As we approach the final weeks of 2025, there’s still time to make adjustments that can strengthen your financial plan before year-end. Below is our annual checklist—practical reminders to help you finish the year well and set up a strong start to 2026.
A quick note: your advisor, tax professional, plan administrator, and custodians will need time to process requests before December 31. If any of these items apply to you, please start early so your team can act on your behalf.
If you’re looking to boost savings or manage taxable income, start with your workplace retirement plan and consider adjusting your deferral rate for the final pay periods of the year. The 2025 employee deferral limit for 401(k)/403(b)/most 457(b) plans is $23,500; those who are 50 years of age or older can contribute an additional $7,500 in catch-up contributions. (Note: A special SECURE 2.0 catch-up of $11,250 applies to those age 60–63.)
You can also fund IRAs (Traditional or Roth) up to $7,000 for 2025 (or $8,000 if you’re 50 or older). Remember, 2025 IRA contributions can be made up to the federal tax filing deadline in April 2026.
With an eligible high-deductible health plan, HSAs remain one of the most tax-efficient tools available: contributions are pre-tax, growth is tax-deferred, and qualified withdrawals are tax-free. The 2025 HSA contribution limits are $4,300 (for individuals) and $8,550 (for married couples), plus $1,000 catch-up if you are 55 or older.
Investors 73 or older must generally take RMDs from pre-tax retirement accounts by December 31. Calculations are based on prior-year end balances. If you have multiple IRAs, you can aggregate RMDs and take the total from one IRA, but qualified workplace plans require distributions from each plan separately. (Roth 401(k)s and IRAs have no lifetime RMDs for the original owner.)
After a choppy year in some sectors of the stock market, there may be opportunities to realize losses where it makes sense to offset realized gains and, if applicable, deduct up to $3,000 of net capital losses against ordinary income. Be mindful of wash-sale rules: if you sell a holding at a loss, you can buy a similar fund or stock—not the exact same one—to stay invested.
A Roth conversion transfers assets from a pre-tax account to a Roth IRA (taxable in the conversion year), trading a known tax bill today for potential tax-free growth and withdrawals later. This is a useful strategy in lower-income years, after large charitable gifts, or when you have room in a lower tax bracket. Coordinate with your tax professional to model scenarios and avoid unintended “bracket creep” or Medicare IRMAA surprises.
For families using 529 plans, year-end is a natural time to top off contributions, confirm investment allocations, and verify that withdrawals match qualified expenses. If your situation has changed, revisit beneficiary designations and your long-term savings goal.
To claim 2025 charitable deductions, gifts must be completed by December 31 and you’ll generally need to itemize for a deduction to apply. Even if you haven’t itemized in recent years, the increase in State and Local Tax (SALT) deduction may make itemizing easier. Tactics to consider:
● Bunching two years of gifts into one tax year to clear the itemization hurdle
● Donating appreciated securities (avoid capital gains while deducting fair market value)
● For those 70½ or older, using Qualified Charitable Distributions (QCDs) from IRAs—up to $108,000 per individual in 2025—can satisfy all or part of your RMD while excluding the distribution from taxable income.
Looking ahead to 2026: many figures the IRS updates annually—tax brackets, the standard deduction, phaseouts, and contribution limits—will reset, so expect new numbers next year. If you’re between the ages of 60 and 63, remember the enhanced catch-up window for workplace plans in 2025. When the plan allows—and if cash flow supports it—it can help strengthen savings in the years leading up to retirement.
At The Fiduciary Group, our goal is to keep your financial plan aligned with what matters most to you—through market cycles and life events. If you’d like help prioritizing which actions make sense for your situation, we’re here to help.