Year-End Financial Checklist: Optimize Your Year-End Financial Strategy

By Stuart Gillin, CFP^®

Older couple looking over financial statements at kitchen table — As the end of the year approaches, it’s the perfect time to take stock of your financial picture and ensure you’re taking advantage of opportunities to save on taxes, maximize your investments, and plan for the future. We are happy to meet with you and see which strategies fit into your financial plan. Here’s a rundown of strategies to consider before December 31st.

Maximize Retirement Contributions

Take advantage of tax-advantaged savings by maximizing retirement contributions. The 2025 401(k) contribution limit is $23,500 for those under 50, $31,000 for those ages 50-59, or $34,750 for those ages 60-63. If you’re self-employed, you can contribute an additional $46,500.

Roth IRAs and Conversions

A low-income year can be a great opportunity to fund a Roth IRA or convert funds from a traditional IRA to a Roth IRA. The latter strategy allows you to pay taxes on the converted amount now, locking in future tax-free withdrawals. Be sure to discuss this with your financial professional to determine if it’s the right fit for your situation.

Required Minimum Distributions (RMDs)

If you’re 73 or older, you are required to take minimum distributions from your retirement accounts each year. These withdrawals, known as RMDs, must typically be made by December 31st to avoid a steep penalty. However, there is a special rule for your first RMD. If you turned 73 this year, you have until April 1, 2026, to take your first RMD.

While deferring your first RMD until April 1 may seem appealing, keep in mind that doing so will require you to take two RMDs in the same tax year. This will potentially increase your taxable income. For those who don’t need the extra income, consider using Qualified Charitable Distributions (QCDs) to satisfy your RMD while minimizing your tax impact.

Qualified Charitable Distributions (QCDs)

If you’re over 70.5 years old, a QCD may be a tax-smart way to support your favorite causes. You can direct up to $108,000 tax-free from your IRA to charity, satisfying your required minimum distribution (RMD) without increasing your taxable income.

Tax-Free Gifting

The annual gift tax exclusion allows individuals to gift up to $19,000 per recipient in 2025 without having to file a gift tax return. Additionally, you can take advantage of the lifetime gift and estate tax exemption. The exception is currently $13.99 million for individuals or $27.98 million for married couples.

Charitable Contributions

If you’re planning to make charitable donations, think strategically to get the most benefit. One approach is “bunching” donations—combining multiple years of giving into a single year to exceed the standard deduction and allow for itemization. For those seeking flexibility, consider opening a donor-advised fund. This allows you to contribute a lump sum in one tax year, take an immediate deduction, and distribute the funds to charities over time.

Donating appreciated securities held for more than one year is another useful strategy. You can deduct their full market value (up to 30% of your adjusted gross income) while avoiding capital gains taxes.

Tax Loss Harvesting

If your portfolio includes investments that have lost value, year-end is the perfect time to harvest those losses. Selling losing positions can offset realized capital gains for 2025. If losses exceed gains, you can offset up to $3,000 of ordinary income. This strategy helps reduce your tax liability while keeping your portfolio aligned with your goals.

Income Deferral

Deferring income into 2026 and accelerating deductible expenses into 2025 can reduce your taxable income for the 2025 tax year. This strategy is most effective if you expect to be in a lower tax bracket in 2026. Charitable contributions can be accelerated, and certain medical expenses may be timed when appropriate, although they remain subject to the 7.5% AGI threshold. Make sure to touch base with your CPA when working on tax planning strategies.

Work with Your Team

These strategies can help you make the most of your year-end financial planning, but not every approach is right for everyone. Schedule a meeting with your financial advisor to review your situation and any potential strategies. Taking the time now to address these year-end considerations can lead to meaningful savings and set the stage for a strong financial future.

Stuart Gillin

AVP

Family Advisor / Investment Advisor

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Year-End Financial Checklist: Optimize Your Year-End Financial Strategy