As the year winds down, life tends to feel full. You may be preparing for the holidays, wrapping up final projects, or beginning to map out what you want the new year to bring. In the middle of all of that, sitting down to organize your finances can easily fall to the bottom of the list.

Yet the final weeks of the year often hold some of the most meaningful financial planning opportunities, especially in 2025. With the One Big Beautiful Bill Act (OBBBA) reshaping several tax rules for individuals and families, this year’s decisions carry a little more weight.

Even if the legislation won’t significantly affect your situation right now, a thoughtful year-end review ensures you’re not leaving money on the table or missing a chance to strengthen your long-term plan. Here’s a clear and comprehensive checklist to help you finish the year with confidence and position yourself for a smoother, more tax-efficient 2026.

#1: Estimate Your Income for 2025 and 2026

While the OBBBA made permanent the current individual tax brackets, new deduction limits, state and local tax (SALT) phaseouts, and changes to the alternative minimum tax (AMT) can all influence how much you ultimately owe. A year-end income projection helps you plan intentionally rather than react in April.

This is especially important if:

• Your income fluctuates significantly year to year.
• You receive bonuses, equity compensation, business income, or required minimum distributions (RMDs).
• You expect changes to your deductions that could meaningfully shift your tax picture next year.

If 2026 looks like a higher-income or higher-tax year, you may benefit from accelerating income into 2025. That might include year-end bonuses, business receipts, or exercising stock options. Pulling that income forward could help you take advantage of stronger deductions while you still have them.

If 2026 is shaping up to be a lower-income year—perhaps due to reduced work, retirement transitions, or a one-time event—then deferring income or accelerating deductions may be worth exploring. This type of planning becomes even more valuable for pre-retirees who are managing partial-year work, Social Security timing decisions, and Medicare-related tax thresholds.

#2: Choose the Right Healthcare Plan for 2026

With enhanced ACA credits scheduled to expire at the end of the year, healthcare costs are likely to rise for many marketplace users. That makes your 2026 plan choice especially important.

At the same time, OBBBA expands eligibility for Health Savings Accounts (HSAs) beginning next year, allowing many Bronze and Catastrophic marketplace plans to qualify. To take advantage of this expanded access, you must choose a qualifying plan during open enrollment.

HSAs offer significant advantages: tax-deductible contributions, tax-free growth, and tax-free withdrawals for eligible medical expenses, making them valuable for both near-term costs and long-term planning. If you’ve been considering switching to a high-deductible health plan (HDHP), 2025 might be an ideal time to compare your options. The right choice depends on your health needs, expected medical expenses, and eligibility for future HSA contributions.

#3: Use or Lose Flexible Spending Account (FSA) Funds

Many employer FSAs operate on a “use it or lose it” basis, meaning unused funds are forfeited at year-end unless your plan offers a small carryover or grace period. The typical forfeiture rate is astonishingly high. In fact, nearly half of all FSA participants lose money each year simply because they didn’t spend it in time.

Now is your reminder to log in, check your balance, and schedule any eligible expenses before the deadline. Qualifying expenses may include routine medical care, prescriptions, dental visits, eyeglasses, and more. If you have a dependent-care FSA, be sure to review those balances as well.

#4: Take Advantage of the Expanded SALT Deduction for 2025

One of the most talked-about changes under OBBBA is the temporary expansion of the federal SALT deduction. For 2025, the cap increases from $10,000 to $40,000 for both single and joint filers with income of $500,000 or less. Above that income range, the deduction phases out between $500,000 and $600,000 and then reverts to the $10,000 limit.

Here’s why this matters for year-end planning:

• If your income falls under the threshold, you have a temporary window to capture significantly higher deductions.
• It may be beneficial to prepay property taxes or other eligible state and local taxes before December 31, depending on your broader tax picture.
• If you’re close to the phaseout range, timing income can help preserve more of the benefit.

This provision is particularly meaningful for homeowners in high-tax states, second-home owners, and high-income households with large real-estate portfolios.

