Final 2025 Tax Reminders

​Below is a list of items to review before year-end…

​Retirement Plan Contributions
As 2025 comes to an end, be sure you max out limits as surplus funds and your plan allow, as well as updating contribution amounts for 2026 to match new levels.
 
Gifts & Donations
If planning gifts to any family members or other individuals, doing so before year-end allows you to max the 2025 limit now and make an added gift January 1 toward 2026 limits. So you can gift $38,000 to any individual in 2 calendar days.
 
For donations, you have until December 31 to apply toward 2025 and remember the new charitable deduction provisions for 2026 that provide an above-the-line deduction to help non-itemizers, but insert a limit for itemizers of deducting only donations that exceed .5% of adjusted gross income (i.e. – if AGI is $200,00, the first $1,000 of donations, or .5% of $200,000 income, will not be deductible).
 
Required Minimum Distributions (RMDs)
For those age 73 or older (age 75 if you reached 73 after 2023), be sure to take required distributions by December 31 to avoid penalties. This includes inherited IRA’s! Confirm RMD amounts with your account custodian(s). Consider QCD’s to satisfy your RMD while supporting a favorite charity.
 
Roth Conversions
Many future retirees will be getting hammered by taxes in retirement. Roth conversions can help! Here’s more on retirement taxation considerations - click here. Also, if you’re collecting Medicare, be careful of how conversions can result in surcharges.
 
Milestone Birthday Tasks
We wrote an article on this last year. Check it out to ensure you’re making needed changes!
 
Flex Spending Accounts (FSAs)
Review your account and the “use it or lose it” provisions. Schedule medical, dental, or vision appointments now to avoid forfeiting unused funds, or disburse funds for expenses already incurred.
 
Budgeting
It’s always a great year-end task to review your spending from the past 12 months, in order to adjust for the coming year. Use history to plan for the future!