As we begin to approach the end of 2025, please note the following deadlines and reminders.
Tax-Advantaged Accounts
- Contributions to company-sponsored retirement plan contributions must be made by year-end
- Adjust 2026 contributions for company-sponsored retirement and benefits plans
- For IRAs:
- Take the RMD, or “Required Minimum Distribution”, from your IRA if necessary
- Consider a Qualified Charitable Distribution (QCD) if you would like to fulfill all or part of your RMD requirement by donating directly from your IRA to charity. Please note that all gifting forms must be completed and submitted by December 12, 2025.
- Consider establishing and/or contributing to a Custodial Roth IRA for working children or grandchildren[1].
- Normal IRA and Roth contributions can be made through Tax Day of the following year
- Make intended contributions to 529s by year-end to be eligible for state income tax deductions (if applicable)
- Spend through use-it-or-lose-it plans like FSAs
- Make HSA contribution by Tax Day of following year
Charitable Gifting Options
- Charitable giving not only supports a good cause, but it can also have tax advantages. Be sure to consult with your tax professional, as charitable gifting rules have changed under the OBBBA. Note that all gifting forms must be completed and submitted by December 12, 2025.
- Options for gifting include the direct donation of appreciated stock, donor-advised funds and/or a Qualified Charitable Distribution (QCD) (see above).
Year-end Tax Planning
- While we never recommend that taxes dictate investment strategy, in some cases tax loss harvesting, or selling securities for less than their cost basis to offset other realized capital gains, can make sense. There are restrictions around tax loss harvesting and should be done in consultation with your tax professional.
- The One Big Beautiful Bill (“OBBBA”) was a complex bill which made numerous changes and updates to tax rates, deductions and credits, charitable giving, estate tax exclusions, 529 expense eligibility and student loan programs, to name a few.
- Be sure to discuss any major personal or financial changes, such as the sale of a business, increase/decrease of expected income, change in marital status, etc. with your CPA.
Please reach out to us with any questions and have a wonderful holiday season!
[1] https://www.fidelity.com/learning-center/personal-finance/retirement/turbocharge-childs-retirement
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice.