Major money moves to make before the end of the year

Let’s face it, 2023 hasn’t been the easiest year financially. While inflation is finally starting to ease up, a large number of Americans are still stressed about their personal finances — almost 75% of them in fact, according to the latest CNBC Your Money Survey.

If your finances are a concern, add these tasks to your end-of-year checklist. The relatively quiet week between Christmas and New Year’s is an especially good time to take care of the things you’ve been putting off.

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1. Check your financial statements

How long has it been since you logged into your bank accounts and really looked at the activity? With direct deposit and automatic bill pay, it can be easy to ignore your bank statements unless something comes up. Before the ball drops in Times Square, take some time to analyze your statements and spending — you may even spot some recurring subscriptions you forgot about and should cancel. Remember when you signed up for a free Audible trial or Apple TV just to watch Ted Lasso? It's time to cut them off.

2. Spend your Flexible Spending Account (FSA) money

If you signed up for an FSA (which are only offered through employers), make sure you spend the account balance by Dec. 31 because the money is forfeited by the end of the year. This type of account lets you set aside pre-tax dollars for certain medical expenses such as deductibles, co-payments, medicine, prescription glasses and more.

However, you can spend your FSA money on a variety of surprising health-adjacent products, such as beauty supplies (acne treatments and face lotion with SPF, for example), alternative medicines such as acupuncture and chiropractor visits, and even ancestry kits like 23andMe. Check out eligible items at the FSA Store or Amazon’s FSA section.

Note: Don’t confuse an FSA with an HSA, or Health Savings Account. An HSA also allows pre-tax dollars to be used for medical expenses, but any leftover HSA money will automatically roll over into the next year. There’s no need to go on a spending spree with your HSA.

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3. Donate to charity

If you’ve been intending to donate, don’t wait much longer. Any donation you make to a nonprofit — make sure it’s a 501(c)(3) — can count as an itemized deduction when it’s time to do your 2023 taxes.

4. Contribute to your 401(k) or Roth 401(k)

Try to give close to the maximum amount allowed to your employer-sponsored 401(k) or Roth 401(k) by Dec. 31 — especially if there’s a company match. For 2023, the maximum is $22,500 for most people and $30,000 for those age 50 and up. The move is a boon for your retirement, and, in the case of the regular 401(k), lowers your taxable income for 2023.

5. Take the required minimum distribution (RMD)

An RMD is the amount that must be withdrawn every year from your tax-deferred retirement accounts, such as a 401(k) or traditional IRA. Last year, Congress raised the age at which you’re required to begin taking out RMDs. As of 2023, that age is 73. You have to start withdrawing RMDs by April 1 the year after you turn 73, and subsequent RMDs must be withdrawn by Dec. 31. If not, you could get hit with a 25% penalty on the part of your RMD that you didn’t withdraw.

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6. Contribute to a 529

If you’re using a 529 college savings plan (or contributing to one for someone else), it’s not eligible for a deduction on your federal taxes, but you may be eligible for a deduction depending on which state you live in. These accounts grow tax-free if used for educational expenses.

7. Check your credit — for free

By law, you’re allowed a free annual credit report from one of the three consumer credit bureaus (Experian, TransUnion and Equifax) once every 12 months. This doesn’t have to wait to the end of the year, but if you haven’t done it yet, now’s a great time. Go to AnnualCreditReport.com to download your reports.

Check if there’s anything on the reports that you don’t recognize. If you see any errors, act quickly to dispute them. Errors could negatively affect your credit score and hinder your ability to get loans or a favorable interest rate.

Taking some or all of these actions should put you in a better financial position heading into 2024.