Checking your list and checking it twice: Don’t miss these 3 hard deadlines before the ball drops.
Hello there, I’m Tony, and welcome to a very special Financial Friday.
You might notice things look a little different around here. As we continue our climb together, I’m officially transitioning this weekly update to Financial Friday. It’s a small change that reflects our growing community of professionals dedicated to mastering their Monthly Money and reaching the summit of their own Financial Ascent.
Now, as we head into the final week of the year, I can’t help but think of that old Christmas song. Santa is busy making his list and checking it twice—and if you want to end 2025 on the “Nice List” for your future self, you need to do the same.
While everyone else is rushing to the mall, we’re sprinting toward the December 31st hard deadline. These are the final, irreversible actions to maximize your wealth before the clock strikes midnight.
1. The 401(k) and 403(b)Catch-Up Sprint
If you haven’t maxed out your contributions yet, this is your final call. For 2025, the base limit is $23,500.
The Power Move: If you are age 50 or older, you get a “catch-up” bonus of $7,500, bringing your total to $31,000. And if you’re between 60 and 63, 2025 introduced a special “super catch-up” of $11,250 (for a total of $34,750).
- Actionable Step: Check your last pay stub. If you’re short, contact HR immediately to see if you can squeeze one last contribution into your final 2025 paycheck.
Pro-Tip: The 403(b) “15-Year” Secret
If you work for a nonprofit, hospital, or public school and have been with the same employer for 15 years or more, you might have a hidden gift waiting for you. Many 403(b) plans allow a “special catch-up” of up to $3,000 extra per year (with a $15,000 lifetime cap), regardless of your age. If you’re over 50, you can often “stack” this on top of your standard catch-up. Check with your plan administrator—this is a high-level move to supercharge your ascent in these final days of the year!
2. The “Use It or Lose It” FSA Sweep
Unlike your HSA, the money in a Flexible Spending Account (FSA) is often a ticking time bomb. If you don’t spend it by December 31st (or your plan’s specific grace period), that Monthly Money goes back to your employer.
- The Move: Don’t leave money on the table. If you have a balance, now is the time to buy those extra pairs of prescription glasses, stock up on high-end sunblock, or schedule that last-minute dental cleaning. Think of it as a pre-paid Christmas gift to your health.
3. The Hard Deadline Trio: RMDs, Roth Conversions, and Gifts
There are three moves that have zero “grace periods.” Once the ball drops, the window for 2025 slams shut.
- Required Minimum Distributions (RMDs): If you are 73 or older, or have an Inherited IRA, you must take your RMD by December 31st. The penalty for missing it is a staggering 25% of the amount you should have withdrawn. Check those accounts twice!
- Roth Conversions: If you’re looking to convert traditional IRA funds into a Roth IRA to lock in current tax rates, the paperwork must be completed by December 31st to count for the 2025 tax year.
- Annual Gift Exclusion: You can give up to $19,000 per person in 2025 without triggering a gift tax return. If you’re helping children or grandchildren, make sure the checks are cashed or the transfers are initiated now.
Tony’s Final Thought for 2025
Discipline isn’t just about saying “no” to bad habits; it’s about saying “yes” to the final actions that protect your progress. By checking these items off your list now, you can head into Christmas morning knowing your financial house is in perfect order.
Actionable Step: Spend 15 minutes today reviewing your FSA balance and your 401(k) and 403(b) totals. It’s the best “gift” you’ll give yourself all year.
Next Week: We move from the sprint to the blueprint. I’ll be sharing the 2026 Financial Roadmap to help you start the New Year at full speed.
