Keep These Year-End Financial Planning Opportunities In Mind
As 2025 winds down, it’s crucial to revisit your financial plan and ensure that you’re taking advantage of timely opportunities. A few strategic moves before year-end may help you to finish the year strong and stay aligned with your long-term goals. Here are a few important items to consider:
- Required Minimum Distributions (RMDs)
If you're age 73 or older, your RMD must be satisfied by December 31st. For inherited IRAs, confirm whether annual distributions or the 10-year rule applies.
- Charitable Giving & Gifting Strategies
If you’re 70½ or older, you may donate up to $108,000 directly from your IRA via a Qualified Charitable Distribution (QCD) – a tax-efficient way to give.
Consider contributing to a Donor-Advised Fund (DAF) or using the annual gift tax exclusion ($19,000 per person) to support loved ones or reduce your taxable estate.
- Retirement Contributions
For 401(k)s and 403(b)s, individuals may contribute up to $23,500. For those 50 and older, an additional catch-up of $7,500 is permissible ($31,000 total). Individuals age 63-65 are entitle to a “super” catch-up contribution of $11,250 ($34,750 total). Contributions must be made by December 31st.
For IRAs and Roth IRAs, individuals may contribute $7,000, with an additional $1,000 catch-up if age 50 and over ($8,000 total). The contribution deadline is April 15th, 2026.
This is also a good time to explore Roth conversions if you expect lower income this year.
- Tax Loss Harvesting
Review taxable investment accounts for potential losses that can offset capital gains and reduce your 2025 tax bill, being mindful of wash sale rules. At United, we proactively look for opportunities to harvest losses throughout the year.
- Review Withholding & Estimated Taxes
To avoid underpayment penalties, consider adjustments for bonuses or investment income.
Year-end planning can have a lasting impact. Contact your advisor at United Asset Strategies to discuss options that may be available to you.