2025 Year-End Financial Planning Checklist
As we approach the final weeks of 2025, it's the perfect time to review your financial position and take advantage of year-end financial planning opportunities. The recent passage of the One Big Beautiful Bill Act has provided welcome clarity by making the Tax Cuts and Jobs Act rates permanent, allowing us to focus on maximizing your financial well-being in other important areas.
Let's work together to ensure you're taking full advantage of every opportunity available to you in a timely manner before the end of the year.
Contact us to schedule a consultation for personalized guidance.
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Here are the key actions to consider before December 31st:
1. Maximize Your Retirement Contributions
401(k) Contributions - Ensure you have maximized your contributions before year-end:
- 2025 contribution limit: $23,500 (plus $7,500 catch-up for age 50+)
- New for 2025: Enhanced catch-up contribution of $11,250 for ages 60-63
IRA Contributions - You have until April 15, 2026 to contribute:
Consider Roth conversions while tax rates remain favorable
2025 contribution limit: $7,000 (plus $1,000 catch-up for age 50+)
2. Implement Tax-Smart Strategies
Charitable Giving - If you itemize deductions, complete your charitable contributions by December 31st
Annual Gift Tax Exclusion - Take advantage of tax-free gifting opportunities:
- 2025 annual exclusion: $19,000 per recipient ($38,000 for married couples)
- Strategic timing tip: Gift in December and again in January to double your impact for larger gifts like a downpayment on a house
- Consider funding 529 education plans for grandchildren
Required Minimum Distributions (RMDs) - If you turned 73 in 2025:
- First RMD due by April 15, 2026
- Consider taking your 2025 distribution now to avoid doubling up in 2026
3. Review Benefits and Healthcare Planning
Employee Benefits Review - Open enrollment decisions can significantly impact your finances:
- FSA Alert: Use remaining Flexible Spending Account funds before you lose them
- Maximize HSA contributions if eligible - triple tax benefit opportunity
- Review insurance coverage and deductibles for 2026
Family Healthcare Documents - Protect your adult children:
- Update beneficiary designations on all accounts
- Children turning 18 need healthcare power of attorney and HIPAA releases
Disclosures
BLBB does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstances.
Investment advisory services are provided by BLBB Advisors, a Pennsylvania-based investment advisor registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. Additional information about BLBB is available in our current disclosure documents which are available on BLBB’s website (www.blbb.com) or the SEC’s public disclosure database (IAPD) at www.adviserinfo.sec.gov.
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