re hoping to increase contributions, be sure to update your deferral election with your employer before your final pay periods of the year.
529 College Savings Contributions
If you’re helping a child or grandchild save for education, contributions to 529 plans must be made by December 31st to qualify for 2025 state tax benefits. Many states offer deductions or credits for contributions to in-state plans. For example, Vermont residents receive a 10% state income tax credit on contributions to a Vermont 529 plan — up to $250 per beneficiary for single filers and $500 per beneficiary for married couples filing jointly.
Flexible Spending Accounts (FSAs)
Flexible Spending Accounts allow employees to contribute pre-tax dollars to cover qualified healthcare or dependent care expenses. Most FSA plans follow a “use-it-or-lose-it” rule, requiring funds to be spent by December 31st. Some employers do offer a small rollover amount or a short grace period, so check your plan details to avoid forfeiting unused funds.
Consider using any remaining balance for eligible expenses — from prescription eyewear to medical appointments — before the year closes.
Roth IRA Conversions
A Roth conversion involves moving funds from a pre-tax retirement account (such as a traditional IRA or 401(k)) into a Roth IRA. The converted amount is taxable in the year of the conversion, but future qualified withdrawals from the Roth are tax-free.
Conversions must be completed by December 31st to count for the current tax year. This strategy can make sense if you expect to be in a higher tax bracket in retirement, want to leave a tax-free inheritance, or simply value the flexibility Roth accounts provide — particularly since they are not subject to RMDs. Again, plan for year-end processing delays and complete the necessary paperwork by December 15th.
Planning for Near-Term Cash Needs
As we rebalance portfolios toward year-end, we also encourage clients to plan for upcoming cash needs over the next 12–24 months. If you anticipate major expenses — such as a home project, new vehicle, or extended travel — it’s best to set aside those funds in cash or another conservative investment. Doing so helps protect against market fluctuations and ensures the money is available when needed.
Looking Ahead to 2026
Once you’ve checked off your 2025 financial to-do list, consider setting a few forward-looking goals for 2026. The start of a new year is a great time to build or update your financial plan, review your estate documents, and evaluate your insurance coverage. These steps help ensure your financial life remains organized, intentional, and well-positioned for the future.
As the year winds down, taking time for financial housekeeping can bring peace of mind and is also an opportunity to set the stage for a strong start in the year ahead.
