2025 Year-End Financial Checklist: Key Tax Strategies, Contribution Limits and Planning Tips

As we wrap up 2025, it’s been a year full of shifts worth paying attention to: inflation remains sticky, interest rates have hovered higher for longer, and global trade uncertainty continues to linger. Against this backdrop, even though your portfolio may have gained, with the S&P 500 posting a roughly 17.5% total return year‑to‑date (early November). It’s wise to take a step back, review your financial picture, and complete your year‑end tasks so you’re ready for whatever the market throws next.

Review Your Financial Plan: Update Goals, Spending, and Retirement Priorities

To kick off your 2025 year-end financial checklist, we recommend starting with a review of your financial plan. For those of us who believe in the power of financial planning (and the vast majority of our clients who have gone through our planning process), this is one of the most efficient ways to check off many items on your year-end to-do list.

More importantly, it’s a chance to see if your planning goals have shifted. Have your priorities, spending habits, retirement timeline, or long-term goals changed since your last review? This is the perfect time to take stock and make sure your plan still reflects your current life and ambitions.

We’re always happy to discuss any of these items in more detail and explore how they apply to your unique situation. The end of the year can get hectic with holidays, gatherings, and all the excitement of ringing in a new year, but taking a little time now to review your financial plan will help you start 2025 with confidence and clarity.

2025 401(k) and 403(b) Contribution Limits: Maximize Savings and Employer Match

For 2025, the contribution limits for 401(k) and 403(b) plans are getting a nice bump. You can now put away up to $23,500 into your employer-sponsored retirement plan. If you’re 50 or older, you can add another $7,500 as a catch-up contribution, bringing your total to $31,000 for the year.

And here’s some good news for those in their early 60s: thanks to the SECURE Act 2.0, workers ages 60 to 63 can take advantage of an even larger catch-up contribution, up to $11,250 in 2025. That’s a great opportunity to supercharge your savings as retirement starts to come into view.

We always recommend contributing as much as you can to your retirement plan each year. But if maxing out isn’t realistic right now, at least aim to contribute enough to get your full company match, that’s free money you don’t want to leave on the table.

IRA Contribution Limits for 2025: Roth Eligibility, Phase-Outs, and Deduction Rules

When it comes to Traditional and Roth IRAs, the contribution limits for 2025 are still $7,000 if you’re under 50. If you’re 50 or older, you can throw in an extra $1,000 as a catch-up contribution, bringing your total to $8,000 for the year.

Keep in mind that income limits play a big role in determining whether you can contribute, especially for Roth IRAs. For 2025, if you’re a single filer, you can make a full Roth contribution if your modified adjusted gross income (MAGI) is under $150,000. The ability to contribute begins to phase out between $150,000 and $165,000, and phases out completely above $165,000. For those who are married filing jointly, the phase-out range runs from $236,000 to $246,000.

If you’re considering a Traditional IRA, you can generally contribute regardless of income, but whether your contribution is tax-deductible depends on your income and whether you (or your spouse) are covered by a workplace retirement plan. For 2025, full deductibility applies for single filers with a MAGI up to $79,000, and phases out at higher incomes.

That’s why it’s always smart to check in with your financial advisor or tax preparer to make sure you’re eligible and making the most tax-efficient choice. If you qualify, IRAs can be a powerful way to grow your retirement savings, whether that’s through tax-free growth with a Roth IRA or tax-deferred savings with a Traditional IRA.

529 College Savings Plans: 2025 Contribution Limits and Tax Benefits for Families

For 2025, contribution amounts to 529 college savings plans are generally tied to the annual gift tax limits annual/lifetime gifting limits. This year, you can contribute up to $19,000 per beneficiary (or $38,000 if you’re married and filing jointly) without triggering a gift tax return.

There’s also a helpful provision that allows you to “front-load” your contributions, meaning you can make five years’ worth of gifts all at once (up to $95,000 per beneficiary, or $190,000 for married couples), as long as it’s properly reported on your tax return. If you plan to contribute more than the annual limit, it’s best to work with your tax professional to make sure everything is documented correctly.

The deadline for 2025 contributions is December 31, 2025. Remember, while contributions aren’t deductible on your federal taxes, earnings grow tax-free, and withdrawals for qualified education expenses are also tax-free. Many states even offer state income tax deductions or credits for contributions, so it’s worth checking what benefits your state provides.

HSA and FSA 2025 Limits: How to Reduce Healthcare Costs and Save on Taxes

Depending on your employer’s benefits package, you may have access to a Health Savings Account (HSA) or a Flexible Spending Account (FSA). Both accounts offer valuable tax advantages, helping you save money on qualified medical expenses but they work in different ways.

For 2025, the contribution limits are:

• HSA: Up to $4,150 for individual coverage and $8,300 for family coverage. If you’re 55 or older, you can contribute an extra $1,000 catch-up contribution. HSAs are triple tax-advantaged, contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are tax-free.
  
