Finish the Year Strong: Smart Tax Moves to Consider Before 2025 Ends
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Estimated Read Time 4 Minutes
Author: Khy Sweeney
Khy Sweeney contributes to Longevity Wealth Strategies, helping translate complex financial concepts into clear, actionable insights for families planning a stronger financial future.
As the year winds down, it’s a great moment to evaluate your tax strategy and identify opportunities that may help you keep more of what you’ve earned. Thoughtful planning before December 31 can meaningfully influence your 2025 tax bill and set you up for a stronger financial year ahead. Here are several strategies worth reviewing with your advisor.
Maximize Your Retirement Contributions
One of the simplest ways to reduce taxable income, while building future wealth, is by contributing to retirement accounts.
401(k)/403(b) Plans
For 2025, you can contribute up to $23,500 pre-tax.If you're 50 to 59 or 64+, your limit increases to $31,000.
If you turn 60, 61, 62, or 63 during 2025, your limit rises to $34,750 under the special catch-up rules.
Traditional & Roth IRAs
You may contribute $7,000, or $8,000 if you're 50 or older. Traditional IRA contributions may be deductible depending on income and plan participation, while Roth contributions are made with after-tax dollars.
Note: 2025 IRA contributions can be made through April 15, 2026.
Understand New Deduction Rules for 2025
Tax law changes matter and this year brought some meaningful updates.
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, adjusts several major deductions originally established under the Tax Cuts and Jobs Act (TCJA). If you typically itemize or are close to the standard deduction threshold, it’s worth reviewing with your tax professional to see how the new rules may affect you.
Time Income Strategically
If your income fluctuates year to year, timing can be a powerful planning tool.
Expect a lower tax bracket in 2026? Consider deferring income, such as a bonus or planned asset sale, into next year.
Expect higher income next year? It may make sense to accelerate income into 2025 to take advantage of today’s potentially lower tax rate.
This strategy is especially valuable when you're near thresholds that impact credits, deductions, or Medicare-related taxes.
Prioritize Long-Term Capital Gains
Holding appreciated investments for at least 12 months can significantly reduce taxes on gains:
Long-term capital gains rates: 0%, 15%, or 20% (depending on income).
Short-term gains: Taxed as ordinary income, which may be considerably higher.
If you’re close to the one-year mark, waiting could mean real tax savings.
Harvest Investment Losses Thoughtfully
If certain investments have declined and you no longer want to keep them:
You can sell to offset capital gains elsewhere in your portfolio.
Losses beyond your gains can offset up to $3,000 of ordinary income ($1,500 if married filing separately).
Any unused losses can be carried forward to future years.
Be mindful of the wash-sale rule: You cannot deduct the loss if you repurchase the same (or substantially identical) investment within 30 days before or after the sale.
Boost Your Health Savings Account (HSA)
If you’re covered by a high-deductible health plan, your HSA remains one of the most tax-efficient savings tools available.
2025 HSA contribution limits:
$4,300 for individual coverage
$8,550 for family coverage
(Both employer and employee contributions count toward the limit.)
Contributing before year-end may reduce your 2025 taxable income and HSA funds can grow tax-free for future qualified health expenses.
Note: 2025 HSA contributions can also be made through April 15, 2026.
Make Charitable Giving Work for You
If you itemize deductions, charitable gifts may reduce your taxable income. Deduction limits vary:
Up to 60% of AGI for cash gifts to public charities
Up to 50%, 30%, or 20% depending on the asset type and organization
Unused charitable deductions can be carried forward for five years
If you’re planning year-end giving, consider whether donating appreciated securities or using a donor-advised fund may be beneficial.
Move Into 2026 with Confidence
Year-end tax planning doesn’t have to be overwhelming. It’s simply about being proactive and making smart decisions that align your tax strategy with your broader financial goals.
If you’d like help evaluating these opportunities, Longevity Wealth Strategies is here to guide you through the decisions that matter most for your long-term financial health.
Your Next Step
Schedule Your Wealthspan Review™Disclaimer: The information provided in the linked resources is for educational purposes only and does not constitute investment, tax, or financial advice. Consult with a licensed professional before making any financial decisions.
Reader Resource Center
Explore these trusted IRS resources for deeper guidance and official tax information.
Retirement Savings & Contribution Limits
IRS: Retirement Plan Contribution Limits (401(k), 403(b), etc.)
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-contributions
IRS: IRA Contribution Limits
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
Health Savings Accounts (HSAs)
IRS: Health Savings Account (HSA) Overview & Contribution Rules
https://apps.irs.gov/app/vita/content/00/00_10_005.jsp?level=a
Capital Gains & Investment Tax Rules
IRS: Capital Gains Tax Information
https://www.irs.gov/taxtopics/tc409
Charitable Giving & Deductions
IRS Publication 526: Charitable Contributions
https://www.irs.gov/forms-pubs/about-publication-526
IRS: Charitable Contribution Deduction Rules
https://www.irs.gov/taxtopics/tc506
Year-End Tax Planning
IRS: Tax Tips & Year-End Guidance
https://www.irs.gov/newsroom/irs-tax-tips
Recent Tax Law Updates
2025 Federal Tax Law Changes (OBBBA Summary)
Because the One Big Beautiful Bill Act (OBBBA) is new legislation, summaries are primarily available through congressional and tax policy resources. A reliable, nonpartisan source is:
https://www.congress.gov
