As the calendar winds down, the final weeks of the year present a strategic opportunity to assess and refine your financial picture. Whether you're managing a diversified portfolio, overseeing multiple income streams, or simply aiming to maximize tax efficiency, a thoughtful year-end review can help ensure your finances are organized, optimized, and aligned with your goals.

Use this checklist to guide your review before December 31:

1. Tax Planning & Harvesting Opportunities

Year-end tax planning is more than just estimating your liability—it’s about actively shaping it. One of the strategies we believe to be most effective is tax-loss harvesting, which involves selling underperforming investments to offset capital gains. This can reduce your taxable income while allowing you to reinvest in similar assets to maintain your portfolio’s integrity.

Additionally, review your realized gains and losses, charitable contributions, and any potential deductions. If you’re self-employed or own a business, consider accelerating expenses or deferring income to manage your tax bracket. High-income earners should also evaluate exposure to the Net Investment Income Tax (NIIT) and the Alternative Minimum Tax (AMT), both of which can be mitigated with proactive planning.

2. Retirement Contributions & Optimization

Maximizing retirement contributions is a cornerstone of long-term wealth building and tax efficiency. For 2025, the contribution limit for 401(k) plans is $23,000 (plus a $7,500 catch-up if you're 50 or older), and for IRAs, it's $7,000 (with a $1,000 catch-up).

And as we look to 2026, several key updates to retirement account contributions include:

• IRA Contributions. IRA contribution limits increase from to $7,500, with an additional “catch-up” of $1,100 for individuals 50 and over.
• 401(k) Contributions. This limit increases to $24,500, with an additional $8,000 catch-up.
• Required Roth 401(k) Catch-Up Contribution. Individuals age 50 and above earning $150,000 or more in wages must make all catch-up contributions in Roth.
• 401(k) “Super Catch-Up” Contributions. Individuals age 60-63 making catch-up contributions now have the ability to add $11,250 as a catch-up contribution (instead of $8,000).

Beyond simply contributing, consider whether a Roth conversion makes sense. Converting traditional IRA funds to a Roth IRA can be advantageous in years when your income is lower or if you anticipate higher future tax rates. While this triggers a taxable event, it can potentially lead to tax-free growth and withdrawals later.

Also, review your retirement account allocations. Are they aligned with your risk tolerance and time horizon? Rebalancing now can help you start the new year with a portfolio that reflects your current goals.

3. Charitable Giving & Philanthropic Strategy

Charitable giving is both a meaningful and strategic financial move. If you itemize deductions, donations made by year-end can reduce your taxable income. But beyond cash contributions, consider donating appreciated securities. This allows you to avoid capital gains tax while still receiving a full deduction for the fair market value.

For those with larger philanthropic goals, Donor-Advised Funds (DAFs) offer flexibility. You can contribute assets now for an immediate tax deduction and distribute grants to charities over time. This is especially useful in high-income years or when planning for legacy giving.

Also, if you’re over 70½, Qualified Charitable Distributions (QCDs) from IRAs can satisfy required minimum distributions (RMDs) while excluding the amount from taxable income—a win-win for retirees looking to support causes they care about.

4. Estate Planning & Gifting Strategies

The end of the year is a prime time to revisit your estate plan. The annual gift tax exclusion allows you to gift up to $18,000 per recipient in 2025 without triggering gift tax or using your lifetime exemption. This can be a powerful tool for transferring wealth efficiently, especially when combined with 529 plan contributions or family trust funding.

Review your beneficiary designations on retirement accounts, insurance policies, and transfer-on-death accounts. These override your will and should reflect your current intentions. Also, ensure your estate documents—wills, powers of attorney, and healthcare directives—are up to date and aligned with your broader financial goals.

5. Cash Flow & Liquidity Review

Even for those with substantial assets, liquidity matters. Year-end is a great time to assess your cash flow: Are your income sources stable? Are your expenses aligned with your goals? Review your emergency fund, upcoming obligations, and any large purchases planned for the next year.

Also, evaluate your debt structure. Are there opportunities to refinance or pay down high-interest loans? For those with variable-rate debt, consider how interest rate trends may affect your payments in the coming year.

Finally, look at your overall asset allocation. Is your portfolio too concentrated in one sector or geography? Are you holding excess cash that could be working harder elsewhere? A liquidity review ensures you’re not only solvent but strategically positioned for growth and resilience.

Conclusion

A thoughtful year-end financial review is more than a checklist—it’s a chance to align your financial life with your values, goals, and an evolving economic landscape. By focusing on tax strategy, retirement optimization, charitable giving, estate planning, and liquidity, you can enter the new year with clarity and confidence. Whether you manage your finances independently or with a trusted advisor, focusing on these five areas provides an excellent opportunity to position yourself for success.

The information in this material is not intended as tax or legal advice. Seven Springs Wealth Group does not provide tax or legal advice. Consult with your tax professional before making any changes to your accounts. All investing involves risk, including the possible loss of principal. Nothing contained herein should be construed as individualized advice and is for informational purposes only. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be suitable or profitable for a client's investment portfolio. Past performance is no guarantee of future performance. Seven Springs Wealth Group is an investment adviser registered with the US Securities and Exchange Commission (SEC). Registration does not imply any level of skill or training. For a complete discussion of Seven Spring Wealth Group’s services and fees, you should carefully review the firm’s disclosure brochure available at www.adviserinfo.sec.gov