Most people only think about retirement planning when tax season arrives or when HR sends a year-end reminder. By then, many of the most valuable planning opportunities have already passed. In reality, some of the most impactful retirement strategies must be completed by December 31, and missing them can cost you significant tax savings and long-term growth.

Below are three key retirement deadlines that deserve your attention before year-end.

1. Maximize Your Employer 401(k) Match

If you have a 401(k) through your employer, this is often the most straightforward retirement win available. Employer matching contributions provide an immediate return that no market investment can replicate.

Many employees assume contributions are limited to payroll deductions made earlier in the year. In many plans, however, you can still increase or complete your contribution before December 31 by adjusting your final payroll or making an allowable year-end contribution.

Before year-end, contact your HR department and confirm:

●      How much you have contributed so far this year

●      How much of the employer match you have earned

Any remaining eligible match should be funded before December 31 to avoid leaving money on the table. Once the match is maximized, you can then evaluate whether additional contributions should be directed toward other retirement strategies.

2. Evaluate Whether a Mega Backdoor Roth Is Available

For higher earners who want to save beyond traditional 401(k) limits, the mega backdoor Roth can be a powerful strategy. Some employer plans allow after-tax employee contributions in addition to standard deferrals. When paired with an in-plan Roth conversion or rollover to a Roth IRA, this strategy allows significant amounts to move into tax-free retirement accounts.

Not all plans allow this option, and the rules vary by employer. The deadline to make after-tax contributions for the year is December 31, making it important to review plan features before time runs out.

This strategy is especially valuable for individuals who experienced a strong income year, received bonuses, or want to accelerate tax-free savings while current rules allow it.

3. Complete Roth Conversions Before Year-End

If you are considering converting traditional retirement funds to a Roth account, the timing matters. Any Roth conversion you want reported in the current tax year must be completed by December 31.

Year-end conversions can be especially effective when account values are temporarily lower or when your income places you in a favorable tax bracket. Many taxpayers choose a partial conversion approach, spreading conversions over multiple years to manage tax exposure while building long-term tax-free income.

Additionally, if you plan to fund a Roth IRA for a child or family member next year, earned income must be received before December 31. Contributions can be made later, but the income must occur in the current year.

Bonus Consideration for Business Owners: Solo 401(k) Setup

If you are self-employed or own a small business with no full-time employees, a Solo 401(k) offers expanded contribution options compared to traditional IRAs. While recent law changes allow certain plans to be adopted after year-end, establishing a Solo 401(k) before December 31 preserves maximum flexibility and access to key benefits.

Solo 401(k) plans may also qualify for a startup tax credit of up to $500 per year for three years, helping offset setup costs. Establishing the plan before year-end ensures eligibility for these benefits and allows contributions to be structured properly.

The Bottom Line

Year-end retirement planning is not just about saving more. It is about using the right tools at the right time. Maximizing employer matches, evaluating Roth strategies, and setting up retirement plans correctly before December 31 can have a lasting impact on your financial future.

At Wright CPA’s, we help individuals and business owners evaluate retirement strategies in the context of their full financial picture. If you want to make informed decisions before year-end deadlines, our team can review your situation and help you determine which strategies align with your goals.

Thoughtful planning today can lead to greater flexibility and confidence in retirement tomorrow.