#5: Consider Front-Loading Charitable Giving

Philanthropy is a cornerstone of many families’ financial plans, and year-end is one of the most strategic times to give. OBBBA introduces two major changes in 2026:

• A 0.5% of AGI floor, meaning only charitable gifts above that threshold will be deductible.
• A 35% cap on the tax value of itemized charitable deductions for high-income taxpayers.

These changes reduce the tax efficiency of large gifts beginning next year. To preserve more of your deduction value, it may be wise to front-load charitable giving into 2025, especially if you plan to make a sizable donation in the coming years.

Popular strategies include:

• Contributing to a donor-advised fund (DAF). You receive the deduction this year and can grant the funds over time.
• Donating appreciated securities. This allows you to avoid capital gains tax while receiving a charitable deduction for the full fair-market value.
• Using Qualified Charitable Distributions (QCDs). If you’re 70½ or older, charitable gifts directly from your IRA count toward your RMD and can reduce your taxable income.
• Leveraging next year’s new above-the-line deduction. Standard-deduction filers will soon be able to deduct a small amount of cash gifts, making small annual gifts more accessible.

#6: Evaluate Energy-Efficient Home Improvements Before the Credit Expires

If home improvements have been on your mind, 2025 could be the year to act. The Energy Efficient Home Improvement Credit is scheduled to expire at the end of 2025, and the current rules allow savings up to $3,200 for qualifying upgrades completed and operational by year-end.

Eligible improvements include:

• New energy-efficient windows and doors
• Heat pumps and heat-pump water heaters
• Insulation upgrades
• Certain electrical improvements
• Home solar installations (with separate credits and limits)

For high-net-worth families with multiple properties, vacation homes, or aging primary residences, these upgrades can serve dual purposes: reducing long-term utility costs and increasing home value, while securing a credit before the expiration date.

However, before moving forward, be sure to run the numbers carefully. The upfront cost of some improvements can be significant, so it’s important to weigh the credit, long-term energy savings, and your plans for the property.

#7: Maximize Contributions to Tax-Advantaged Accounts

Year-end is the last opportunity to fund certain accounts and maximize tax benefits. Don’t forget to review your progress toward 2025 contribution limits and consider topping off where appropriate.

Key accounts to revisit:

• 401(k) or 403(b). Ensuring you reach the annual contribution limit can significantly increase your retirement readiness. If you’re over age 50, confirm you’ve captured your full catch-up contribution.
• Traditional or Roth IRAs. While IRA contributions can be made until April, including them in your year-end planning helps maintain consistency and allows more time for tax-strategy discussions.
• Health Savings Accounts (HSAs). If you have an HSA-eligible plan this year, maximizing contributions is one of your highest-value moves.
• 529 college savings plans. Some states offer year-end income-tax benefits for contributions. Plus, funding the account early increases long-term compounding for beneficiaries.

#8: Take Required Minimum Distributions (RMDs) Before Year-End

If you’re 73 or older, make sure you account for and schedule your required minimum distributions (RMDs) by December 31 to avoid steep penalties. These distributions count as taxable income, so it’s helpful to coordinate them with your broader tax plan, especially if you’re also managing charitable giving, Roth conversions, or variable income.

This year also marks a key shift: the IRS has finalized the rules around inherited IRAs, and most non-spouse beneficiaries who inherited accounts in 2020 or later now need to follow a 10-year payout schedule. For those affected, the first required payout must be taken by December 31, 2025. Missing this deadline can lead to a steep 25% penalty on the amount that should have been withdrawn.

Whether you’re taking your own RMD or navigating the first required withdrawal from an inherited IRA, make sure the distribution is completed and reflected by your custodian before year-end to avoid unnecessary penalties.

A Strong Finish to 2025 Sets the Tone for 2026

Year-end planning creates space to make thoughtful decisions that support the life you want and the goals you’re working toward. These final weeks of 2025 offer an opportunity to fine-tune your taxes, strengthen your financial foundation, and position yourself for a confident start to 2026.

Remember, you don’t have to navigate this on your own. One of the greatest benefits of working with a financial planner is having a partner who anticipates these deadlines, understands the nuances of new legislation, and helps you take advantage of planning opportunities before they disappear.

If you’d like guidance as you review your year-end strategy or want support shaping your plan for 2026, reach out to schedule a conversation. We’re here to help.