Year-End Financial Planning Checklist for Families

The last quarter of the year is when a lot of financial deadlines land at once. Open enrollment, school expenses, holiday spending and tax planning all compete for the same few weeks. A short, organized checklist can help your family see where things stand before December 31 and what may be worth a conversation with your advisor, CPA or attorney.

Use the list below as a starting point. Every family's situation is different, so not every item will apply to you.

1. Review your household cash flow and budget

• Compare what you planned to spend this year with what you actually spent. Note any categories that ran higher than expected.
• Look ahead at the holiday season and early January, when travel, gifts and annual bills often arrive together.
• Confirm that your emergency reserve still matches your household's expenses and any changes in income, such as a new job, a job loss or a new baby.

2. Check your retirement account contributions

• Review how much you have contributed to workplace plans and IRAs so far this year. Annual limits are set by the IRS and can change from year to year, so confirm the current figures.
• If your employer offers a match, check whether you are on track to receive all of it. Payroll changes often need to be submitted well before the last pay period of the year.
• If you are age 73 or older, or you inherited a retirement account, find out whether a required minimum distribution applies to you this year and when it is due.

3. Look at your tax picture early

• Estimate your income for the year and compare it with last year. Bonuses, stock compensation, business income or a change in filing status can all shift your situation.
• Ask your CPA whether any year-end moves, such as timing of charitable gifts, realizing gains or losses, or Roth conversions, may fit your circumstances. Each of these can involve trade-offs, and the right answer depends on your full tax picture.
• Gather documents you may need for filing, such as records of charitable donations, medical expenses, childcare costs and education expenses.

4. Use benefits that may expire on December 31

• Check your flexible spending account balance. Depending on your employer's plan, unused funds may be forfeited or only partly carried over.
• If you have a health savings account, review your contributions for the year and whether you are using it the way you intended.
• Review open enrollment choices for health, dental, vision, disability and life coverage, and confirm that your dependents and beneficiaries are listed correctly.

5. Revisit education savings and gifting

• If you save for a child's education, review your account balances, your contribution pace and how close the expenses are.
• If you plan to give money to children, grandchildren or charities, ask your advisor and CPA how the gift may be treated for tax purposes and whether annual gift limits apply.
• Consider whether a gift of cash or of another asset better fits your goals. The tax treatment can differ.

6. Review your insurance coverage

• Look at life, disability, home, auto, umbrella and long-term care coverage. Ask whether the amounts still reflect your family's size, income, debts and responsibilities.
• Note any major life events from the past year, such as a marriage, a new child, a home purchase, a move or a business change, that may call for a coverage update.
• Confirm that the people named as policy beneficiaries are the people you want named today.

7. Update your estate planning documents

• Find your will, trust, powers of attorney and health care directives, and check the dates. Documents that are several years old, or that predate a major life change, may be worth a review with your attorney.
• Check the beneficiary designations on retirement accounts, life insurance and other accounts. These often override what a will says, so they should match your wishes.
• Make sure a trusted person knows where your important documents are stored and how to reach your professional team.

8. Look at your investment accounts and overall plan

• Review whether your accounts still line up with your goals, time horizon and comfort with risk. Investing involves risk, including the possible loss of principal.
• Check whether your account titling, beneficiaries and contact information are current with each custodian.
• Write down any changes to your goals for next year, such as a planned retirement date, a large purchase or a change in work, so your plan can reflect them.

9. If you own a business, add these items

• Talk with your CPA about year-end timing for income, expenses, equipment purchases and retirement plan contributions.
• Review how your business plan and your personal plan fit together, including compensation, ownership and any future transition.
• Check that business insurance, buy-sell agreements and key legal documents are current.

10. Schedule your year-end planning meeting

Many of the items above work best when your financial planner, CPA and attorney are looking at the same information. Try to schedule conversations in early to mid November, which leaves time to act before the holidays and before year-end deadlines.

A simple way to use this checklist

Print it, mark the items that apply to your family, and bring the list to your next meeting. Even a few notes on what has changed this year can help focus the conversation on what matters most to you.

If you would like help working through your own year-end review, you can book time with our team. To learn more about how we approach planning for families, visit our Financial Planning page, or read about our Tax Planning, Estate Planning and Insurance Planning services.

This article is for general educational purposes only and is not tax, legal or investment advice. Tax rules and limits change, and the right steps depend on your individual circumstances. Please consult your own tax and legal professionals before acting.