October isn’t just another month on the calendar — it’s decision time for your 2026 financial future.
Many Northern Virginia professionals and government employees come into the fourth quarter believing they have plenty of time to manage their year-end financial planning. Unfortunately, this isn’t always the case.
Beginning the planning process now allows you to intentionally create and implement a strategy for tax savings, retirement contributions, and investment strategies. However, waiting until the last minute to develop a plan for the new year can mean missed critical deadlines, missed tax savings, and missed growth opportunities.
This year, the financial stakes are even higher than usual. The One Big Beautiful Bill Act (OBBBA) has rewritten the tax playbook for 2025. Some changes work in your favor, others don’t, and all of them require you to think differently about your money strategy. If you’re still operating under old financial assumptions, you may get left behind.
The bottom line: Every day you wait could cost you money and limit your financial choices. The most important thing is to start now and focus on what you can control. Here are six areas to consider when developing your year-end financial moves this October.
1. Review and Update Your Financial Plan
Year-end is the natural point to stop, zoom out, and look at the bigger picture. Creating a financial plan isn’t a one-and-done exercise. Your budget, savings rate, insurance, and investments need to adapt as your life changes.
Think about the last year. Did you change jobs, buy a home, welcome a child, get married, or face new health expenses? Each of these shifts can affect your cash flow, your tax situation, and your long-term savings trajectory.
The OBBBA only amplifies the need for review. With the standard deduction permanently higher ($15,750 for single filers and $31,500 for joint filers in 2025), many families who used to itemize may no longer see the same tax benefit from mortgage interest, charitable gifts, or medical costs. That change ripples across your financial plan. If you’ve been counting on deductions that no longer apply, your budget and savings assumptions need to reflect the new reality.
A year-end plan review also helps you confirm that you’re on track toward longer-term goals. Do your current spending and saving patterns support your target retirement age? Are you still allocating enough for college planning if that’s on the horizon? Running the numbers now gives you the chance to make adjustments while there’s still time in 2025 to course-correct.
2. Maximize Retirement Contributions
One of the most effective year-end moves is also one of the simplest: maximize your retirement contributions.
For 2025, contribution limits are:
- 401(k), 403(b), and TSP: $23,500 (under 50) and $31,000 (age 50+ with catch-up).
- Traditional and Roth IRAs: $7,000 (under 50) and $8,000 (age 50+).
Employer matches make this especially powerful. If you haven’t hit the threshold to receive your full match, consider increasing your contributions for the last few pay periods of the year. That extra push can mean a boost in long-term growth.
For federal employees, the Thrift Savings Plan (TSP) remains one of the best vehicles for building wealth while you’re employed with the Federal Government. However, with OBBBA’s permanent brackets in place, Roth vs. traditional contributions require a closer look. And remember, permanent is never truly permanent when it comes to legislation. Permanent simply means there is not currently a set future date for a change.
If you expect a higher income later or want to diversify your future tax picture, using the Roth TSP (or Roth 401(k) for our non-Federal Employee readers) option could be a smart move. The biggest mistake I often see is waiting. Every dollar you contribute in October, November, or December has the benefit of starting its compounding journey now, not months from now.
3. Smart Moves for High Net Worth Investors
If you’re a high earner or managing significant assets, some year-end financial moves in 2025 offer unique opportunities to manage both taxes and investments.
Tax-loss harvesting can make a significant impact. If you hold investments in taxable accounts that are down in 2025, selling at a loss allows you to offset gains elsewhere. Those losses can also offset up to $3,000 of ordinary income each year ($1,500 if married filing separately), with any unused losses carrying forward.
Charitable giving is another area where timing matters. I always remind clients that giving purely for a tax break usually doesn’t make sense. But if you’re already charitably inclined, 2025 offers several tax-smart options:
- Donate Appreciated Securities: Giving stocks or funds that have grown in value lets you avoid capital gains tax while still receiving a charitable deduction. This can be more efficient than donating cash.
- Donor-Advised Funds (DAFs): Contribute cash or appreciated assets, receive an immediate deduction, and then recommend grants to charities over time.
- Qualified Charitable Distributions (QCDs): If you’re 70½ or older, you can direct up to $108,000 from an IRA to a qualified charity. This satisfies RMDs without raising taxable income — making QCDs one of the most tax-efficient ways to give.
- Itemizing vs. standard deduction: With the higher standard deduction in place, some households may “bunch” contributions—doubling up in 2025 to exceed the threshold and then skipping 2026.
- The Triple Power Play: If you typically itemize only because of charitable giving, consider a larger-than-usual contribution of highly-appreciated securities to a DAF in one year. That allows you to itemize and capture the deduction that year, then skip giving and use the higher standard deduction the following year. Repeat the cycle as needed to maximize both your giving and your tax benefits.
