Overview
- Verify tax withholdings, organize receipts, and make any 2025 charitable gifts by Dec. 31, with some advisers favoring donor-advised funds under recent tax-code changes.
- Maximize retirement contributions for 2025—401(k) limit $23,500 and IRA limit $7,000 ($8,000 if 50+)—and ensure required minimum distributions at age 73+ to avoid a 25% penalty.
- Rebalance investments and consider tax-loss harvesting before year-end, which can offset up to $3,000 of ordinary income, and consult a tax professional for complex decisions.
- Use Flexible Spending Account balances before they expire and consider year-end education and family moves, including 529 contributions and the $19,000 annual gift exclusion.
- Bolster emergency savings in high-yield accounts and direct year-end bonuses toward high-interest debt instead of additional holiday spending.