A: Yes! Taking action before December 31 can make a real difference. Here are three of the most effective strategies:

🔹 Tax-Smart Health Accounts
If your employer offers them, consider contributing to a Health Savings Account (HSA) or Flexible Spending Account (FSA). Even a $2,000 HSA contribution could save over $400 in taxes. FSAs are “use it or lose it,” so spend down any remaining balance before year-end to avoid losing the funds.

🔹 Boost Retirement Contributions
Increasing contributions to a 401(k), traditional IRA, or SEP IRA can reduce your taxable income. Just note: most workplace plans have a Dec. 31 deadline. Traditional IRAs allow contributions up to April 15, 2026 for the 2025 tax year.

🔹 Special Year-End Moves
If you’re 73 or older (or inherited an IRA), don’t forget to take your Required Minimum Distributions (RMDs) by Dec. 31 to avoid penalties.
Use up remaining FSA funds if your plan doesn’t offer a grace period.
And if you expect to be in a higher tax bracket later, consider a Roth conversion before year-end—you’ll pay taxes now but enjoy tax-free growth in retirement.

Each of these can shrink your tax bill—if you act in time! A quick conversation with a tax advisor or review of your benefits can help you take advantage of what’s available to you.