Smart Year-End Moves for 2025
Posted on October 29, 2025
As the year winds down, it’s a natural time to reflect and reassess. The last few months of the year give us a chance to tie up loose ends, make a few smart financial moves, and set the stage for a strong start in 2026. A little attention now can make a big difference later — especially since some new tax law changes are just around the corner.
Review Retirement Contributions
If you’re still working, this is the moment to double-check that you’re making the most of your retirement accounts whether it’s your 401(k), IRA, or another workplace plan. Contribution limits are higher this year, and those extra dollars can go a long way over time. Think of it as one of the simplest and most effective ways to build long-term security.
Consider Roth Opportunities
For some people, converting a portion of a traditional IRA into a Roth before year-end can make sense. Roth accounts grow tax-free and can be a powerful way to pass wealth along to the next generation. With certain rules changing in 2026, 2025 offers one more year of flexibility.
Check Your Investments
Markets always create winners and losers. If you’ve sold investments this year, reviewing gains and losses before December 31 can help balance out your tax picture. It’s also a good time to ask whether you hold too much of any single stock. Concentrated positions can add unnecessary risk, and gradual diversification may bring more stability.
Think About Giving
In 2025 you can gift to family and friends $19,000 each without incurring a gift tax. Charitable giving is another area where planning pays off. Donating appreciated securities, using a donor-advised fund, or directing a gift straight from an IRA (for those over 70½) can all reduce taxes while making an impact for causes you care about.
Keep an Eye on the Big Picture
One of the biggest stories this year is the new federal legislation informally called the “One Big Beautiful Bill Act.” Among other things, it sets a permanently higher estate tax exemption starting in 2026 and raises the deduction cap on state and local taxes (SALT). These changes could affect how your estate plan or tax return looks in the years ahead. Even if you don’t expect to be directly impacted, it’s worth checking in with your advisors to be sure your plan still works the way you intend in light of new legislation.
Update Documents and Beneficiaries
The end of the year is also a natural checkpoint for your estate documents. Wills, trusts and powers of attorney should reflect your current life and wishes. Beneficiary designations on retirement accounts and insurance policies are easy to overlook but just as important. A quick review now can prevent unpleasant surprises later.
Health Spending Accounts
Finally, don’t forget about accounts tied to healthcare expenses. If you have a high-deductible health plan, contributing to a health savings account (HSA) is a tax-efficient way to save for future medical expenses. Contributions are tax-deductible, and withdrawals for qualified expenses are tax-free. HSA funds roll over year to year, making them a powerful long-term savings tool—unlike flexible spending accounts (FSAs), which you must “use or lose” by year-end.
The end of the year is about more than closing the books. It’s a chance to refresh, rebalance, and make sure your financial strategies are aligned with your goals. A short review now can provide clarity and confidence heading into 2026. We welcome the opportunity to connect with you and your trusted advisors to make sure everything is aligned and you’re positioned for success.
Peggy Lindenberg
Trust & Estate Services
Tiffany Sikes, CFP®
Wealth Services
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