7 Critical Year-End Money Moves

The year is winding down, which means the clock is ticking on several key financial deadlines.

What’s more, if you’re near the Retirement Red Zone (within 10 years before or after retirement) your year-end financial decisions carry higher stakes and lasting consequences.

To help you, we’ve compiled a short list of key action items to review before December 31, and provide a detailed Year-End Financial Planning Checklist containing 18 TIME-SENSITIVE considerations to help ensure nothing slips through the cracks.

Begin by asking yourself these questions. 

Are you:

• Maximizing your savings?
• Minimizing your tax bill?
• Feeling financially confident?

If any of these questions made you pause, you’re in the right place. 

The following seven money moves are part of our 365 Retirement Plan Process, a strategic approach that helps you stay organized, proactive and confident about your financial future ALL YEAR LONG. 

Let’s get started!

 

#1—Revisit Retirement Plan Contributions

If you’re still working, consider increasing your 401(k) and IRA contributions before year-end. 

Even a small bump can help lower your taxable income while boosting future retirement income. Plus, if it comes with an employer match—that’s FREE MONEY!

(As an aside, now is also a good time to determine or update your Portfolio Income Needs (PIN)—a core part of our 365 Retirement Plan Process. Your PIN represents how much income your investments need to generate to support your lifestyle in retirement. Use our PIN calculator to determine your initial PIN.)

Also, don’t forget about Health Savings Accounts (HSAs).* 

HSAs offer a triple tax advantage: contributions are tax-deductible, growth is tax-free and withdrawals for qualified medical expenses are tax-free. Maxing out this account LOWERS YOUR TAXABLE INCOME and strengthens your retirement plan.

2025 HSA contribution limits include:

• Individual: $4,300
• Family: $8,550

If you’re age 55 or older, you can contribute an additional $1,000 “catch-up” contribution. 

*Remember, HSAs are only available for those with high-deductible health plans.

 

#2—Consider Tax-Loss Harvesting

If some of your investments have declined in value, you may be able to sell them to offset capital gains elsewhere in your portfolio. 

This can help reduce your tax bill for the year. HOWEVER, watch out for the wash-sale rule, which restricts repurchasing the same investment too soon.

The wash-sale rule prevents investors from claiming a tax deduction for a loss on a security if they buy a “substantially identical” security 30 days before or 30 days after the sale date. 

 

#3—Delay Income if Nearing a Higher Tax Bracket

If you’re close to moving into a higher tax bracket, it might make sense to defer income (e.g., bonuses or self-employment payments) until January. 

For Example:

Suppose you’re a consultant filing single for tax year 2025, and an additional $5,000 payment would push you into a higher tax bracket. In this case, delaying receipt of that income until 2026 could help lower your 2025 tax bill.

Here’s a simple scenario:

Taxable Year	2025
Base Income	$100,000
Additional Payment	$5,000
Total 2025 Income	$105,000 if received in December;  $100,000 if received in January (payment shifts to 2026).
Highest Marginal Tax Bracket 2025	24% if total hits $103,351; 22% if total stays at $100,000.
Tax Rate on $5,000	If received in 2025: first $3350 taxed at 22%, remaining $1650 taxed at 24%. If received in 2026: taxed based on next year’s income and bracket.
Tax Implication	Receiving payment in December 2025 could trigger a higher tax bill. Delaying to January 2026 may help avoid the 24% bracket for 2025.

*2025 Federal Income Tax Brackets, Single Taxpayer: 22% ($48,476–$103,350), 24% ($103,351–$197,300)

Rule-of-Thumb for Delaying Income:

Deferring income (like a bonus or final payment) generally works best when you’re trying to “level out” your earnings between two tax years.

Delay it if: You expect your total income to be stable or lower next year. 

Take it now if: You expect much higher earnings next year. 

Overall, you’re trying to move income to the year where it faces the lowest possible marginal tax rate.

 

#4—Review Major Life Changes

Big life changes can alter everything from your tax filing status to your insurance needs to how much income you’ll actually need in retirement.

