5 Financial Activities to Take Care of Before the End of the Year

Updated 11/10/26 | Wondering what end-of-year financial activities you should be prioritizing? The early winter season is a busy time for everyone, especially high-earning tech employees juggling work deadlines, holiday plans, and financial responsibilities. But it’s also the perfect opportunity to tackle key items to maximize your savings, reduce taxes, and set you up for success in the new year. 

Below, we dive into five steps to focus on before the year wraps up. 

Max Out Your 401(k) Contributions

As a high earner, maximizing your 401(k) contributions is one of the most effective ways to build wealth and lower your taxable income. For 2025, the IRS allows contributions up to $23,500. (There is a special, higher catch-up limit of $11,250 for employees aged 60 to 63 in 2025, which would bring your total possible contribution to $34,750.) If you haven’t reached this limit yet, consider increasing your contributions now.

Our take: End-of-year financial activities like this are a simple way to optimize your long-term financial health.

Many tech companies also offer generous employer matches or profit-sharing contributions. By maxing out your 401(k), you take advantage of these perks and ensure you’re making the most of your tax-advantaged retirement savings. 

Review Your Tax Bill and New Tax Laws

Tech employees often see significant income fluctuations due to bonuses, equity vesting, or stock sales. These events can result in a larger-than-expected tax bill. To avoid surprises, review your income and get a solid estimate of your tax liability before year-end. If you’re likely to owe more, consider making an additional payment to the IRS. Paying ahead can help you avoid underpayment penalties and reduce the stress of tax season.

Additionally, it can be helpful to familiarize yourself with any new tax laws or other changes. As financial advisors, we recommend our high-earning tech clients work with a tax professional to ensure all your i’s are dotted and t’s get crossed. As an end-of-year financial activity, tax planning ensures you stay ahead of IRS deadlines and penalties.

Harvest Tax Losses to Offset Gains

Did you know that end-of-year financial activities like tax-loss harvesting can significantly lower your tax burden while keeping your investment strategy on track? Many tech employees invest heavily in stocks or equity. Those gains may be taxable if you’ve sold shares at a profit this year. Review your portfolio for investments that have lost value to offset these gains. Selling them before the end of the year, a strategy called tax-loss harvesting can help reduce your taxable income.

For example, if you cashed out some of your company stock at a gain but have underperforming investments elsewhere, selling those losers can balance out your tax bill. Be mindful of IRS rules, such as the wash-sale rule, which could impact this strategy. (Pro tip: Your financial advisor is an excellent resource for asking questions about techniques such as tax-loss harvesting or direct indexing). 

Prioritize Charitable Giving

Charitable giving isn’t just a way to give back — it can also be a smart financial strategy for high earners. Donations to qualified organizations made by December 31 can be deducted from your taxable income. Making charitable giving part of your end-of-year financial activities lets you support causes you care about while optimizing your tax strategy.

Donating shares instead of cash can offer even more benefits for tech employees with appreciated stock. You avoid capital gains taxes while deducting the full market value of the stock. If you’re not ready to decide where to give, consider opening a donor-advised fund, which lets you claim a deduction this year while distributing funds later.

Collect Deductible Receipts and Use FSA Funds

Tech professionals often have busy schedules, so it’s easy to overlook smaller financial details. Start by gathering receipts for deductible expenses such as charitable donations, business-related costs, or qualified medical expenses. Keeping these organized now will save time when tax season arrives.

If your company offers a flexible spending account (FSA), make sure you use the funds before the deadline. Many FSAs operate on a “use it or lose it” basis, so schedule doctor’s appointments, purchase eligible items, or take care of other health needs before time runs out.

Final Thoughts About End-of-Year Financial Activities

For high-earning tech employees, the end of the year is a pivotal time to evaluate your financial situation. From maximizing 401(k) contributions to planning your taxes and giving back through charitable donations, focusing on these end-of-year financial activities can set you up for success in the new year.

To gain a head start on next year, here are our best tips to navigate tax season. If you’re feeling overwhelmed or need guidance, the team at Northern Lights Advisors can help you create a personalized plan tailored to your needs. Simply schedule a consultation.

Northern Lights Advisors is a fiduciary, fee-only Registered Investment Advisor (RIA) firm based in Seattle, Washington. The information in this article is not intended as tax, accounting, or legal advice. Read the full disclosure here.