Fall is here, making now an ideal time to address your year-end financial goals and begin mapping out new goals for the year ahead. Sequoia’s Special Needs Financial Planning team is a comprehensive financial planning partner, ready to support you on multiple fronts. Here are some ideas on what financial moves you should prioritize now.
1. Health Care Considerations
Open Enrollment
Open enrollment, the time to enroll in or change your health care plan, happens in the fall. Be sure to allow yourself enough time to thoughtfully consider if your personal circumstances have changed or will change in the year ahead.
Now is the time to review your current coverage and think about any life changes that will impact your future insurance needs, such as having a baby, if any dependents have received a new medical diagnosis, or if your child(ren) will turn 26 in the year ahead.
Medicare
After your initial enrollment in Medicare, you may change your prescription drug plan (Part D) or your Medicare Advantage plan (Part C) during the annual enrollment period, which occurs October 15 – December 7.
Health Savings Account (HSA)
If you have a High-Deductible Health Plan (HDHP), your plan may qualify you for an HSA. An HSA allows you to set aside pre-tax earnings, reduce your taxable income, and pay for qualified expenses without tax implications or penalties. Unlike the FSA, the balance in an HSA does not need to be spent down every year. There are other benefits to an HSA to be considered as part of your long-term financial plan, such as investing your HSA funds, using it as a retirement account after age 65, and including it in your estate plan.
Flexible Spending Accounts (FSA)
Are you utilizing an FSA? Now is an ideal time to review your current balance and spend it before the end of the year to avoid losing your contributions. If you’re not using an FSA, it may be a helpful way for you to pay for out-of-pocket health care expenses. You can learn more about FSAs here. In 2025, accountholders could elect up to $3,300 of their pre-tax income to be placed in an FSA account. The allowable amount for 2026 will be released soon.
2. Consider Fully Funding Your 401(k)
Saving in a traditional 401(k) allows your pre-tax money to grow over time with no taxes due until funds are withdrawn. Key benefits include your taxable income in the year you contribute being lower and the tax-free compounding of the money over the life of your account. In contrast, a Roth 401(k) is funded through after-tax contributions, but no taxes are due when funds are withdrawn. For 2025, your total contributions, whether they are made to a traditional or Roth 401(k) are $23,500, with an additional $7,500 catch-up contribution if you are over the age of 50.
Should you max out your 401(k)?
Contributing to your 401(k) may be a great move for your long-term financial health. The answer to whether you should max out your 401(k) depends on your personal circumstances. While saving for retirement should be a priority for everyone, before maxing out your 401(k), ensure you have sufficient income/cash flow to cover your current expenses. Because many employers will match your contributions up to a certain limit, you should aim to contribute at least that amount to your plan.
Beneficiary Designations
While you are reviewing your 401(k) contributions, you should review your beneficiary designations to make certain that you will not leave a direct inheritance to anyone who may be receiving or needing government benefits.
3. Gifting to Family Members
Gifting is an expression of your generosity and love and may be a valuable estate planning strategy. Now is an ideal time to consider if you wish to make a financial gift to a loved one before the end of the year.
Annual Gift Exclusion
The annual gift exclusion allows for you to make financial gifts to an individual without paying gift tax. The gifting limit for each giftee in 2025 is $19,000 ($38,000 for married couples). As an example, you may gift each of your children or grandchildren up to $19,000 this year, and the annual exclusion applies to each gift. If the person receiving the gift has special needs, gifting directly to that individual may have longer-term implications, such as limiting their eligibility for government assistance. Sequoia’s Special Needs Financial Planning team can help you determine an optimal strategy.
529 Plans
529 college savings plans continue to be a useful and tax-efficient tool to help pay for education-related expenses. In addition to being able to gift $19,000 per year to a 529 college savings fund for each beneficiary, 529 plans allow you to make a super fund gift of up to five years of contributions at once. In 2025, the limit is $95,000 per donor or $190,000 per couple. There are benefits and caveats when considering a lump sum gift. A lump sum gift allows the five years’ worth of contributions to grow tax-free over the entire period. Also, it enables donors to accelerate gifts to reduce their estate. However, no additional gifts may be made until five years have passed, even if you have not contributed the full allowable amount.
