5 Tax Bill-Saving Financial Tasks to Wrap Up Before the Holidays
Between Thanksgiving and New Year’s, inboxes go quiet (hopefully). Offices close. Time blurs into one long stretch of holiday gatherings and auto-replies. But while the outside world may hit pause, your financial deadlines keep marching forward.
If you're a law partner or self-employed professional, the last six weeks of the year often carry more weight than any other time — especially if you’re looking to optimize taxes, cash flow, or long-term savings.
Here’s why we encourage clients to wrap up key financial tasks before mid-December and what to prioritize before year-end.
1. Max Out Your 401(k)
If you’re contributing to a workplace retirement plan, now is the time to double-check how close you are to the 2024 limit:
Employee contribution limit (under 50): $23,000
Catch-up contribution (50+): Additional $7,500
For law firm partners or business owners using solo 401(k)s, there's additional complexity to employer contributions and plan deadlines. These tasks need to be coordinated early, especially if you're making contributions manually rather than through payroll.
Action Step: Review your year-to-date contributions and update your final pay periods to make sure you hit your goals.
2. Charitable Giving: Earlier is Better
Technically, the deadline for charitable contributions is December 31. However, if you’re using more sophisticated strategies like donating appreciated stock or contributing to a donor-advised fund, the real deadline is much earlier. Thanksgiving is ideal, but early in December can work.
That’s because financial custodians (Fidelity, Schwab, Vanguard, etc.) are flooded with requests in December, and processing delays can cause gifts to miss the year-end cutoff. So you could lose the deduction, even if you had the best intentions.
Action Step: If you plan to give, do it early. And if you’re still exploring your options, read our guide on smart giving before year-end.
3. Consider Tax-Loss Harvesting
If you’ve sold investments at a gain this year or you’re expecting a large distribution, now is the time to review your portfolio for potential losses you can realize before year-end. Selling investments that are down (while staying aligned with your overall strategy) can offset taxable gains and potentially reduce your 2024 tax bill.
Action Step: Ask your advisor to scan for tax-loss harvesting opportunities before the market closes for the year.
4. Backdoor Roth Conversion Timing
For high earners, the backdoor Roth IRA can be a powerful tax-free growth tool. However, it only works if done correctly and in the right calendar year.
Whether you’re considering your first conversion or completing the final step of one you started earlier in the year, December is the final window to make it count.
Action Step: Confirm whether you’ve completed both the traditional IRA contribution and the Roth conversion step before year-end.
5. Check In on Estimated Taxes
If you’re self-employed, a law partner receiving K-1 income, or have received a sizable bonus or RSU vest, your Q4 estimated tax payment is due January 15, 2025. That deadline sneaks up quickly.
Reviewing your income projections and estimated payments now can help you avoid underpayment penalties or overpaying when cash flow might already be tight around the holidays.
Action Step: Talk with your tax advisor before year-end to make sure your payments are on track.
This Year, Give Yourself the Gift of Not Scrambling
When you’re running a business or managing a demanding career, year-end can already feel chaotic. That’s why we encourage clients to wrap up their key financial tasks before the holidays hit full swing.
Not only does it reduce stress and uncertainty, it gives you the freedom to enjoy your holidays knowing you’ve already taken care of your future self.
Need help sorting through your year-end to-dos? We’d be happy to help you review your plan and take the next smart step before December 15.
