The new year is a great time to simplify your finances, stretch your savings, and start getting ready for tax time.

Give yourself a financial check-up. Use the calculator at our website to see if you're on track to reach your retirement-savings goals. Check your credit report for errors for free at AnnualCreditReport.com.

Clean up your tax files. Keep your tax returns forever, but you can shred most canceled checks and receipts after three years. Keep Form 8606 recording nondeductible IRA contributions until you liquidate your IRAs.

Take advantage of new savings limits. Contribution caps for 457s increased for the first time in two years—up to $17,000 for 2012 (or $22,500 if 50 or older). Or people close to retirement may be able to contribute up to $34,000 through the "Pre-Retirement Catch Up." Contributing an extra $100 per month adds up to $1,200 by year-end, but lowers your take-home pay by just $75 a month if you're in the 25 percent tax bracket—saving you $300 in taxes. See Ask ICMA-RC to find out how to increase your contributions.

Simplify your finances. You can sign up to have money invested automatically in a Roth IRA every month—$416 monthly gets you to the $5,000 maximum for the year.