End-of-Year Money Moves Everyone Should Consider 

As the year winds down, it’s a smart time to take stock, not just of where you’ve been, but of where you want to go in the year ahead. Whether you’ve experienced big life changes in 2025 or simply want to tighten up your finances, there are strategic “finish-line” moves that can influence your tax outcome, cash flow, and long-term wealth trajectory. 

Below is a checklist of year-end actions to consider. As always, consult your tax, legal, or wealth advisor before making moves. 

1. Review What’s New This Year 

Before diving into specific year-end tactics, it helps to understand what’s changed recently, especially under the 2025 tax environment. 

• The One Big Beautiful Bill (OBBB), enacted in mid-2025, introduced permanent changes and expansions affecting high-net-worth individuals, especially in estate, gifting, and deduction limits.  

• One of the headline changes: the federal estate and gift tax exemption is now set at $15 million per individual ($30 million for married couples), indexed for inflation going forward.  

• The State and Local Tax (SALT) deduction cap has been temporarily raised (2025–2029) to $40,000, subject to phase-outs for high MAGI filers.  

• Contributions limits and brackets have been adjusted for inflation in 2025; for example, the individual 401(k) limit is $23,500, and IRA contributions remain $7,000.  

These changes reshape how year-end moves should be prioritized and executed. 

2. Maximize Tax-Advantaged Savings Before Year’s End 

Even if you’ve already received a high income this year, there may still be room to reduce taxable income via retirement contributions and other vehicles. 

• Consider maxing out retirement plans. For 2025, employees under age 50 can contribute up to $23,500. If you’re age 50 or older, the catch-up contribution remains $7,500.  

• Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs). If you’re eligible, maxing these out can deliver tax-deductible contributions and tax-free medical expenses. 

• Non-qualified deferred compensation (NQDC) or profit-sharing plans (for business owners). If your business allows, deferring income into these vehicles before year’s end may reduce current-year tax exposure.  

3. Harvest Losses & Realize Gains Strategically 

The interplay between gains and losses can be a powerful lever—if timed correctly. 

• Tax-loss harvesting: You may sell positions that are in a loss to offset realized capital gains from other investments. The IRS still allows up to $3,000 of net capital losses to be deducted against ordinary income per year (or $1,500 if married filing separately).  

• Losses beyond that can be carried forward indefinitely (i.e., you can use them in future years). 

• Timing your gains: If you anticipate being in a higher tax bracket or face more gains next year, consider deferring sales to 2026 (if possible). Also, examine how short-term gains (taxed as ordinary income) vs. long-term gains (0%, 15%, 20%) may impact your effective rate. 

• Be mindful of wash-sale rules: don’t repurchase “substantially identical” securities within 30 days, or the loss could be disallowed.  

4. Charitable & Gifting Moves That Still Pack Punch 

Philanthropy and legacy planning remain powerful year-end levers, especially under new law. 

• Donor-Advised Funds (DAFs): Contribute appreciated securities directly into a DAF to avoid triggering capital gains taxes, while receiving an immediate deduction. You can then grant from the DAF over multiple years. 

• Qualified Charitable Distributions (QCDs): If you are 70½ or older, up to $100,000 per year can be distributed from your IRA directly to a charity—bypassing taxable income.  

• Annual gifts to family or trusts: Under OBBB, the generous lifetime exemption and the higher SALT cap make gifting and trust-based moves more potent. Use your 2025 planning window to make annual exclusion gifts or structure partial transfers to trusts. 

5. Review & Adjust Withholding, Estimated Taxes, and Payroll 

To avoid harsh surprises (like underpayment penalties or big tax bills), review your withholding and estimated payments before year-end. 

• If your W-4 is under-withholding relative to your income trajectory, consider increasing withholding for December or making an additional estimated tax payment. 

• Business owners should ensure estimated tax payments are aligned with projected profits. 

• For S-Corp or partnership owners, check distributions vs. salary structure to ensure you’re not over- or under-withholding payroll taxes. 

6. Check & Update Your Estate Plan / Beneficiary Designations 

Your legal and estate docs should reflect the reality of your relationships, goals, and tax environment. 

• Beneficiary designations: Make sure IRAs, 401(k) plans, life insurance policies, and other accounts have up-to-date and correct beneficiaries—especially in light of marriages, divorces, births, or deaths. 

• Will and trust review: Confirm that your will remains valid under current law. If you have trusts (revocable or irrevocable), consider whether their structure is optimal under OBBB. 

• Consider leveraging your new exemption: With the $15 million exemption (per individual), explore whether additional lifetime gifting or trust-funding should be accelerated in 2025.  

7. Business-Specific Moves for Owners & Entrepreneurs 

If you run or own a business, here are extra levers you can pull before year’s end: 

• Accelerate or defer business income or expenses. If your business revenue is strong in 2025, you might defer invoices until early 2026 or accelerate deductible expenses (equipment, repairs, supplies) into 2025. 

• Qualified Business Income (QBI) deduction / pass-through strategies. Review whether you are optimizing use of the 20% deduction (if applicable), and whether business structuring (S-Corp, LLC, partnership) is still optimal. 

• Depreciation and Section 179 / bonus depreciation: If you’re making capital expenditures, check that you’ve claimed appropriate cost recovery methods. Taking bonus depreciation in 2025 might reduce your ordinary income. 

• Retirement plan design for your business: If your business can sponsor a profit-sharing plan, defined benefit plan, or cash-balance plan, consider adopting or topping up before year-end to accelerate tax-deductible contributions. 

• State and local tax planning (SALT): Given the temporarily elevated SALT cap, there may be options involving trusts or restructuring your state exposure to better absorb state tax deductions.  

Are You Ready for the End of the Year? 

The end of the year offers a rare opportunity: a compressed window to crystallize actions that can shape your tax liability, legacy, and financial momentum into the future. By combining aggressive, well-timed moves with gains/losses, charitable strategies, gifting, and business structuring you can potentially enhance both near-term and long-term outcomes. 

If you’d like to review your situation side by side with a tax-aware wealth advisor, we’d be glad to help you apply or refine these strategies in a way that’s helps your pursue your goals. Reach out before the calendar turns! 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  

This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations. 

No strategy assures success or protects against loss.