3 Money Moves You Absolutely Have to Make Before the End of the Year

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Before 2023 ends, it’s important to invest as much as possible in retirement accounts and take a few other key steps. Read on to find out what those steps are. 

In 2022, around 73% of adults indicated they were doing at least OK financially. While this may sound pretty good, it’s 5 percentage points lower from 2021, and doing simply OK isn’t an ideal situation.

Now, you may or may not be happy with the money in your bank account and where you currently stand financially. But, regardless of whether you want to make many changes in 2024 or stick with the status quo, there are three crucial tasks to check off your to-do list before this year ends.

Here’s what they are.

1. Make your retirement account contributions

In 2023, you’re allowed to contribute up to $6,500 to an IRA and an additional $1,000 catch-up contribution if you’re over 50 years old. If you have a workplace 401(k), you can contribute as much as $22,500 and an additional $6,500 in catch-up contributions.

If you haven’t started depositing a portion of your paycheck into a retirement account with your employer or at a brokerage firm, it’s time to get serious about doing so. If you’ve started investing but haven’t hit contribution limits yet, now’s the time.

The good news is, if you are investing in an IRA, you have until the end of the tax year, which is the April tax-filing deadline (April 15, 2024) so you still have a little time to get your money invested. If you’re making 401(k) contributions, though, you only have until the end of the calendar year to make 2023 contributions, so you’ll need to act quickly to invest as much as you can.

To invest in your 401(k), talk with HR or your plan administration about getting set up. If you’re looking to invest in an IRA, open one online today with one of the best IRA brokers. It takes just a few minutes to complete the paperwork to open your account and set up an automatic bank transfer.

Ideally, you’ll hit your contribution goals and invest the maximum allowable amount, but many people can’t do that. Even if you invest a little bit, though, it can go a long way toward growing your balance over time.

2. Use up your FSA funds

If you have a flexible spending account (FSA) at work, you usually have to use the money by the end of the year or within the first few months of the next one. FSAs allow you to contribute with money you haven’t paid taxes on and use it to cover qualifying medical expenses — which is a great deal if you use the money.

If you have a lot of funds in your FSA account, use it up before you lose the funds for good. There are many things you can spend the money on including:

DeductiblesCopaysPrescriptionsOver-the-counter medicationsMedical equipment such as bandaids

See about scheduling some end-of-the-year checkups, filling a few prescriptions early, or just picking up some cold medicines to use up your FSA money before it’s lost for good.

3. Participate in open enrollment

If you buy insurance coverage on a federal or state health insurance marketplace, your open enrollment period spans Nov. 1 through Jan. 15. If you get insurance through an employer, chances are good you’ll also have open enrollment around this time of year.

Open enrollment is your chance to shop for health insurance. Read about the different plans available to you, including which doctors are in network, and what your deductibles, premiums, and copay will be, and make sure you have the right coverage.

By checking these three things off your to-do list by year’s end, you can make sure you’re in great shape to move forward into 2024 in a way that sets you up for success.

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