Summary of Stay on Track to FIRE With These Money Moves Before 2026

Overview of Stay on Track to FIRE With These Money Moves Before 2026

This BiggerPockets Money episode (hosts Mindy Jensen and Scott Trench) lays out 20 practical, time-sensitive financial moves to make before December 31, 2025 (or by other stated deadlines) to avoid leaving money on the table and to strengthen progress toward FIRE (financial independence / retire early). The hosts explain why each move matters, provide tactical tips, and share resources (checklist PDF, a 31-day DIY planning email challenge, and helpful websites).

The 20 year‑end money moves (concise summary)

1. Max out tax‑advantaged workplace accounts by Dec 31, 2025

   • 401(k), 403(b), 457, HSA contributions must be made by year end (solo 401(k) may differ).

2. Spend remaining FSA dollars

   • FSA is generally “use it or lose it” by year end; check employer rollover/extension. See fsafeds.gov for eligible items.

3. Harvest tax losses (or gains)

   • Sell losses to offset gains or up to ~$3,000 ordinary income. Consider tax‑gain harvesting if in 0% capital gains bracket. Avoid wash‑sale rule (no repurchase of the same/substantially identical security within 61 days).

4. Make year‑end charitable donations

   • Donate cash or appreciated stock; consider donor‑advised funds to bunch deductions.

5. Check withholding / estimated taxes

   • Adjust employer withholding or make/adjust estimated payments to avoid surprise refund/penalty. Aim to intentionally choose your tax outcome.

6. Review and rebalance your investment portfolio

   • Re-align to your investment philosophy, check allocation drift and concentration, and use tax‑efficient placement (bonds in tax‑deferred, stocks in taxable). Rebalance on a random day rather than exactly year‑end.

7. Make Q4 estimated tax payment if needed

   • Especially critical for self‑employed, high-dividend/interest earners, or those with large capital gains. Consult a CPA to avoid penalties.

8. Clean up spending and create a fresh 2026 budget

   • Review 2025 spending, cancel unused subscriptions, tune housing/food/transport budgets, set saving/investing targets. (Free 31‑day DIY challenge offered.)

9. Check your credit report

   • Use annualcreditreport.com (free weekly access) to monitor errors and fraud across the three bureaus.

10. Use remaining insurance benefits (deductible hit)

    • Schedule dental, vision, or medical appointments if you’ve met your deductible; get services before deductibles reset.

11. Revisit your financial goals

    • Review what worked/what didn’t in 2025; set targets and project income/spending for 2026.

12. Prepay deductible expenses if you itemize

    • Bunch deductions: prepay property tax, January mortgage interest, or medical expenses (if medical >7.5% AGI) to increase deductions for 2025.

13. Consider a Roth conversion

    • If you had a low‑income year or are in a low tax bracket, converting traditional IRA funds to a Roth may be tax‑efficient. Model it carefully.

14. Check employer match timing

    • Some matches are per pay period vs. annual. Timing contributions to capture full employer match is essential.

15. Make 529 plan contributions

    • Many states give state tax deductions for 2025 contributions made by year end; jumpstart compounding and gift strategies for education.

16. Verify beneficiaries and estate documents

    • Confirm beneficiaries on retirement accounts, life insurance, HSAs, 529s. Beneficiary designations override wills. Update POA, wills, and trusts.

17. Maximize mega‑backdoor Roth opportunities

    • If your 401(k) allows after‑tax contributions, push year‑end dollars into after‑tax bucket and convert to Roth if plan rules permit.

18. Use the annual gift tax exclusion

    • 2025 exclusion: up to $19,000 per recipient tax‑free. Useful for gifting, funding 529s, or shifting wealth out of estate.

19. Review subscriptions, auto‑renewals, annual charges

    • Cancel unused services or switch to monthly; prevent surprise annual charges in 2026.

20. Check and shop insurance coverages

    • Raise deductibles where appropriate, shop for better home/auto/umbrella quotes, and update business insurance if income changed.

Quick action checklist (priority items to do this week)

• Confirm and make any outstanding 401(k)/403(b)/457/HSA contributions by Dec 31.
• Spend FSA dollars or confirm employer rollover options.
• Make Q4 estimated tax payment (if applicable).
• Check beneficiary designations and update if needed.
• Download the free 20‑move checklist PDF at biggerpocketsmoney.com/resources.
• Pull credit reports at annualcreditreport.com and scan for problems.
• Review employer match timing and adjust 401(k) contributions to capture full match.
• Cancel unused subscriptions / annual renewals.

Key deadlines, rules & numbers to note

• Employer retirement & HSA contributions deadline: Dec 31, 2025 (traditional/Roth IRA contributions: until tax filing day / April 15, or later with extensions).
• FSA: typically use by Dec 31 unless employer offers grace/rollover.
• Wash‑sale rule: 61‑day window around sale to claim a loss.
• Capital loss ordinary income offset: up to ~$3,000 per year.
• Gift tax annual exclusion (2025): $19,000 per recipient.
• Medical deduction threshold cited: 7.5% of AGI for itemized medical expenses.
• Credit reports: free weekly access via annualcreditreport.com.

Resources mentioned

• BiggerPockets Money 31‑Day DIY Financial Planning Challenge: biggerpocketsmoney.com/31DAYS
• Free 20‑move checklist PDF and resource library: biggerpocketsmoney.com/resources
• FSA eligible expense list: fsafeds.gov
• Free credit reports: annualcreditreport.com

Notable tips and takeaways

• Many year‑end moves are cheap/time‑efficient (checking beneficiaries, credit reports, subscription cleanups) yet high impact.
• Know employer plan rules — match timing and after‑tax 401(k) features can materially affect outcomes.
• Tax planning is year‑specific: low‑income years can be ideal for Roth conversions or realizing gains.
• Be intentional about withholding and estimated payments — decide whether you prefer a refund or to owe a small amount.
• Annual shopping for insurance and raising deductibles thoughtfully are simple ways to reduce ongoing costs.

If you want the ready‑made checklist and email challenge they referenced, the hosts provided direct links in the episode resources.