A practical checklist to refresh your retirement plan, reduce surprises, and stay on track for the year ahead.

By the Financial Services Team | Updated for the new year

A new year is a natural checkpoint for your IRA. A few simple updates now – contributions, investments, taxes, and account details – can make the rest of the year smoother and help you avoid common (and costly) mistakes later.

Use this 12-point checklist to confirm you are funding the right account, investing appropriately, minimizing taxes, and keeping your IRA paperwork and security in good shape.

Quick note: This article is for general educational purposes and is not tax, legal, or investment advice. Rules and eligibility can vary by income, filing status, and employer plans. Consider consulting a qualified professional for guidance.

 

1. Confirm which IRA(s) to prioritize

Before you contribute, decide where new dollars should go. The right choice depends on your tax situation and goals.

In general, Roth IRAs favor tax-free growth later, while Traditional IRAs may provide a deduction now if you qualify. SEP and SIMPLE IRAs are common for self-employed individuals and small businesses, with different rules and limits.

• Write down your primary goal for the year (tax deduction now, tax-free growth later, or simplicity).
• If you are unsure, compare Roth vs. Traditional with a tax professional before funding the account.

 

Tip: Your IRA choice is less about predictions and more about aligning the account type to your goals and current tax picture.

2. Check the current-year contribution and income rules

IRA contribution limits and income thresholds can change. Eligibility can also depend on filing status and whether a workplace retirement plan covers you (or your spouse).

• Look up the current-year IRA contribution limit and catch-up rules (if age 50+).
• Confirm any Roth IRA income limits and any Traditional IRA deduction phase-outs that apply to you.

 

Tip: Build your plan around confirmed numbers, not memory.

3. Set up automatic contributions

Automation beats motivation. A monthly automatic contribution can help you stay consistent and reduce the temptation to delay.

• Pick a monthly amount that fits your budget.
• Schedule contributions shortly after payday.
• If income is uneven, automate a baseline amount and add occasional lump sums.

 

Tip: You do not need to max out an IRA to benefit—consistency matters.

4. See whether you can still make a prior-year contribution

Early in the new year, you may still be able to contribute for the prior tax year (subject to IRS rules and deadlines). This is a common planning move that many people forget.

• Ask: Have I fully funded my IRA for last year?
• If not, confirm whether you are eligible to make a prior-year contribution before the deadline.

 

Tip: When you contribute, ensure your custodian codes it to the correct tax year.

5. Rebalance back to your target allocation

Over time, market movement can shift your portfolio away from your intended risk level. Rebalancing helps bring your mix back to target.

• Choose (or revisit) a target mix (for example, 80/20, 70/30, or 60/40) based on your timeline and risk tolerance.
• Compare your current allocation to your target and rebalance as needed.

 

Tip: If you do not have a written target allocation, start with a simple one and revisit annually.

6. Review fees and simplify investments

Fees quietly reduce long-term returns. The new year is a great time to run a quick fee and fund audit.

• Check each fund’s expense ratio.
• Look for account maintenance, advisory, or trading fees.
• Consider simplifying into broadly diversified, low-cost funds if appropriate.

 

Tip: If you cannot explain what you own in one sentence, it may be too complicated.

7. Update beneficiaries

Your IRA beneficiary designation generally controls who receives the account – even more than your will. Outdated beneficiary forms can cause major problems.

• Confirm primary and contingent beneficiaries.
• Update after life changes (marriage, divorce, birth, death).
• Save a copy of the confirmation with your estate documents.

 

Tip: This is one of the highest-impact updates you can make in under 10 minutes.

8. Plan your tax strategy for the year

The start of the year gives you time to plan, rather than scrambling in December. A simple tax strategy can include evaluating deductions, Roth contributions, or potential Roth conversions.

• Estimate your income for the year and identify your likely tax bracket.
• If you are considering Roth conversions, decide when you will reevaluate (mid-year is common).

 

Tip: Many conversion decisions are easier with a mid-year and year-end check-in.

9. If using a backdoor Roth, map the steps carefully

Backdoor Roth strategies can help some higher earners contribute to a Roth, but the process is paperwork-intensive. It can be affected by other pre-tax IRA balances (the pro rata rule).

• Confirm whether you have existing pre-tax IRA balances that could complicate the strategy.
• Coordinate with your tax professional before executing the steps.
• Keep clear records for tax filing.

 

Tip: A clean process is more important than a fast process.

10. Confirm required minimum distribution (RMD) obligations

If you are subject to required minimum distributions, missing one can lead to penalties. Inherited IRAs may also have unique distribution requirements.

• If RMDs apply to you, confirm the amount and timing early in the year.
• If you inherited an IRA, review the distribution rules that apply to your situation.

 

Tip: When in doubt, confirm with your IRA custodian and your tax advisor.

11. Do an IRA security and account-hygiene check

Retirement accounts are valuable targets. A few security updates reduce risk and prevent headaches later.

• Enable multi-factor authentication (MFA).
• Update passwords (use a password manager if possible).
• Confirm your address, phone, email, and linked bank accounts are current.

 

Tip: Security is a financial decision, not just an IT decision.

12. Write a one-page IRA plan for the year

Most people hope to manage their retirement savings. A one-page plan makes it concrete and easier to follow.

• Set your contribution goal (monthly plus any expected lump sum).
• Write your target allocation and when you will rebalance.
• Add key dates: a mid-year check-in and a year-end review.

 

Tip: A simple written plan often beats a complex plan you never follow.

Quick-start January game plan

If you want a simple structure without overthinking it, use this four-week cadence:

• Week 1: Confirm IRA type and set a realistic contribution target.
• Week 2: Set automatic contributions and check whether a prior-year contribution is needed.
• Week 3: Rebalance and review investments and fees.
• Week 4: Update beneficiaries, confirm security settings, and schedule a tax strategy check-in.

 

Need help tailoring this checklist to your situation?

A financial professional can help you choose between Roth and Traditional contributions, coordinate IRA decisions with your tax plan, and build an investment mix that fits your timeline. If you would like a second set of eyes on your IRA plan for the year, contact our team to schedule a review.

Disclosure

This material is provided for general information and educational purposes only and does not constitute investment, tax, or legal advice. Investing involves risk, including the possible loss of principal. Consult your professional advisors regarding your specific situation.