Year-End Financial Planning for 2025
As 2025 comes to a close, now is the time to review your financial strategy and make proactive adjustments before year-end. Evaluating your adjusted gross income, maximizing tax efficiency, and optimizing retirement contributions can help position you for a stronger financial outlook in 2026. This season is also ideal for reviewing your Medicare options to ensure your coverage supports both your health and retirement goals. Thoughtful planning today can create long-term stability and confidence for the year ahead.
Year-End Planning Considerations for 2025
- Estimate Your 2025 Adjusted Gross Income (AGI)
Evaluate whether 2025 will be a high or low income year to determine optimal tax and savings strategies. - 2026 Salary Deferral Elections
If you’re eligible for salary deferral in 2026 (such as a 401(k) or 403(b)), your election must be made in 2025. - Tax-Loss Harvesting
For investors at SAS, consider realizing losses before year-end to offset gains. - Tax-Gain Harvesting
In low-income years, it may be beneficial to realize gains at lower capital gains rates. - Withholding Check-Up for 2026
Ensure your tax withholdings are adequate to avoid surprises next year. - State and Local Tax (SALT) Deduction Update
The SALT deduction cap has been raised to $40,000 with a phaseout beginning at $500,000 for married filing jointly.- Consider bunching property tax payments into 2025.
- Pay state estimated taxes before year-end if possible.
- Medicare Open Enrollment
During open enrollment, review your Medicare Part B, D, or Advantage Plan options. - Use-It-Or-Lose-It FSA Accounts
Spend down Flexible Spending Accounts before the year ends to avoid forfeiting unused funds. - Know the Standard Deduction for 2025
Consider bunching deductions (charitable giving, SALT, medical expenses, mortgage interest) to exceed these thresholds.
Filing Status | Standard Deduction Amount |
|---|---|
Single | $15,750 |
Married Filing Jointly | $31,500 |
Head of Household | $23,625 |
Married Filing Separately | $15,750 |
10. Catch-Up Contributions for Ages 60–63
Individuals between ages 60–63 are eligible for 150% of the regular catch-up contribution limits in retirement plans.
Taking time now to review these key areas can help you reduce taxes, optimize savings, and enter 2026 with greater financial clarity. SAS Financial Advisors is always here to guide you through the process.
This website is informational only and does not constitute investment advice or a solicitation. Investments and investment strategies recommended in this blog may not be suitable for all investors. SAS Financial Advisors, LLC and its members may hold positions in the securities mentioned within this newsletter. SAS Financial Advisors, LLC is not responsible for any third-party content referenced.