Over the years, new provisions have given 529 account beneficiaries additional options for utilizing funds that may remain in a 529 account and no longer serve their needs. Options include transferring money to the account beneficiary’s Roth IRA without taxes or penalties (some limits apply), taking a taxable distribution, using the funds to pay off up to $10,000 of qualified student loans for the account beneficiary or their siblings, or naming a family member as a beneficiary.
In addition, families with loved ones who have special needs are celebrating how the One Big Beautiful Bill is changing the use of 529 accounts, including expanded flexibility beyond traditional college expenses. Funds can be used for skilled trade training, vocational certifications, certain testing services, online education platforms, and educational therapies for students with disabilities. Additionally, the annual limit for K–12 private or specialized education expenses has doubled from $10,000 to $20,000.
Starting January 1, 2026, families can permanently roll over funds from 529 education savings plans into ABLE accounts. This option provides much-needed flexibility for families whose original college savings plans are no longer appropriate, particularly if a child’s educational path has changed due to a disability. Instead of facing penalties or limited options, parents and guardians now have a seamless way to reallocate resources for future expenses.
ABLE Accounts
A gift or inheritance given directly to a person with special needs might disqualify them from receiving important government benefits. An ABLE account is a tax-advantaged account that allows the owner to utilize funds for qualified expenses and save money without impacting eligibility for government benefits, such as Social Security income and Medicaid. Remember that qualifying individuals may only have one ABLE account with a maximum annual contribution amount of $19,000 in 2025 from all sources. There is an exception to this rule if the account owner is gainfully employed.
4. Charitable Contributions
Fall is a good time to track and think through your philanthropic giving to qualified charities. Starting in 2026, families in higher tax brackets may lose the ability to increase deductions for charitable contributions. This creates a planning window in 2025: Individuals considering large philanthropic gifts, whether to private foundations, donor-advised funds, or causes connected to disability advocacy, may benefit from acting before year-end.
- New floor for itemizers: Deductions for charitable contributions are only allowed once they exceed 0.5% of the taxpayer’s adjusted gross income (AGI).
- Reduced deduction for top earners: The maximum tax benefit for charitable contributions is capped at 35% for individuals in the top tax bracket (previously 37%).
Charitable giving strategies in 2025 can also complement ABLE and estate planning moves, creating a coordinated approach that aligns family values with financial optimization.
5. Estate Planning Considerations
Beginning in 2026, the lifetime unified gift and estate tax exemption will increase to $15 million per person, with inflation-based adjustments starting in 2027. This expanded threshold allows families to transfer wealth across generations, tax-efficiently and with strategic intent. For families with dependents who have special needs, this increase opens greater opportunities to fund Special Needs Trusts (SNTs), contribute to family foundations, or structure multi-generational support plans, while helping to decrease tax exposure.
6. Review Your Homeowner’s Insurance
Home values have increased dramatically over the past several years. This, coupled with inflation and supply chain woes, means that your home’s replacement cost may have increased significantly. In addition, rates on homeowner’s insurance have also gone up. While it is painful to focus on higher costs, it is key to protect your investment in your home by having adequate insurance. Now may be an opportune time to review your coverage and shop around to compare coverage and prices.
Many years ago, million-dollar lawsuits were considered excessive, and having a million-dollar umbrella insurance policy was considered adequate. With inflation of property values and people’s salaries, the million-dollar coverage may be insufficient in many cases. It would be prudent to discuss increasing your liability insurance with your insurance agent.
We’re Here to Help
Sequoia Financial Group is honored to serve as your comprehensive financial planning partner. If this article has prompted new thoughts about how you’d like to use your wealth or there are meaningful changes in your life that could impact your financial plan, please be sure to talk with us.
The views expressed represent the opinion of Sequoia Financial Group. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Sequoia believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Statements of future expectations, estimates, projections, and other forward-looking statements are based on available information and Sequoia’s view as of the time of these statements. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. Past performance is not an indication of future results. Investment advisory services offered by Sequoia Financial Advisors, LLC., DBA Special Needs Financial Planning. Registration as an investment advisor does not imply a certain level of skill or training.
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