Pediatrician

Year-End Financial Planning for Pediatricians: What to Do Before December 31

As a pediatrician, your time is already pulled in a dozen directions: patients, parenting, paperwork — and maybe squeezing in a holiday concert or two. The end of the year can feel more chaotic than reflective. But if you can carve out even 30–60 minutes for financial planning before December 31, you’ll give yourself a much calmer start to the new year.

This guide walks through what’s worth focusing on — and which deadlines matter most.

🧠 1. Start With a Quick Financial Pulse Check

Before we get into numbers, take a step back.

  • Where did your money go this year?

  • Did savings happen automatically — or not really?

  • Did your goals shift?

You don’t need a spreadsheet to do this. Just pull up your main bank or credit card dashboard and scan your biggest expense categories. If you have a partner, schedule a 30-minute debrief to reflect and talk through next year’s priorities.

⏳ 2. Items to Tackle Before December 31

These items have hard year-end cutoffs — and they’re worth reviewing now so nothing slips through.

🧮 Tax Strategy + OBBBA Planning

The One Big Beautiful Bill Act (OBBBA) brings several tax changes starting in 2025 and 2026. A few are already baked in for this year; others hit in 2026 — and they’re worth planning around now.

Key upcoming changes:

  • Charitable deductions: Beginning in 2026, taxpayers in the highest bracket will be able to deduct charitable donations only up to 35% of income (down from 37%). Plus, all itemizers will face a new 0.5% of AGI threshold before charitable deductions even begin to count.
    Translation: if you’re a high earner or a generous giver, you’ll get more tax benefit by doing extra giving in 2025 rather than waiting until 2026.

  • SALT (State and Local Tax) deduction: The cap will rise from $10,000 to $40,000 in 2026. That means it’ll become easier for many families — especially dual‑income households in high‑tax states — to itemize again.

Bottom line: some thoughtful planning now can help you make the most of these shifts — and avoid paying Uncle Sam more than your fair share.

❤️ Charitable Giving

  • If you plan to itemize, donations must be made by 12/31 to count for 2025.

  • Donor-Advised Funds (DAFs) remain an excellent tool to bundle multiple years of giving while locking in today’s deduction.

  • For those in higher brackets or who typically give larger amounts, 2025 may be the better year to accelerate donations before the 2026 deduction limits tighten.

🔁 Roth Conversions

If you’re planning to convert pre-tax dollars to Roth this year, it must be completed by 12/31 to count for the 2025 tax year.

  • This won’t apply to everyone, but it’s worth checking if:

    • Your income is unusually low this year (e.g. parental leave, job transition)

    • You’re already working with a CPA or advisor who flagged a conversion opportunity

🏥 FSA + Benefits Review

  • Healthcare & Dependent Care FSAs: Many plans have “use-it-or-lose-it” rules or a limited rollover ($660 for 2025). Check your balance and submit reimbursements ASAP.

📈 3. Max Out or Catch Up (Key Contribution Deadlines)

✅ 403(b)/401(k) Contributions

  • Deadline: December 31

  • Limit for 2025: $23,500 (+$7,500 catch-up if age 50+)

  • Not sure where you stand? Log into your plan portal and check YTD contributions. You can still increase your final paycheck contributions in many cases.

✅ HSA Contributions

  • Payroll-based contributions: Must be completed by 12/31

  • Direct contributions: Deadline is April 15, 2026

  • Limit for 2025: $4,300 individual / $8,500 family (+$1,000 catch-up at age 55)

✅ Backdoor Roth IRA Contributions

  • Deadline: April 15, 2026

  • Consider making contributions by 12/31 if you want a clean tax year. Backdoor Roths often require a Form 8606 and a little extra clarity helps if you're juggling conversions or rollovers.

✅ 529 Plan Contributions

  • Deadline: Varies by state — but contributing by 12/31 is cleanest

  • In Wisconsin, for example, you can deduct up to $5,130 per beneficiary for 2025.

  • These contributions aren’t reported to the IRS as directly as IRA or 401(k) contributions, so making these contributions within the calendar year is cleaner from a tracking standpoint.

🔍 4. Optional (But Smart) Year-End Checks

These may not have hard deadlines, but they help set you up for a strong new year.

💸 Review Withholding + Estimated Taxes

  • Had any side income? Spouse’s income shift? A bonus?

  • Consider adjusting your W-4 or making Q4 estimated payments by January 15 to avoid penalties.

  • Bonus tip: Use this time to prep documents for your CPA or tax software (Year-end pay slips, investment & 529 plan statements, contribution & Roth conversion information, etc.)

📆 Set 2025 Planning Dates Now

  • Schedule financial check-ins with yourself (or your planner)

  • Create placeholders for things like:

    • Roth contributions

    • College savings updates

    • Tax prep in February/March

    • Benefits review in the fall

🧘‍♀️ Final Thoughts

You don’t have to overhaul your financial life before January 1. But checking just a few of these boxes now can make next year feel lighter, more organized, and more aligned with what actually matters to you and your family.

If you want help walking through this list, or building a financial plan that reflects your values as a pediatrician and parent, I’m here for that.

👉 Schedule a free intro call
📄 Or download my free year-end checklist: “10 Smart Financial Moves to Make Before December 31