This is also the moment to think long-term. High net worth investing isn’t just about the next quarter—it’s about positioning your wealth to work efficiently across decades and possibly generations. With OBBBA making estate exemptions permanent, you can plan gifting strategies or trust structures with confidence.
4. Manage Volatility and Risk Before Year-End
Markets don’t always move in straight lines, and 2025 has been a reminder of that. National headlines, interest rate uncertainty, and global disruptions have all contributed to swings that can give pause to even seasoned investors.
That’s why volatility and risk management before December is essential. If stocks outperformed bonds in your portfolio this year, you may be carrying more risk than you realize. Rebalancing helps maintain discipline, lock in gains, and realign with your long-term goals.
Risk management also extends beyond investments. Do you have six months’ worth of expenses saved in an emergency fund? Are your insurance policies, such as life, disability, and long-term care, still the right fit for your stage of life? For federal employees and contractors in Northern Virginia, maintaining a strong cash reserve is particularly crucial due to ongoing funding debates and contract cycles. Year-end is a natural point to strengthen your safety net while adjusting your portfolio.
5. Tax Planning Opportunities Before December 31st
Tax planning doesn’t end with retirement contributions and charitable gifts. There are several other opportunities to take advantage of before year-end:
- Flexible Spending Accounts (FSAs): Use-it-or-lose-it rules mean any remaining 2025 balance may disappear if not spent by year-end. Some employers may offer the carryover of unused amounts. According to the IRS, the maximum carryover amount for 2025 is $660, making it essential for employees to understand the specific requirements of their plan.
- Health Savings Accounts (HSAs): If you’re eligible, HSA contributions for 2025 are $4,300 (individual) and $8,550 (family), with a $1,000 catch-up for those 55+. HSAs are often called triple tax-free because they deliver three distinct benefits: contributions are tax-deductible up front (above the line), investment growth is tax-free, and distributions for qualified healthcare expenses are also tax-free. Unlike FSAs, balances roll over and can be invested, making HSAs one of the most tax-efficient accounts available.
- Business owners: If you’re a small business owner in Northern Virginia, consider accelerating deductions by deferring income, prepaying expenses, or making equipment purchases before year-end. With the Qualified Business Income (QBI) deduction now permanent under OBBBA, aligning expenses and income could create significant savings.
- Withholding adjustments: Use the IRS Tax Withholding Estimator to make sure you’re on track. A small adjustment now can prevent surprises in April.
Living in a high-cost, high-tax region like Northern Virginia makes these moves even more impactful. The expansion of the SALT deduction cap to $40,000 provides relief. However, for high earners, the benefit phases down. Once modified AGI exceeds $500,000 for individuals or joint filers, the expanded deduction begins shrinking until it eventually reverts to the $10,000 cap. That makes timing income and deductions especially important in high-income years.
6. Steps Toward Financial Independence
Finally, year-end financial moves aren’t just about next April’s tax return. It’s about setting yourself on the path to long-term financial independence.
That starts with knowing where your money goes. Too often, people get lost in tracking every single transaction and end up overwhelmed. A simpler, big-picture approach works better. At Good Life Financial Advisors of NOVA, we use an ELF system approach, breaking down spending into Essentials, Lifestyle, and Fun.
- Essentials are your non-negotiables: mortgage payments, utilities, gas, groceries. These keep your household running and deserve priority in your budget.
- Lifestyle covers the day-to-day choices that add value but are adjustable—like dining out, a gym membership, or streaming services.
- Fun is the category that makes life enjoyable: travel, hobbies, subscriptions, or a night at the ballgame. Because Fun is flexible, it’s often the easiest place to scale back if needed.
The power of the ELF framework is that it gives you clarity without overcomplication. It ensures your Essentials are always covered, helps you manage Lifestyle with balance, and keeps Fun spending aligned with your bigger goals. Most importantly, it frees up room for the most critical step of all—paying yourself first. That means directing dollars into retirement accounts, an emergency fund, or other savings buckets before they disappear into discretionary spending.
Year-end is the perfect time to revisit your ELF balance. Are your Essentials under control? Is your Lifestyle creeping higher than intended? Are you still leaving enough for Fun while staying disciplined about savings? Answering these questions now helps you close 2025 with confidence and enter 2026 knowing you’re moving steadily toward financial independence.
Let’s Review Your Year-End Financial Planning Strategy
Don’t let year-end planning become a December scramble. The moves you make in the next few months can set you up for a stronger financial position heading into 2026.
At Good Life Financial Advisors of NOVA, we help Northern Virginia federal employees, government contractors, and high earners navigate these complex decisions. We focus on what you can control and create strategies that align with your goals.
Ready to tackle your year-end planning with confidence? Let’s schedule a conversation to review your strategy and identify opportunities before December 31st.
Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA. show less
