Resources/Planning Best Practices

JULY 2025

Let’s Get Ahead of the Year-End Crunch (Before It Sneaks Up)

Justin Hearty

Not sure what the focus on financially before the year wraps up? Here’s a quick look at what’s worth doing now – before things get hectic.

As we move through the second half of the year, many households find it helpful to pause and take stock—not because anything urgent has come up, but because there’s still time to make adjustments before things feel rushed.

Between school schedules, holidays, and year-end business planning, the last few months of the year tend to move quickly. Financial deadlines often sneak up in the background. The good news is that you can stay ahead of them. A little bit of planning now can go a long way toward ending the year on solid ground.

Whether you’re someone who checks in regularly or you’re just starting to get more organized, this is a great time to ask: Are there any actions I can take now that my future self will thank me for in December?

Here are a few areas worth reviewing while the pace is still manageable:

Roth Conversions
Required Minimum Distributions
Charitable Giving
Gifting to Family
Flexible Spending Accounts
529 Contributions
Estate Planning and Beneficiary Reviews

Now, let’s dive into the details!

Roth Conversions

Converting some of your pre-tax retirement savings into a Roth IRA can make sense in certain situations—especially if your income is lower this year or if you expect tax rates to rise in the future. Conversions must be completed by December 31 to count for this tax year, and they can’t be reversed. Reviewing your income projections mid-year allows time to decide if a partial conversion is a smart move.

If your income varies year to year — for example, due to bonuses, business income, or stock-based compensation — it may make sense to approach Roth conversions in stages. Some households convert a small amount earlier in the year and then revisit the strategy closer to year-end. Doing so can help you stay within the desired tax bracket while still taking advantage of the opportunity.

Required Minimum Distributions (RMDs)

If you’re age 73 or older—or if you’ve inherited certain types of retirement accounts—you may be required to take a distribution by December 31. Miss that deadline, and the penalties can be significant.

Even if you don’t need the income, there may be ways to use that distribution strategically, such as making a qualified charitable distribution (QCD) to reduce your taxable income.

Not sure if this applies to you? Now’s a great time to clarify and plan accordingly.

Charitable Giving

Whether you give regularly or are planning a larger gift this year, early planning gives you more flexibility. Gifts of appreciated stock or contributions to donor-advised funds (DAFs) can be especially tax-efficient—but they also take time to process.

Many custodians have cutoff dates well before year-end, so thinking ahead helps you give with impact and ease.

Gifting to Family

In 2025, you can gift up to $19,000 per person without needing to file a gift tax return. For those looking to support family members, reduce future estate size, or pass wealth intentionally, this can be a powerful tool.

Gifts must be made by December 31 to count for the year, and starting the conversation now gives you time to plan your approach.

Flexible Spending Accounts (FSAs)

If you’re using a healthcare or dependent care FSA, check your remaining balance and plan rules. Many FSAs follow the “use it or lose it” model, meaning unused dollars could be forfeited at year-end.

Some employers offer a grace period or carryover, but not all do. If you have money left, it might make sense to schedule eligible expenses like medical visits, dental work, or vision care now.

529 Contributions

Contributions to 529 education savings plans may qualify for state income tax deductions—but in most cases, those contributions must be made by December 31 to count for that tax year.

Even if college is years away, these accounts offer flexibility and tax advantages for many types of education—and in some cases, Roth rollovers.

Estate Planning and Beneficiary Reviews

While this isn’t a hard deadline, the second half of the year is a great time to review your estate documents, account ownership, and beneficiary designations.

If there’s been a major life change—such as a marriage, divorce, birth, or death—it’s worth confirming that your plan and paperwork reflect your current intentions. Even small updates can help prevent confusion or conflict down the road.

Final Thought

Financial planning isn’t about timing the market or getting everything perfect. It’s about being intentional, staying organized, and giving yourself room to make good decisions—especially when deadlines are involved.

If you already have a plan in place, this is a great moment to fine-tune it. And if you’re not quite sure where to start, even a short conversation can help bring clarity and focus.

This type of check-in is something we help with regularly as life and priorities evolve. Whether you’re already working with us or just starting to explore your options, we’re always happy to help you think ahead.

About Strategic

Founded in 1979, Strategic is a leading investment and wealth management firm managing and advising on total client assets of over $2.5 billion.

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