Last updated: December 16, 2025
💼 Have You Really Maxed Your 2025 Benefits?
A simple year-end pass to capture every remaining tax-advantaged dollar
It’s mid-December. Projects, holidays, maybe a bonus—sure. But your benefits portal? Probably ignored since open enrollment. Limits rose again for 2025, and many high earners haven’t updated elections since their last raise—leaving thousands untapped. Let’s run a quick, focused sweep to maximize your 2025 benefits before December 31.
🏦 First Pass: The 401(k) + Catch-Up Checklist
2025 employee deferral: $23,500. Age-50 catch-up: $7,500 (total personal: $31,000).
- Check YTD contributions. Are you on track to hit $23,500 by your final paycheck?
- Turned 50 this year? You’re eligible for the $7,500 catch-up—even with a late-year birthday.
- Short of the limit? Temporarily raise your deferral for the remaining payrolls or route a big slice of your bonus into the plan.
Match caution: Some plans match per paycheck. Front-loading can reduce total match if there’s no year-end true-up. Review your plan’s rules here: maximizing employer-sponsored retirement plan contributions.
💉 The HSA Decision: Spend Now or Invest for Later
2025 limits: $4,300 (self-only), $8,550 (family), +$1,000 catch-up at 55+. HSAs deliver a triple tax advantage: pre-tax (often payroll-tax friendly), tax-free growth, and tax-free qualified withdrawals.
Long-horizon approach: Pay current medical costs from checking; invest your HSA for future healthcare. Start here: how to invest your HSA funds. Frame the HSA as a dedicated health bucket inside your broader plan: Life Driven Investing framework.
- Verify YTD HSA contributions; increase final-payroll deferrals if possible.
- If payroll is closed, you can contribute directly to the HSA by tax-filing deadline (note: no payroll-tax savings).
- Enable the HSA’s investment menu; move excess cash to a diversified allocation if your horizon is 10–20+ years.
🏥 The FSA Sweep: Avoid the Use-It-or-Lose-It Trap
2025 Health FSA: $3,300 salary reduction; typical carryover up to ~$660 (if plan allows). Dependent Care FSA: $5,000 per household. Dollars above carryover generally forfeit.
- Check your balances now in the portal.
- Book dental/vision/orthodontia you’ve delayed; stock eligible OTC items.
- Submit outstanding claims before the deadline.
- Right-size next year’s election based on actual usage.
Need a broader benefits context? See this overview that touches HSA & FSA decisions within employer plans: Company Retirement Plans: The Ultimate Guide.
🚀 Mega Backdoor Roth: The Advanced Move
2025 combined 401(k) limit: $70,000 (or $77,500 with catch-up). If your plan allows after-tax contributions above the elective deferral and supports in-plan Roth conversion or in-service rollover, you can stuff additional dollars into the plan and convert to Roth.
- How it works and plan requirements: after-tax contributions / Mega Backdoor Roth.
- Why it matters: expand Roth balances beyond IRA caps to improve future tax diversification strategies.
🧠 Making Sense: A 45-Minute Win
Example: Jennifer (Director of Engineering, $350k) discovered she was $3,200 short of the 401(k) limit, left $8,000 idle in her HSA cash, and had $600 in FSA at risk. Two payroll tweaks, an HSA investment shift, and a couple of health appointments later—$4,000+ in savings captured and zero forfeits.
Bottom line: limits are higher, elections lag, and the portal quietly decides whether your dollars compound for your future—or forfeit to taxes. Do the sweep now, automate it for next year, and you’ll actually max your 2025 benefits.
🔑 Key Takeaways
- Top off 401(k) to $23,500 (+$7,500 age-50 catch-up); confirm match rules.
- Treat HSA as an investable, long-horizon health bucket—don’t leave it in cash.
- Clear FSAs before forfeits; right-size next year’s elections.
- Use Mega Backdoor Roth if your plan allows after-tax + conversion/rollover.
❓FAQ
Will front-loading my 401(k) reduce my employer match?
Some plans match per paycheck (no true-up). Confirm your plan’s method before front-loading: employer-sponsored plan contributions.
Should I invest my HSA or spend it annually?
If you can cash-flow current care, invest the HSA for future expenses and tax-free growth: invest your HSA funds.
How do I know if my plan supports the Mega Backdoor Roth?
Your plan must allow after-tax contributions and either in-plan Roth conversion or an in-service rollover. Start here: Mega Backdoor Roth guide.
Where does this fit in my bigger portfolio plan?
Frame each account inside your asset-location and goal-based plan: Life Driven Investing framework.
👉 Lock It In With a 15-Minute Review
Want help confirming your remaining 2025 space and whether a Mega Backdoor Roth is on the table? Book a short Wealth Clarity Chat and we’ll finalize your benefit sweep checklist together.
Educational only—this is not tax, legal, or investment advice. Consult your professional advisors for personal guidance.