Year-End Tax Planning Checklist
As we enter the final quarter of 2025, tax planning should move to the top of your list. You still have time to make smart financial moves that can reduce your 2024 tax bill, boost retirement savings, and strengthen your long-term plan. The goal isn’t just to pay less tax—it’s to keep more money working for you. Use this checklist to identify what to tackle before 31 December.
1. Retirement Accounts
Year-end is your last chance to lock in tax-deferred savings for the year.
Max out your 401(k), 403(b), or SIMPLE IRA: Contributions lower taxable income and build retirement savings.
IRA contributions: You can contribute up to $7,000 ($8,000 if 50+). Traditional IRAs may reduce taxable income, while Roth IRAs grow tax-free.
Roth conversions: If you expect higher future tax rates, converting pretax assets to a Roth now could make sense. Discuss with your advisor before converting large balances.
Small business owners: Review SEP IRAs, Solo 401(k)s, or defined benefit plans for larger deductions.
2. Tax-Loss Harvesting
If you have losses in taxable accounts, those can work in your favor.
Sell underperforming investments to offset gains from winners.
Up to $3,000 of remaining losses can offset ordinary income.
Avoid triggering the wash sale rule, which disallows the loss if you repurchase the same security within 30 days.
3. Charitable Giving
Giving strategically can reduce your taxable income while supporting causes you care about.
Donate appreciated securities instead of cash to avoid capital gains.
Use a donor-advised fund (DAF) to bunch multiple years of giving and claim a larger deduction this year.
If you’re over 70½, use Qualified Charitable Distributions (QCDs) from your IRA to satisfy RMDs tax-free.
4. Required Minimum Distributions (RMDs)
If you’re 73 or older—or have inherited an IRA—you must take RMDs by year-end.
Missing your RMD triggers a 25% penalty on the amount not withdrawn.
Consider directing your RMD to a charity via QCD if you don’t need the income.
5. Gifting and Family Planning
The annual gift exclusion lets you give tax-free to family or friends.
You can give up to $19,000 per recipient in 2025 without filing a gift tax return.
Gifts can fund education or savings accounts for children or grandchildren.
Direct payments to schools or medical providers don’t count toward the annual limit.
6. Estate Planning and Beneficiaries
Reviewing documents and designations now avoids problems later.
Confirm that beneficiaries on retirement accounts, life insurance, and TOD/POD accounts are current.
Update wills, trusts, and powers of attorney to reflect major life or financial changes.
Discuss gifting or trust strategies with your estate attorney if you expect future estate tax exposure.
7. Tax Projections and Estimated Payments
A quick projection can prevent surprises in April.
Review income, deductions, and credits with your CPA or advisor.
Make any final estimated payments to avoid underpayment penalties.
If you had a major life change (marriage, new job, business sale), confirm your withholding is still accurate.
8. Investment Review
Finish the year with an intentional portfolio check-up.
Rebalance to align with your target allocation and risk tolerance.
Review cash balances and emergency funds.
Evaluate where assets are held (taxable vs. tax-advantaged) to improve tax efficiency.
Final Thoughts
The end of the year is your opportunity to fine-tune your financial plan and strengthen your tax position. Small actions—maxing out retirement accounts, giving strategically, or rebalancing investments—can add up to real savings.
Don’t wait until tax season to find out what you missed. Review these steps now and coordinate with your advisor or CPA before 31 December.
Related: How the “Big Beautiful Bill” Reshapes Your Tax Plan
Visit my site -> finnprice.com
Education on a Weekly Basis -> Newsletter
Subscribe to the Youtube Channel for more video content -> Finn Price Youtube
About the author: Finn Price, CPFA, CEPA, is a business owner and wealth manager at Railroad Investment Group. He helps successful entrepreneurs & individuals with concentrated stock positions in their 30s, 40s and 50s build, organize, protect and transfer their wealth.
Note: this article is general guidance and education, not advice. Consult your money person or your attorney for financial, tax, and legal advice specific to your situation.
Securities and advisory services offered through LPL Financial, a registered investment Advisor, Member FINRA/SIPC.
