5 Last-Minute Financial Moves Before December 31

Retirement Financial Planning Tips for Monmouth County Residents

As the year comes to a close, the final weeks before December 31 offer a critical opportunity to make smart financial decisions that can positively impact your retirement. Whether you’re already retired or approaching retirement, a few strategic moves now can help reduce taxes, strengthen your income plan, and set you up for a more confident year ahead.

At Retirement Solutions NJ, we work with individuals and families throughout Monmouth County to ensure year-end decisions align with long-term retirement goals. Here are five last-minute financial moves you should consider before the calendar turns.

1. Review and Complete Required Minimum Distributions (RMDs)

If you’re age 73 or older (or subject to earlier RMD rules), December 31 is the deadline to take your required minimum distributions from traditional IRAs and certain retirement accounts.

Failing to take your RMD — or taking too little — can result in significant IRS penalties.

Before year-end, make sure to:

• Confirm which accounts require distributions

• Verify the correct distribution amount

• Coordinate withdrawals to avoid unnecessary tax withholding

• Consider whether your RMD should be reinvested, used for income, or allocated strategically

For Monmouth County retirees, RMD planning is especially important when coordinating retirement income with Social Security and other taxable sources.

2. Make Final Retirement Account Contributions

Even if you’re close to retirement, contributions may still be available depending on your situation.

Before December 31, review:

• 401(k) contributions through your employer

• Catch-up contributions if you’re age 50 or older

• Roth IRA eligibility based on income

• Spousal IRA opportunities

Strategic contributions can help reduce taxable income while strengthening long-term retirement savings. A retirement financial planner can help determine whether pre-tax or Roth contributions make the most sense for your tax bracket and future income needs.

3. Use Tax-Smart Charitable Giving Strategies

The end of the year is a natural time for charitable giving — and when done strategically, it can also reduce taxes in retirement.

Popular year-end strategies include:

• Qualified Charitable Distributions (QCDs) from IRAs for those age 70½ or older

• Donating appreciated securities instead of cash

• Bunching charitable donations into one tax year to exceed the standard deduction

For retirees in Monmouth County who are managing IRA withdrawals, charitable strategies can help lower taxable income while supporting causes that matter most.

4. Review Your Investment Allocation and Risk Exposure

Market fluctuations throughout the year can shift your portfolio away from its intended allocation. December is an ideal time to review your investment mix and make adjustments before the new year.

Key questions to ask:

• Is your portfolio aligned with your current retirement timeline?

• Has your risk tolerance changed since retiring or nearing retirement?

• Are you overly exposed to market volatility?

• Do you have sufficient liquidity for income needs?

A year-end portfolio review can help ensure your investments are positioned to support both income and growth in retirement — without unnecessary risk.

5. Schedule a Year-End Retirement Planning Review

One of the most valuable last-minute moves before December 31 is simply sitting down with a retirement financial planner to review your overall plan.

A comprehensive year-end review may include:

• Retirement income projections

• Tax planning strategies

• Social Security timing considerations

• Healthcare and Medicare cost planning

• Estate and beneficiary reviews

For residents of Monmouth County, working with a local retirement planning firm means your plan reflects not just federal rules, but also New Jersey-specific considerations that can impact your long-term financial success.

Don’t Wait Until January to Get Started

Once the calendar flips, many tax-saving opportunities disappear. Taking action before December 31 can help you:

• Reduce your tax burden

• Strengthen your retirement income plan

• Enter the new year with clarity and confidence

At Retirement Solutions NJ, we specialize in retirement financial planning for individuals and families in Monmouth County. Our goal is to help you make informed, timely decisions that support the retirement lifestyle you’ve worked hard to build.