• FSA: Employees can contribute up to $3,200 per year in 2025. FSAs are use-it-or-lose-it, meaning funds generally need to be spent within the plan year (or grace period, if offered). Unlike HSAs, FSAs are owned by the employer, so they don’t carry over if you change jobs.

The main differences come down to ownership and flexibility. HSAs are yours to keep and grow, even if you switch jobs, while FSAs are temporary accounts tied to your employer. Understanding which account fits your situation can make a big difference in how you save on healthcare costs and reduce your taxable income.

Tax-Loss Harvesting Strategies: Use Investment Losses to Lower Your 2025 Tax Bill

Tax-loss harvesting might sound complicated, but it’s really just a smart way to turn investment losses into tax savings. Here’s how it works: if you sell an investment in a taxable account for less than what you paid for it, that loss can be used to offset any gains you’ve made elsewhere in your portfolio.

Even better, if your losses are bigger than your gains, you can use up to $3,000 of the extra losses to reduce your ordinary income each year. And if you still have leftover losses after that, don’t worry, they carry forward to future years, ready to help lower taxes on gains or income down the road.

In short, tax-loss harvesting is like making your portfolio work a little harder for you by giving you a way to save on taxes while you invest.

Roth Conversion Opportunities: Tax-Smart Moves to Strengthen Your Retirement Plan

Roth conversions might sound a little intimidating, but they’re really just a smart way to move money from a Traditional IRA or 401(k) into a Roth account and set yourself up for tax-free growth in the future. Here’s the idea: when you convert funds from a Traditional retirement account to a Roth, you’ll pay taxes on the amount converted this year, but once it’s in the Roth, all future earnings and withdrawals can be tax-free, as long as certain rules are met.

Conversions can be done at any time during the year, but you’ll want to plan carefully around your tax situation. Smaller, strategic conversions spread over several years can help you avoid pushing yourself into a higher tax bracket. Many investors even use market dips as opportunities to convert, since the account balance is temporarily lower and the tax impact may be reduced.

Because Roth conversions impact your taxes so directly, it’s important to work with a financial advisor or tax professional. They can help determine how much to convert and when, making sure you get the benefits without taking on unnecessary tax risk.

In short, a Roth conversion is like giving your retirement savings a tax-smart upgrade. You pay some tax now, but you gain freedom from taxes down the road, reduced required minimum distributions, and more flexibility in retirement all while potentially leaving more tax-free money for your heirs.

2025 Gift Tax Exclusion and Charitable Giving Strategies to Reduce Taxes

Charitable giving is still a powerful way to reduce your taxable income and make a difference at the same time. While higher standard deductions have made this strategy less impactful for some taxpayers, there are still tax-efficient ways to give. Two popular methods are donating highly appreciated assets, which can help you avoid capital gains taxes, and making a Qualified Charitable Distribution (QCD) directly from an IRA if you’re 70 1⁄2 or older.

If you’re also thinking about gift and estate planning, remember that you have until December 31, 2025 to take advantage of the annual gift tax exclusion. This year, you can give up to $19,000 per recipient (or $38,000 for married couples) without affecting your lifetime gift and estate tax exemption. It’s a smart way to pass on wealth, support loved ones, and potentially reduce future tax exposure.

Annual Insurance Review: Ensure Your Coverage Matches Your Current Financial Needs

One area that’s often overlooked in a solid financial plan is insurance coverage — not just whether you have it, but whether your coverage amounts are still appropriate. Life changes like growing assets, paying down debt, or even home improvements can create gaps in protection you may not realize.

It’s a good idea to review your insurance annually. For homeowners insurance, make sure your policy reflects any improvements or increases in property value so you’re fully covered if something happens. Your insurance professional can help you understand your replacement coverage and ensure it aligns with your needs.

Don’t forget to audit other policies too. Life and disability insurance should be checked to confirm that benefits still match your goals. And if you have a long-term care policy, now is an especially important time to review it. Many carriers underpriced these plans in the past, and some policyholders are now facing premium increases or buyout offers. A timely review can help you understand your options and avoid surprises.

Update Your Beneficiaries: Prevent Errors and Protect Your Estate Plan

The end of the year is the perfect time to pause and review your financial plan, and one area you don’t want to overlook is beneficiary designations. Life changes like marriage, divorce, children reaching adulthood, or the loss of a loved one can have a major impact on who receives your retirement accounts, life insurance, and other assets.

Keeping your beneficiaries up to date isn’t just paperwork, it’s critical to making sure your wishes are honored and that your loved ones are protected. We recommend reviewing your beneficiary designations at least once a year, or anytime you experience a major life event. Taking a few minutes now can prevent confusion, disputes, and unintended outcomes later.