3 Key Financial Moves to Make Before 2025 Ends

Key Points

• Aim to max out your 401(k) or meet whatever personal savings goal you've set.

• Take losses strategically in your portfolio to offset gains.

• Be mindful of RMD deadlines to avoid a huge penalty.

• The $23,760 Social Security bonus most retirees completely overlook ›

It's hard to believe that there are only a few more months left of 2025. But before we know it, the weather will be cooling, the leaves will be changing colors, and we'll be frantically doing our holiday shopping and making December travel plans.

Now that September is upon us, it's a good time to assess your finances and tackle a few key matters before the year is up. Here are three moves to put on your list before 2025 comes to an end.

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1. Finish funding your 401(k)

Maxing out a 401(k) plan in 2025 is no easy feat. The limit is $23,500 for workers under 50, and $31,000 for those ages 50 and over. Plus, if you're between ages 60 and 63, you get a 401(k) catch-up contribution limit of $11,250 this year instead of $7,500, bringing your total allowable contribution to $34,750.

You don't necessarily have to max out your 401(k) by year's end, since that may not be feasible for you. But what you should do before 2025 wraps up is finish funding your 401(k) based on the savings goal you set for yourself, whether it's $3,000, $5,000, or something else.

It's also a good idea to try to contribute enough to your 401(k) to snag your complete workplace match. Giving up even a small portion of that match is akin to saying no to free money.

2. Take losses in your portfolio to offset gains

Despite a tumble in April, you may be looking at gains in your stock portfolio year to date. If you don't want to face a potentially huge capital gains tax bill, then now's a good time to strategically dump some losing stocks.

Selling stocks at a loss in your portfolio can do the job of canceling out gains. In fact, if you have losses that exceed your gains, you may want to take them if you think the stocks in question won't recover. You can use up to $3,000 in capital losses to offset ordinary income, and carry remaining losses into future tax years.

3. Take your required minimum distribution if you're on the hook for one

If you have a traditional IRA or 401(k) plan, you unfortunately don't get to totally control when you take withdrawals. If you're 73 or older, you must take your required minimum distribution for the year by Dec. 31. If you fail to take that withdrawal, you could be looking at a penalty of 25% of the amount that should've been withdrawn.

Keep in mind, though, that just because you take a retirement plan withdrawal doesn't mean you have to spend the money. If you don't have a need for it, you could always reinvest it in a non-tax-advantaged account, use it to start a CD ladder, or use it for other investment options.

The moves you make in the next few months could help you close out 2025 feeling better about your finances. Aim to tackle these three in particular before the new year arrives.

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