Essential Year-End Financial Checklist for Retirees: Secure Your 2025

Although people eventually retire from work, they never retire from financial and tax obligations. A year-end financial review can help things go smoother in 2025. “The Epoch Times” recommends several steps to include.

Review retirement income sources. Evaluate income sources to ensure they meet your needs. Among these are Social Security benefits, pensions, withdrawals from retirement accounts such as 401(k)s and investment income. Specifically, consider the following questions:
• Can you cover your expenses with your income streams?
• Over the past year, have your financial needs changed significantly?

Don’t miss the required minimum distribution deadline. Are you 73 or older? If so, you may be subject to the RMD. According to the IRS, the withdrawal of a specific amount from your retirement accounts is mandated every year. Despite the temptation to delay, meeting these deadlines is essential to avoid penalties. This year’s RMD typically is due on December 31. If you want to ensure that you comply, consult a tax professional or financial advisor for advice.

As noted by financial experts, evaluate your tax situation. As the year ends, you can review your financial situation and plan ahead for the next tax year. If you are a retiree, you have several options for minimizing your tax burden:
• Plan your withdrawals wisely. Depending on your tax bracket, strategically withdraw from your retirement accounts to minimize your tax burden.
• Monitor mutual fund capital gains. Be aware of potential capital gains distributions from mutual funds and choose the right time to buy them.
• Maximize medical deductions. To reduce taxable income, consider itemizing medical expenses, such as prescription drugs, Medicare premiums and copays.
• Consider tax-loss or gain harvesting. Selling underperforming investments can reduce taxable income or offset capital gains.
• Strategic charitable giving. To meet RMDs and receive a tax benefit, utilize Qualified Charitable Distributions.
• Leverage Roth conversions. Transferring funds from a traditional IRA to a Roth IRA may reduce your future tax burden.
• Develop a cash-flow strategy. By carefully planning withdrawals to maximize tax efficiency, you can maintain a comfortable retirement lifestyle.

Review your spending and budget. Retirement often comes with unpredictable expenses, such as home improvements or medical costs. As such, to be financially prepared, you should review your spending habits from the past year; identify areas where you can reduce spending or reallocate resources; and ensure that your emergency fund is adequate (typically three to six months’ essentials). Ultimately, keeping spending in line with income will ensure you remain financially solvent.

“In addition to being a task list, a year-end financial checklist ensures that your retirement years will be financially secure and stress-free,” the story said. “A proactive approach to reviewing your income, taxes, spending, investments and estate plans will give you confidence and clarity going into the new year.”

–Alan Goforth | Metro Voice