Here are a few milestones worth reviewing before year-end:

Birth or Adoption of a Child or Grandchild: An addition to your family requires key actions, including: 

• Adjusting tax withholdings.
• Amending dependents on tax forms.
• Establishing a 529 college savings plan.
• Reviewing life insurance policies. 

RELATED: Massachusetts and Rhode Island both offer a state income tax deduction for 529 plan contributions. Fidelity provides a helpful round-up for participating states.

Buying or Selling a Home: Real estate moves can trigger capital gains and alter deductions. 

Career Change or Retirement: A new job can mean a different retirement plan or new stock options program. Retirement or semi-retirement might change your income sources entirely, which means it’s time to recheck your PIN to help ensure your withdrawals line up with your spending needs.

Loss of a Loved One: The passing of a loved one can bring both emotional and financial transitions, including inheritances, beneficiary updates and possible changes to RMDs if you’ve inherited an IRA.

Marriage or Divorce: A change in marital status can shift your filing status, tax brackets, and eligibility for certain deductions and credits. You may also need to revisit beneficiary designations on retirement accounts, insurance policies and estate plans.

 

#5—Capitalize on New OBBBA Laws

Signed into law July 2025, the One Big Beautiful Bill Act (OBBBA) has introduced powerful—yet often temporary—new tax provisions that may require year-end planning. 

This law makes the 2017 TCJA tax brackets permanent while creating several new deductions, including an enhanced $6,000 senior deduction and new breaks for tip and overtime income (all three are temporary).

For many high-tax-state residents, the SINGLE MOST IMPACTFUL CHANGE is likely the temporary increase in the State and Local Tax (SALT) deduction cap. 

Previously limited to $10,000, the cap is now raised to $40,000 for itemizing taxpayers who fall under the income threshold (which starts phasing out at a Modified Adjusted Gross Income (MAGI) of $500,000). 

This change alone could dramatically reduce your federal tax bill. 

However, this relief is TEMPORARY and is scheduled to end in 2030.

RELATED: For more details, read our blog post: Understanding The Tax Implications Of The One Big Beautiful Bill Act.

 

#6—Make Year-End Charitable Gifts (Use Your RMDs)

Year-end is a great time for giving, but for those aged 73 and older, it’s also a time for smart tax planning using your Required Minimum Distributions (RMDs).

The most tax-efficient way to give is often through a Qualified Charitable Distribution (QCD). If you are 73 or older and must take an RMD from your IRA, you can donate up to $108,000 directly to a qualified charity for tax year 2025. 

This donation counts toward your RMD requirement but is not included in your AGI. This maneuver lowers your AGI, which can reduce your exposure to Medicare surcharges (IRMAA) and taxes on your Social Security benefits.

For larger, more strategic giving, consider leveraging appreciated assets and Donor-Advised Funds (DAFs):

Appreciated Assets: Instead of selling a stock or mutual fund that has risen significantly in value and then donating the cash (which triggers capital gains tax), you can donate the asset directly to charity. You get a deduction for the full fair market value of the asset (subject to AGI limits) and avoid paying capital gains tax on the appreciation. These benefits require holding the assets for at least one year.

Donor-Advised Funds (DAFs): A DAF is an account specifically for charitable giving. You contribute assets (cash or appreciated stock) to the DAF now, claiming the tax deduction immediately. The assets grow tax-free, and you decide which charities receive grants from the fund later. This allows you to “bunch” several years’ worth of donations into a single year to maximize your itemized deduction in that year, while distributing the money over time.

 

#7—Seek Professional Financial Advice (& Download Year-End Checklist)

Year-end financial tasks can sometimes feel overwhelming.

If you’re figuring out RMDs for the first time or debating whether to push income into next year, the calculations can get complex fast.

This is where Rubino & Liang shines. 

Approachable, candid and responsive, we help you optimize income, reduce taxes and invest smarter. After all, your retirement plan should be designed to work EVERY DAY OF THE YEAR so you don’t have to.

Fill out the form below and schedule an introductory phone call today.

And don’t forget to download our Year-End Financial Checklist to make sure you’ve covered the most important action items for 2025.