2025 Year-End Planning
5 money moves before year-end
With year-end deadlines approaching, there are steps you may be able to take now before December 31 for potential tax-saving opportunities. Revisit your plan with your advisor to see if these opportunities are suitable for your situation. Contact your advisor today.
Explore 5 money moves now that could pay off later
Request a capital gain/loss report from your advisor
A capital gain/loss report can help you see where you stand. In a year when the markets have reached record highs, you may have sold stocks and realized capital gains. You could also hold stocks that have decreased in value that you may want to sell.
Why it matters
Using this report, you can look for tax-loss harvesting opportunities to help reduce your tax bill. In other words, you may find opportunities to sell investments at a loss and use the capital losses to offset capital gains and up to $3,000 of ordinary income.
Fund retirement accounts
Consider maximizing contributions to employer-sponsored retirement accounts, like 401(k) and 403(b) plans, and IRAs for tax-advantaged growth potential. The deadlines are generally December 31, 2025, for employer-sponsored plans and April 15, 2026, for IRAs.
Why it matters
Contributions to certain retirement accounts may be tax-deductible, helping to reduce your income tax bill.
While not all retirement accounts offer this benefit, funding your retirement account may give your money the potential to grow tax-deferred (or tax-free in certain situations), helping to maximize your retirement savings.
Contribute to education savings
To help children or grandchildren afford higher education, consider funding a 529 plan. These plans have the potential to grow tax-deferred, and distributions may be federal tax-free if used for qualified education expenses.
Why it matters
Recent legislation expanded the definition of qualified education expenses allowing more permitted uses for 529 assets.
Along with funding education, gifting to 529 plans can help reduce the size of your taxable estate.
Please consider the investment objectives, risks, charges and expenses carefully before investing in a 529 savings plan. The official statement, which contains this and other information, can be obtained by calling your financial advisor. Read it carefully before you invest. The availability of such tax or other benefits may be conditioned on meeting certain requirements.
Take required minimum distributions from retirement accounts
If you have attained the age to take required minimum distributions (RMDs) or have inherited an IRA, you may be required to take an RMD annually by December 31. Ask your tax advisor for details.
Why it matters
If you don’t take your full RMDs by the deadline, you may be subject to an IRS 25% excise tax for every dollar under-distributed. This may be reduced to 10% if you correct the shortfall during a two-year correction window.
Donate to charity
Consider making gifts to charities. Review the timing of these gifts with your tax advisor to potentially maximize your tax deductions.
Why it matters
Charitable donations may be tax-deductible as an itemized deduction and offer planning flexibility if you decide to donate over several years. For 2025, your itemized deductions generally must exceed $15,750 (single filers) or $31,500 (married/joint) for you to benefit from that charitable gift.
Explore 5 money moves now that could pay off later
Request a capital gain/loss report from your advisor
A capital gain/loss report can help you see where you stand. In a year when the markets have reached record highs, you may have sold stocks and realized capital gains. You could also hold stocks that have decreased in value that you may want to sell.
Why it matters
Using this report, you can look for tax-loss harvesting opportunities to help reduce your tax bill. In other words, you may find opportunities to sell investments at a loss and use the capital losses to offset capital gains and up to $3,000 of ordinary income.
Fund retirement accounts
Fund retirement accounts
Consider maximizing contributions to employer-sponsored retirement accounts, like 401(k) and 403(b) plans, and IRAs for tax-advantaged growth potential. The deadlines are generally December 31, 2025, for employer-sponsored plans and April 15, 2026, for IRAs.
Why it matters
Contributions to certain retirement accounts may be tax-deductible, helping to reduce your income tax bill.
While not all retirement accounts offer this benefit, funding your retirement account may give your money the potential to grow tax-deferred (or tax-free in certain situations), helping to maximize your retirement savings.
Contribute to education
Contribute to education savings
To help children or grandchildren afford higher education, consider funding a 529 plan. These plans have the potential to grow tax-deferred, and distributions may be federal tax-free if used for qualified education expenses.
Why it matters
Recent legislation expanded the definition of qualified education expenses allowing more permitted uses for 529 assets.
Along with funding education, gifting to 529 plans can help reduce the size of your taxable estate.
Please consider the investment objectives, risks, charges and expenses carefully before investing in a 529 savings plan. The official statement, which contains this and other information, can be obtained by calling your financial advisor. Read it carefully before you invest. The availability of such tax or other benefits may be conditioned on meeting certain requirements.
Take minimum distributions
Take required minimum distributions from retirement accounts
If you have attained the age to take required minimum distributions (RMDs) or have inherited an IRA, you may be required to take an RMD annually by December 31. Ask your tax advisor for details.
Why it matters
If you don’t take your full RMDs by the deadline, you may be subject to an IRS 25% excise tax for every dollar under-distributed. This may be reduced to 10% if you correct the shortfall during a two-year correction window.
Give to charity
Donate to charity
Consider making gifts to charities. Review the timing of these gifts with your tax advisor to potentially maximize your tax deductions.
Why it matters
Charitable donations may be tax-deductible as an itemized deduction and offer planning flexibility if you decide to donate over several years. For 2025, your itemized deductions generally must exceed $15,750 (single filers) or $31,500 (married/joint) for you to benefit from that charitable gift.
Download the full guide for 2025 tax deadlines and strategies to consider by year-end.