3 2025 Retirement Moves You Must Make Before the End of the Year

You've probably got a lot on your mind right now with the holidays just around the corner. You might even be looking ahead to 2026 and what you want to accomplish next year. But it's important to make some time for end-of-year retirement moves, too.

If you were thinking about doing any of the following three things in 2025, you only have until Dec. 31. Act quickly so you can get back to focusing on the exciting parts of the next few months.

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1. Make 401(k) contributions

You're only allowed to make 2025 401(k) contributions until the end of the year. This is different from IRAs, which allow you to make contributions until the tax deadline. That's April 15, 2026, for the 2025 tax year.

If you have a little extra cash you want to set aside or you haven't gotten your entire 401(k) match for the year, make this a priority now. You may have an online account where you can change how much you have withheld from each paycheck. Or you might need to speak to your HR department to update this.

The annual contribution limit probably won't be an issue for you, but if you're a high earner, you'll want to watch out for this as well. You can save up to $23,500 in a 401(k) this year if you're under 50. If you're 50 to 59 or 64 or older, you can save up to $31,000. And those aged 60 to 63 by the end of the year may save up to $34,750. These limits may increase for 2026.

2. Make a Roth IRA conversion

Roth IRA conversions usually happen toward the end of the year, because by then, you have a pretty good idea of what tax bracket you'll fall into. Often, people convert just enough to take them to the top of their bracket. This means that large conversions are often split in batches over several years.

You don't have to do your conversion now if you're not ready or if you don't think you could handle the extra taxes you'd pay on the converted amount this year. But if you hope to tap into your converted funds in a few years, you're better off doing the conversion now.

Roth IRAs let you withdraw your contributions tax- and penalty-free at any age. But there's a five-year rule for converted funds. Basically, if you want these withdrawals to be penalty-free, you must wait five years from the year of the conversion before you touch the money.

The five-year clock always begins on Jan. 1. This is true even if you wait until Dec. 31 to do the conversion. By waiting until the end of the year, you effectively shorten the window you have to wait before you can withdraw your converted funds without penalty.

3. Take required minimum distributions (RMDs) if you have to

If you're 73 or older, you may have to take required minimum distributions (RMDs) from at least some of your retirement accounts. These are annual withdrawals the government makes you take to get its cut of your savings.

You don't have to take RMDs from Roth accounts, or from your current workplace retirement plan if you're still working and own less than 5% of the company. But you may still have to take RMDs from your old workplace retirement plans and any traditional IRAs you have.

You can calculate yours by dividing your retirement account balance as of Dec. 31, 2024, by the distribution period next to your age in the IRS' Uniform Lifetime Table. This is the amount you must withdraw by the end of the year to avoid a 25% tax penalty on your untaken RMD.

Technically, you have until April 1, 2026, to take your first RMD if you turned 73 this year. If that's not the case, you only have until Dec. 31, 2025, to take yours. But it's usually best not to wait until the last minute. Aim to complete your RMDs soon, so you can put them behind you for the year, and maybe put that money toward holiday expenses if you don't need it for your bills.

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