Before the Year Ends_ 9 Tax Moves to Make
“We should certainly count our blessings, but we should also make our blessings count.”
-Neal Maxwell
Below are 9 year-end tax opportunities—simple, powerful, and still doable before December 31st.
1. Max Out Your IRA or Roth IRA Contributions (2025 Rules Apply—But You Can Prep Now)
You technically have until April 15th to make your IRA or Roth IRA contribution for the 2025 tax year, but the smartest planners run the numbers now.
Why?
Because knowing your MAGI, your Roth eligibility, and how much space you have left helps you coordinate other moves like Roth conversions, tax-loss harvesting, and QCD planning.
If you’re still employed, don’t forget to check your employer plan contributions too—after Thanksgiving is when many people realize they’re short of maxing out.
2. Finish Your Required Minimum Distributions (RMDs)
If you’re 73 or older—or you inherited an IRA—your RMD must be taken by December 31st or you’ll face a penalty.
Yes… that penalty was softened under SECURE 2.0, but it still stings, and you don’t want the IRS in your stocking.
Two quick checks:
- Did you take your full RMD?
- Did your spouse?
- Did your inherited IRA RMD get completed?
A surprising number of people miss this because the holidays distract them. Don’t let January surprise you with the IRS’s version of coal.
3. Make a Qualified Charitable Distribution (QCD) From Your IRA
If you’re 70½ or older, this is one of the most overlooked tax gifts in the code.
A QCD sends money directly from your IRA to a charity, and:
- It counts toward your RMD
- It is not taxable income
- It keeps your AGI lower (which may protect against Medicare surcharges and Social Security taxation)
People always tell me, “I’ll just donate cash.”
Great—but for many retirees, QCDs are far more tax-efficient.
And year-end is the perfect time to decide what causes you want to support.
4. Consider a Year-End Roth Conversion
A Roth conversion before year-end can be a powerful move if:
- You’re in a lower tax bracket now than you expect to be in later
- Your portfolio is down, and you want to “move shares while they’re on sale.”
- You’re trying to reduce future RMDs
- You want to leave tax-free income to your heirs
Estimate your 2025 income precisely. Even a small “over-convert” can bump your Medicare premiums.
5. Harvest Capital Losses (Or Gains in the 0% Bracket)
Many people take advantage of this.
Loss Harvesting:
Sell investments at a loss to offset gains elsewhere.
But don’t forget the wash-sale rule—replacing an investment with the same security too soon eliminates the deduction.
TOO MANY people miss out on this…
Gain Harvesting:
If you’re in the 0% long-term capital gains bracket, you can realize gains tax-free and reset your cost basis higher.
It’s one of the most underused year-end tax planning tools.
If you’re not sure which bracket you’re in… that’s your sign to run the numbers.
6. Boost Your Charitable Deductions Before December 31st
Charitable giving is a classic year-end deduction move—but it’s even better when combined with tax strategy:
- Donate appreciated stock (bigger deduction, no capital gains)
- “Bundle” multiple years of giving into one year to exceed the standard deduction
- Use a Donor-Advised Fund (DAF) for flexibility and timing
Real financial planning for real life.
Riverbend is a fee-only, fiduciary advisor. Our plans are personal, shaped by your values and designed to help you build a full life.
Who We Are7. Use Up Your FSA Dollars and Make HSA Contributions
Flexible Spending Accounts (FSAs) often have a use-it-or-lose-it rule.
Some employers give a grace period—many do not.
Your Health Savings Account (HSA), however, is the exact opposite:
- Contributions lower your taxable income
- Growth is tax-free
- Withdrawals for medical expenses are tax-free
- After 65, it doubles as a “stealth IRA.”
- DON’T SPEND IT. Pay for expenses out of pocket and take pictures of receipts so that you can withdraw later tax-free.
- Invest the money in your HSA for growth over time. Many plans default to cash.
See if you are eligible for an HSA. You must have a high-deductible healthcare plan.
Maxing out your HSA is one of the most efficient tax moves you can make.
8. Make Last-Minute Estimated Tax Payments
If you sold a business, sold property, took a distribution, or had lumpy income this year, the IRS wants its cut in real time.
If you’re behind on estimated payments, December is your chance to catch up and avoid underpayment penalties.
Of course, check with your tax preparer.
9. Clean Up Your Withholding and Income Strategy for 2026
Before December 31:
- Check your W-4 withholding
- Evaluate your income strategy for next year
- Adjust paycheck withholding, Social Security tax plans, and planned distributions
Why now?
Because your January paystub becomes the template for the entire upcoming year.
A small change now avoids a big surprise later.
The idea is not to pay so much that you are giving the IRS a free loan, or pay so little that you owe a big check later.
Final Thoughts: This Week Is a Gift—Use It Wisely
Small moves now can mean:
- Lower AGI
- Lower taxes
- Lower Medicare premiums
- A smoother 2026
