As we head into the final stretch of 2025, many of my clients are focused on how to make the most of their retirement savings before the year ends.
Just last week, I met with Sarah (not her real name), a talented marketing director in her mid-50s, who was surprised to learn she’d been leaving money on the table with her 401(k). After a few simple adjustments, she’ll be adding an extra $3,000 to her retirement savings this year- a small change with a big impact.
If you’re a professional woman in your 50s or early 60s with retirement on the horizon, these next few weeks offer a golden opportunity to supercharge your savings and optimize your retirement strategy.
In my 23 years in financial services, 15 as a fiduciary financial planner, I’ve seen how a few smart moves before year-end can make a meaningful difference in someone’s retirement picture.
Here are four steps you can take right now to maximize your 401(k) and build momentum toward your Retirement Planning goals.
1. Max Out Your 401(k) Contributions
If you’re age 50 or older, you can contribute up to $31,000 to your 401(k) in 2025- that’s the $23,500 regular limit plus a $7,500 “catch-up” contribution.
Many people fall short of this maximum, but it’s worth checking how close you are.
- Review your most recent pay stub.
- Calculate how much you’ve contributed so far.
- If you’re behind, increase your contribution percentage for your final pay periods of the year.
Every dollar you contribute to a traditional 401(k) lowers your taxable income. For instance, if you’re in the 24% tax bracket, contributing an extra $5,000 could reduce your 2025 tax bill by about $1,200- while boosting your long-term savings.
2. Don’t Leave Free Money on the Table
It happens more often than you’d think: smart, successful professionals miss out on part of their employer 401(k) match simply because of timing.
Some companies match contributions per pay period- meaning if you front-load your 401(k) early in the year, you could lose match dollars later.
Action Step:
- Review your employer’s 401(k) match formula (often “50% of your contributions up to 6% of your salary”).
- Check your year-to-date contributions.
- Make sure your contributions are evenly spread across all remaining pay periods.
Sarah discovered she had stopped receiving matches in October because she had maxed out early. Adjusting her strategy ensures she’ll now capture the full employer match- that’s free money that grows over time.
3. Don’t Forget Your IRA and HSA Options
Your 401(k) isn’t your only retirement tool. If you’re 50 or older, you can also contribute up to $8,000 to an IRA in 2025 ($7,000 plus a $1,000 catch-up).
The good news: you have until April 15, 2026, to make your 2025 IRA contribution.
Traditional vs. Roth IRA:
- Traditional IRA: Tax deduction now; pay taxes later when withdrawing in retirement.
- Roth IRA: No deduction now; tax-free withdrawals in retirement.
For many professional women planning to stay active in retirement- through consulting, part-time work, or other income- a Roth IRA can provide valuable flexibility.
And if you have a high-deductible health plan, consider contributing to a Health Savings Account (HSA). For 2025, those 55 and older can contribute $5,300 (self-only coverage). HSAs offer triple tax benefits: contributions, growth, and qualified withdrawals are all tax-free.
4. Review and Rebalance Your Investments
As retirement approaches, it’s essential to ensure your investment mix still aligns with your goals and risk tolerance.
Ask yourself:
- Are your 401(k) investments too aggressive- or too conservative?
- Has your portfolio drifted from your target allocation?
Now is also a good time to:
- Look for tax-loss harvesting opportunities in taxable accounts.
- Consider whether a Roth IRA conversion makes sense, especially in a lower-income year.
These steps can improve your long-term after-tax returns and position you for a smoother transition into retirement.
Your Next Step: Plan for a Confident 2026
I know financial planning can feel overwhelming- especially when you’re balancing a busy career, family, and the realities of aging parents. That’s exactly why I built Dunncreek Advisors, LLC to help clients make clear, confident financial decisions.
These four strategies are just the start. Let’s take a personalized look at your financial picture, your 401(k), IRA, tax situation, and retirement timeline- and create a plan designed for you.
Schedule a conversation today to review your 2025 year-end financial strategy.
Together, we can ensure you finish the year strong and step confidently into the next chapter of your life.
I am a financial planner who is an advocate for my clients ALL THE TIME- a fiduciary financial planner. I provide guidance based on clients’ best interests, not commissions or sales quotas. I think it’s the best way to serve clients and I am thrilled to work this way all the time.
And yes, I’m still taking on a few great families to be part of my financial planning practice in West Saint Paul, Minnesota and, thanks to Zoom, across the country.
*As a fiduciary financial planner with 15 years of experience serving clients, I'm committed to putting your interests first. The information in this blog is for educational purposes and shouldn't be considered personalized financial advice. Let's talk about your specific situation.*
Dunncreek Advisors, LLC does not provide legal or tax advice, nor is this article intended to do so.
FAQs About Year-End Retirement Planning
1. How much can I contribute to my 401(k) in 2025 if I’m over 50?
You can contribute up to $31,000 total- including a $7,500 catch-up contribution.
2. When is the deadline for 2025 IRA contributions?
You have until April 15, 2026, to make your 2025 IRA contribution.
3. Should I choose a Roth IRA or Traditional IRA?
It depends on your current tax bracket and your expected income in retirement. A fiduciary advisor can help determine which option best fits your goals.
4. What is the benefit of rebalancing my 401(k) investments?
Rebalancing ensures your portfolio reflects your current risk tolerance and time horizon as you approach retirement.
5. How can a fiduciary financial planner help with year-end planning?
A fiduciary advisor puts your interests first, helping you identify tax-saving opportunities, optimize investments, and create a clear plan for retirement success.