Skip to content

EPISODE 119 – Year-End Tax Planning Tips You Can’t Afford to Miss

As the final quarter of the year begins, it’s the perfect time to focus on one of the most powerful ways to influence your financial future—year-end tax planning.

In Episode 119 of The Last Paycheck Podcast, CFP® professionals Rob and Archie Hoxton outline key moves you can make before December 31 to potentially lower your tax bill, boost your retirement savings, and finish the year with confidence.

Why Timing Matters

Many tax-saving strategies have hard cutoffs on December 31—not April 15—making the fourth quarter your last chance to act. Starting now gives you time to collaborate with your advisor or CPA and make thoughtful decisions instead of scrambling at the last minute.

Retirement Moves to Consider

  • Required Minimum Distributions (RMDs): If you’re age 73 or older, you must take RMDs from retirement accounts like IRAs or 401(k)s. Delaying this can lead to steep penalties and higher taxable income.
  • Qualified Charitable Distributions (QCDs): If you’re 70½ or older, you can donate part or all of your RMD directly to charity—reducing your taxable income.
  • Roth Conversions: Converting funds from a traditional IRA to a Roth IRA can lock in today’s lower tax rates and grow your money tax-free in the future. This must be completed by December 31.

Make the Most of Contributions

  • You have until April 15 to contribute to IRAs, but contributing before year-end maximizes market exposure and simplifies record-keeping.
  • Over 50? Don’t forget catch-up contributions: $1,000 extra for IRAs and $7,500 for 401(k)s in 2025.

Capital Gains & Loss Harvesting

  • Review your investment performance and consider harvesting losses to offset gains or even regular income.
  • If you’re in the 0% long-term capital gains bracket, you may want to harvest gains tax-free while you can.
  • Own mutual funds? Be aware of year-end capital gain distributions—they could add to your tax bill even if you haven’t sold anything.

Smart Giving Strategies

  • Donor-Advised Funds (DAFs): Make a large donation this year, take the deduction, and distribute funds to charities over time.
  • Appreciated Securities: Donating these instead of cash avoids capital gains and provides a full deduction.
  • Annual Gift Exclusion: In 2025, you can gift up to $19,000 per recipient ($38,000 for couples using gift-splitting) without triggering gift tax filings.

Healthcare Planning

  • Flexible Spending Accounts (FSAs): Use it or lose it. Unused funds often expire at year-end.
  • Health Savings Accounts (HSAs): If you have a high-deductible health plan, max out your HSA for triple tax benefits.

Review Beneficiaries

Tax planning is also about protecting your legacy. Now is a great time to double-check that your beneficiaries are up to date across IRAs, 401(k)s, life insurance, and brokerage accounts.

Don’t Wait Until the Last Minute

Most of these strategies must be in place before December 31. Start planning now with your advisor or tax professional—and use our tools to get organized and avoid costly mistakes.

Want help wrapping up your year with confidence?

Use our free Tax Strategy Planning Calendar to stay organized—and then schedule a judgment-free meeting with a fiduciary advisor to put your plan into motion.
Download The Calendar
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.