Year-End Financial Checklist: 12 Money Tasks Before December 31
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The end of the year is a natural checkpoint for your money, and a few tasks really do have a December 31 deadline. Others are simply easier to do now, before January's new bills, tax forms and resolutions arrive.
You don't need to do all twelve in one sitting. Spread them across November and December, an hour here and there.
Tasks With a December 31 Deadline
1. Use expiring benefits
If you have a flexible spending account (FSA), check how much is left and your plan's rules. Many FSAs are "use it or lose it," though some plans offer a grace period or let you carry over a limited amount. Also check for expiring rewards, gift cards, insurance benefits like dental cleanings, and vacation days.
2. Check your workplace retirement contributions
Contributions to a workplace plan like a 401(k) generally have to come out of paychecks dated in the calendar year. If you want to contribute more for this year, talk to payroll soon. IRA contributions for the year can generally be made up to the tax filing deadline the following spring.
3. Make any planned charitable donations
Donations generally count for the tax year in which you make them. Keep receipts or acknowledgment letters, especially for larger gifts.
4. Take required minimum distributions, if they apply to you
If you're old enough to be required to take distributions from certain retirement accounts, or you've inherited one, check whether a distribution is due by year-end. The rules are specific, so confirm with your plan provider or a tax professional.
Tasks That Set Up Next Year
5. Review your spending for the year
Total up the year's spending by category. Which categories surprised you? Which irregular costs did you forget? This is the best data you'll have for next year's budget. (Where does my money go?)
6. Calculate your net worth
Add up what you own, subtract what you owe, and compare with last year. It's one of the clearest measures of progress. (How to track your net worth.)
7. Build next year's budget and sinking funds
List the irregular costs you know are coming next year, like renewals, registrations, birthdays, travel and back-to-school, and set up monthly sinking funds for them. (How to set up a sinking fund.)
8. Set two or three money goals
Keep it to a few specific goals with numbers and dates. (How to set financial goals.)
Tasks for Organization and Protection
9. Start a tax folder for the new year
Create a folder, paper or digital, for tax documents that will arrive in January and February: W-2s, 1099s, interest statements, mortgage interest forms and donation receipts. (How to organize financial documents.)
10. Check your credit reports
You can get free credit reports from each of the three nationwide credit bureaus at AnnualCreditReport.com, now available weekly. Look for accounts you don't recognize and errors in balances or payment history. (How to read a credit report.)
11. Review insurance and beneficiaries
Many employers hold benefits open enrollment in the fall. Confirm your health, life and disability coverage still fits, and check that beneficiaries on insurance and retirement accounts are up to date, especially after a marriage, divorce or birth.
12. Clean up subscriptions renewing in January
Many annual subscriptions and memberships renew at the start of the year. List them now and cancel anything you won't use. (Annual vs. monthly subscriptions.)
The Checklist at a Glance
| ✓ | Task | Deadline-sensitive? |
|---|---|---|
| ☐ | Use FSA funds and expiring benefits | Yes |
| ☐ | Check workplace retirement contributions | Yes |
| ☐ | Make charitable donations and keep receipts | Yes |
| ☐ | Required minimum distributions (if applicable) | Yes |
| ☐ | Review the year's spending | No |
| ☐ | Calculate net worth | No |
| ☐ | Build next year's budget and sinking funds | No |
| ☐ | Set two or three goals | No |
| ☐ | Start a tax folder | No |
| ☐ | Check credit reports | No |
| ☐ | Review insurance and beneficiaries | Often tied to open enrollment |
| ☐ | Cancel unwanted January renewals | Before renewal dates |
Don't Forget the Holidays Themselves
December spending can undo a good year. Set a total holiday budget before the season starts, and track it. (How to budget for the holidays.)
Frequently Asked Questions
What financial tasks should I do before the end of the year?
Prioritize the deadline-sensitive ones: using expiring benefits, retirement contributions through payroll, donations and any required distributions. Then review your year and set up next year's budget.
When should I start my year-end financial review?
November is ideal. It leaves time to act on deadline items before the holidays get busy.
Do I need to do all twelve tasks?
No. Some won't apply to you. Pick the ones that do, and spread them out.
Start the Year Knowing Where You Stand
A year-end review is the bigger, once-a-year version of a monthly money reset. An hour or two now means starting January with a clear picture, a plan, and no surprises.
My Money Map keeps your savings goals, debts and bills in one place, which makes year-end review, and next year's plan, much simpler.
This article is for general educational purposes and isn't tax or personalized financial advice. Tax rules change; check current IRS guidance or ask a tax professional.
Sources
- Federal Trade Commission, You now have permanent access to free weekly credit reports
- Internal Revenue Service, Retirement plan and IRA required minimum distributions FAQs