If you want to contribute as much as possible to your 401(k), that is fine. The priority is to contribute at least enough to get the full employer match, if one is available. If you expect to earn more next year, this can also be a good time to raise your contribution rate.
Should you need to use up your FSA funds by the deadline? In most cases, yes. If you have a flexible spending account through your employer, the funds usually follow a use-it-or-lose-it rule with a deadline. There are exceptions, so check your plan’s rules before assuming your balance will roll over.
If you are unsure what qualifies as an eligible purchase, you can visit the FSA Store to see what is covered. Eligible items can include sunscreen, simple patches and even fitness trackers, so spending down a remaining balance can be practical rather than wasteful.
Is this the right time to harvest tax-losses?
Yes. The deadline for tax-loss harvesting is typically December 31, so the end of the year is a good moment to review your portfolio for opportunities. Tax-loss harvesting means selling investments that have lost value and using those losses to offset capital gains from other investments, which can potentially reduce your tax bill.