As the year ends, many people review their finances to prepare for the new year. Here are five common areas to consider before December 31st:
1. Use Remaining FSA Dollars
Flexible Spending Accounts often expire at year-end. Eligible uses may include:
– Prescriptions
– Contact lenses
– OTC medications
– Sunscreen
– First-aid Supplies
– Dental Work
Make sure you review your plan details to avoid losing unused funds.
2. Review Tax Withholdings
If you owed a large amount or received a significant refund last year, consider reviewing your payroll withholdings. Adjusting now may help avoid surprises during tax season.
3. Evaluate Retirement Contributions
If you’re close to annual contribution limits for 401(k)s or IRAs, you may want to review options before year-end. Contributions made now can start compounding as the new year begins.
4. Consider Tax-Loss Harvesting
If you have investments that are down, selling them before year-end may allow you to offset gains elsewhere. Consult your advisor before making changes to ensure this strategy fits your situation.
5. Audit Subscriptions
Review recurring charges for unused apps, streaming services, or old free trials. Many households save hundreds annually by eliminating unnecessary subscriptions.
Bottom Line: These steps may help improve your financial organization heading into the new year. Taking time now can set you up for a smoother start to 2026.
Disclaimer: This material is for informational purposes only and should not be considered personalized investment, tax, or legal advice. Always consult your financial or tax professional before making decisions. Past performance does not guarantee future results.
