2025 Year-End Reminders: A Friendly Nudge
The end of the year always seems to arrive faster than we expect. Before the calendar flips to 2026, a little planning now can help reduce surprises in April. Many strategies—such as maximizing retirement plan contributions, taking required minimum distributions, and completing charitable gifts—must be acted on before December 31. To help you stay organized and make the most of available tax benefits, I’ve highlighted key year-end reminders for 2025.
Maximize 401(k) Contributions By 12/31/25
Retirement contributions are one of the easiest ways to reduce your taxable income and your future self will thank you one day for the boost in savings.
For 2025
Under age 50: You can contribute up to $23,500.
Ages 50-59 or 64+: You get an additional $7,500 catch-up contribution.
Ages 60-63: Congratulations, you’ve entered the “super catch-up” zone – up to $11,250 in additional contributions, if your plan allows.
Even if maxing out isn’t feasible, try to contribute enough to take advantage of any employer matching. It’s free money and we all love that.
IRA Contributions: Still Time to Act
If Individual Retirement Accounts (IRAs) are more your speed, here are the limits for 2025:
Under age 50: Up to $7,000
Age 50+: Up to $8,000 (includes the $1,000 catch-up)
The good news is that you have until April 1, 2026, to make your 2025 IRA contribution. And for 2026 contributions, limits will increase slightly.
As always, keep in mind that whether or not your Traditional IRA contributions are deductible may depend on your income and if you (or a spouse) participate in an employer plan.
Don’t Forget Your RMDs (Required Minimum Distributions)
If you’ve reached RMD age, the IRS requires you to start taking withdrawals from your Traditional IRA.
Here is the current age breakdown:
Born before 7/1/49: RMDs start at 70 ½
7/1/49 – 12/31/50: Start at 72
1/1/51 – 12/31/59: Start at 73
After 1/1/60: Start at 75
If you turned 73 in 2025, you have a choice:
Take your first RMD by 12/31/25, or
Delay it until April 1, 2026
Delaying until 2026 means you’ll take two RMDs in 2026, which may lead to a higher tax bill.
Qualified Charitable Contributions (QCDs): A Win-Win
If you’re at least 70 ½, you are eligible to make a QCD, which is a direct transfer from your IRA to a qualifying charity. For 2025, the maximum that may be contributed is $108,000 per taxpayer ($216,000 in total for married taxpayers). Benefits of QCDs:
They count toward your RMD
They’re not taxable
And you get a charitable impact without needing to itemize
Charitable Giving: Last Call For 2025 Donations
If you do itemize, don’t forget that charitable contributions must be made by December 31, 2025, to count for this year. A couple of documentation tips:
Donations of $250 or more: Keep the charity’s acknowledgement letter (or email)
Donations under $250: A regular receipt works
Set Up Your IRS Online Account (It’s Suprisingly Useful)
If you haven’t yet created an online IRS account, year-end is a perfect time to do it. With an account, you can:
View key tax information, including return documents as available (W-2s, certain 1099s)
Check status of refunds
Make and track tax payments
Confirm how payments were applied
Request or manage an Identity Protection PIN (IP PIN) – see my previous blog post for more information
It’s far more convenient than calling the IRS, which given hold times, should always be a last resort. Most states have online accounts as well and the benefits are the same.
Summary
Year-end planning may not be the most glamorous part of the season, but it is one of the most valuable. A few proactive steps now can help lower your tax bill, avoid penalties, and set yourself up for a confident start to 2026. If you have questions or want help navigating these items, I’m here to make the process easier (and a little less stressful).
Best wishes for a happy holiday season!