Year-End IRA Checklist: 12 Things to Do Before December 31
Checklist and planning tips for traditional and Roth IRAs
Year-end is the perfect time to give your IRA a quick “health check.” A few small moves now can reduce taxes, tighten up your plan, and prevent the kind of paperwork headaches that show up at tax time.
Here’s a practical 12-step IRA checklist you can run through before December 31.
1. Confirm whether you must take a Required Minimum Distribution (RMD)
If you’re subject to RMDs, missing one can trigger steep penalties. Make sure you’ve taken the right amount from the right accounts (and that it’s fully processed—not just “scheduled”).
Do this now: Log in to your custodian account and confirm that the distribution is complete and posted.
2. If you’re charitably inclined, consider a Qualified Charitable Distribution (QCD)
For eligible taxpayers, donating directly from an IRA to a qualified charity can be a tax-smart way to give. The key: it generally must be completed by December 31 and paid directly to the charity.
Do this now: If you plan to give, contact your IRA custodian early—processing can take time.
3. Decide whether a Roth conversion belongs on your year-end to-do list
Roth conversions can be powerful, but timing matters. Conversions typically must be completed by December 31 to qualify for the current tax year. The “right” amount often depends on your current tax bracket, other income, and long-term goals.
Do this now: Run a rough estimate: “How much room do I have before I hit the next tax bracket?”
4. Check your tax picture before you lock in IRA moves
IRA decisions don’t happen in a vacuum. Bonuses, capital gains, required distributions, and Roth conversions can change your tax bill.
Do this now: Review year-to-date income and withholding. If you’re behind on taxes, ask whether adjusting withholding (or making an estimated payment) makes sense before year-end.
5. Review your investment mix and rebalance if needed
If markets moved significantly this year, your IRA may have drifted from your target allocation (more stock risk than you intended, or too much cash sitting idle).
Do this now: Compare your current allocation to your target and rebalance back within your preferred range.
6. Do a “fees and fund” audit
A small difference in fees can compound into a big difference over time. Review expense ratios on mutual funds/ETFs, advisory or management fees, account maintenance fees, and overlapping funds that do the same thing.
Do this now: Identify your top 1–3 holdings by dollars and check what you’re paying.
7. Make sure your beneficiaries are correct (and coordinated)
This is one of the most overlooked IRA tasks—and one of the most important. Beneficiary designations generally override your will.
Do this now: Confirm the primary and contingent beneficiaries, check the spelling, and ensure it matches your current wishes (marriage, divorce, births, deaths, etc.).
8. Check for outdated or “orphaned” IRAs and consider consolidation
Multiple old rollover IRAs from past jobs can be easy to forget and hard to manage. Consolidation can simplify your life, but it’s not always the best move (fees, investment options, and certain tax strategies can be affected).
Do this now: Make a list of every retirement account you have and where it sits.
9. Review contributions and set a plan (even if you contribute later)
Many IRA contributions can be made up until the tax-filing deadline for that year, but year-end is the best time to plan the amount and cash flow.
Do this now: Decide how much you intend to contribute for the year, whether you’ll contribute monthly next year (automation wins), and whether a spousal IRA contribution could apply in your household.
10. Look for potential mistakes before they become penalties
Common issues include contributing when you’re not eligible, contributing too much, accidentally rolling over the wrong type of account, and failing to track after-tax basis (if you ever made nondeductible contributions).
Do this now: If anything looks off, document it and talk with your tax pro quickly—fixes are usually easier when caught early.
11. Confirm your account security settings
Retirement accounts are prime targets for fraud. Security is a year-end essential, not a nice-to-have.
Do this now: Turn on (or verify) two-factor authentication (2FA), enable account alerts for withdrawals/changes, update your email/phone recovery info, and use strong, unique passwords (a password manager can help).
12. Create a simple “next-year IRA plan” on one page
The best year-end move is leaving January with clarity.
Do this now: Write down your target contribution amount and schedule, your target allocation, your rebalancing rule (for example: annually or when off by a set percentage), and any tax strategy you want to revisit (Roth conversions, charitable giving, etc.).
A quick reminder on deadlines
Not every IRA-related action must be completed by December 31 (some contributions can be made later). Still, several high-impact moves—such as RMDs, QCDs, and Roth conversions—are typically time-sensitive.
If you’re considering any of those, don’t wait until the last week of December.
This article is for general educational purposes and is not tax or legal advice. For guidance specific to your situation, consult a qualified tax professional or financial advisor.
