As 2025 winds down, it’s the perfect time to take stock of your financial picture, especially when it comes to taxes and long-term planning. The last few weeks of the year can make a big difference in how your 2026 tax return shapes up, and the right steps now could help you keep more of what you earn while setting you up for future success.
Here are some smart, year-end financial moves worth considering before December 31.
- Check Your Investments for Tax Efficiency
Markets have been anything but quiet this year, so it’s a good time to review your portfolio. Work with an advisor to consider tax-loss harvesting (selling investments at a loss to offset gains elsewhere) or rebalancing to bring your stock and bond mix back in line with your goals. Small tweaks now can reduce your tax bill and risk exposure later.
- Max Out Retirement Accounts
If you haven’t already, double-check your 401(k), IRA, or HSA/FSA contributions. Every extra dollar you contribute before year-end can lower your taxable income and boost your future nest egg. It might also be a good time to explore a Roth conversion, especially if you expect higher tax rates down the road.
- Don’t Forget Required Minimum Distributions (RMDs)
If you’re over 73 or have inherited certain retirement accounts, make sure you’ve taken your RMDs for the year. Missing one can trigger IRS penalties, but luckily, a well-timed strategy such as a Qualified Charitable Distribution (QCD) can satisfy your RMD and help a cause you care about.
- Give Strategically, Not Just Generously
Charitable giving is always meaningful, but it can also be financially savvy. Consider donating appreciated stock instead of cash to avoid capital gains taxes, or “bunching” multiple years’ worth of donations into one year to capture the full deduction through itemization.
- Revisit Gifting and Estate Plans
The annual gift tax exclusion allows you to give up to $19,000 per person in 2025 without affecting your lifetime estate limit, making it a simple and tax-efficient way to transfer wealth. While you’re at it, take a few minutes to review your beneficiary designations to ensure they still align with your wishes.
- Look Ahead with Your Financial Advisor
Sometimes, the best move is simply a planning conversation with your advisor. Reviewing your projected income and deductions before year-end can help identify opportunities to adjust the timing, while also considering where your 2025 and 2026 tax brackets will fall.
- Get Organized for a Smooth Tax Season
I wouldn’t be a good CPA without including a friendly reminder that it’s never too early to start pulling together tax records. Organizing your W-2s, 1099s, charitable receipts, and business expenses can make tax time far less stressful. You’ll also be in a better position to make last-minute decisions before December 31, rather than after the year closes.
A little year-end planning goes a long way. Whether you’re focused on taxes, investments, or retirement, the key is being intentional before the clock runs out. If you’d like to make sure you’re ending the year on a solid footing and positioning yourself for a better 2026, let’s talk.