December's almost gone, but there's still time to clean up your finances. Nail down your taxes, top off your savings, and wrap up anything that counts when the calendar flips.
This federal retirement year-end checklist helps you close out your 2025 goals and set your 2026 limits while you’re already in planning mode. It’s the difference between sliding into the new year and stepping into it with your plan already working for you.
Consider Strategies to Help You Save in 2025 and Prepare for 2026 (Know the Limits)
Set your payroll deductions now so the new year doesn’t slip by before you hit your numbers.
Use your last 2025 paychecks to get as close as you can to this year’s targets. If you already hit the TSP 2025 contribution limits catch-up amount, great — you can focus on dialing in next year.
Update your 2026 TSP percentage in HR or payroll, so contributions start at the right level on January 1. The limits increase in 2026, and payroll needs the new percentage in place before the first pay period.
For more detail, review our internal breakdown of the 2026 changes: https://stwserve.com/new-2026-tsp-and-ira-contribution-limits-what-feds-need-to-know/
Knock this one off your federal retirement year-end checklist now, and make sure you're maxing out the upcoming TSP 2026 contribution limits catch-up options available to you.
FEHB/Open Season Tune-Up
Premiums only tell you so much. The bigger swing in your yearly costs usually comes from deductibles, coinsurance, and prescriptions, so compare those side by side to see what each plan really means for your budget.
If retirement is getting close, review the Federal Employees Health Benefits (FEHB) rules for carrying coverage and confirm you’re covered on the five-year requirement.
If Medicare enters the conversation for you or a spouse next year, note the two-year income lookback for Income-Related Monthly Adjustment Amount (IRMAA), so big income events in 2025 don’t create surprises in 2027.
Withholding & Taxes: Avoid April Surprises
Review federal and state withholding so it reflects your current mix of income — Federal Employees Retirement System (FERS) or Civil Service Retirement System (CSRS) payment, TSP withdrawals if you’ve started them, and any outside earnings.
If you’re already retired, pay attention to when different payments land — especially a lump-sum annual leave payout. The tax year you receive it drives what you owe. If estimated payments make sense for your situation, get them set up now and avoid an April scramble.
Learn more about your retirement benefits at our No-Cost webinars, featuring Ed Zurndorfer -
RMD & Withdrawal Hygiene (If Applicable)
If you hit the required minimum distribution (RMD) age this year, check your amounts and deadlines for each account. Set up a plan for next year now so the process stays easy. Many Feds use a recurring schedule to keep it all on track.
Investment Housekeeping (No Forecasts Needed)
Check your allocation and consider rebalancing if the market moved you off target — two TSP transfers a month, and extra moves go to the G Fund.
Then reset your contribution allocation so new money builds the mix you want and supports your TSP 2025 contribution limits catch-up target.
This keeps your 2025 plan cleanly wrapped before the switch to 2026 limits.
Beneficiaries & Paperwork Audit
Check your beneficiary designations for TSP, Federal Employees’ Group Life Insurance (FEGLI), and individual retirement accounts (IRAs) to make sure they still reflect your wishes. Those forms decide who receives the money.
Then look over your survivor elections, powers of attorney, and health-care directives. Keep the paperwork in a spot your family can get to without digging.
Cash-Flow & Debt Check
Check your emergency savings and decide whether you need to add a little more cushion — anywhere from 3 to 12 months is a reasonable range.
If high-interest debt is still on your books, map out how you want to tackle it in 2025 so it doesn’t pull money away from your retirement goals.
Put Your 2025 Plan on Autopilot
As the year concludes, you may wish to review your 2025 contribution elections, benefits, beneficiary designations, and any tax‑related or required minimum distribution items. You can also begin considering your 2026 contribution limits and payroll elections so that your plans are aligned with the start of the new year.
Reach out to the team at Serving Those Who Serve at [email protected] if you want a second set of eyes on your year-end moves.
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve. The TSP is a defined contribution plan, meaning that the retirement income you receive from your TSP account will depend on how much you (and your agency or service, if you're eligible to receive agency or service contributions) put into your account during your working years and the earnings accumulated over that time. The Federal Retirement Thrift Investment Board (FRTIB) administers the TSP.
RMD's are generally subject to federal income tax and may be subject to state taxes. Consult your tax advisor to assess your situation.
Contributions to a traditional IRA may be tax-deductible depending on the taxpayer’s income, tax-filing status, and other factors. Withdrawal of pre-tax contributions and/or earnings will be subject to ordinary income tax and, if taken prior to age 59 1/2, may be subject to a 10% federal tax penalty.
