As we head into the final stretch of the year, it’s the perfect time to review your financial picture and make strategic moves that can benefit you both now and in the future. Here are some key areas to focus on before December 31st.
Maximize Your Retirement Contributions
If you haven’t already maxed out your 401(k) or IRA contributions, there’s still time. For 2025, you can contribute up to $23,500 to your 401(k) (or $31,000 if you’re 50 or older). Traditional IRA and Roth IRA limits are $7,000 ($8,000 if 50+). These contributions can reduce your taxable income while building your retirement nest egg. Not sure which account makes the most sense for your situation? David Ellis can help you develop a contribution strategy aligned with your long-term goals.
Review Your Investment Portfolio
Year-end is an ideal time to rebalance your portfolio and consider tax-loss harvesting opportunities. If you have investments that have declined in value, selling them strategically can offset capital gains and reduce your tax liability. This requires careful planning to avoid wash-sale rules, so professional guidance is essential.
Update Your Estate Plan
When was the last time you reviewed your estate plan? Life changes like marriages, births, divorces, or significant changes in assets should trigger an estate plan review. Additionally, tax laws and estate exemption amounts can shift, potentially affecting your strategy. Robyn Ellis can ensure your estate plan reflects your current wishes and takes advantage of available tax benefits.
Consider Charitable Giving Strategies
If philanthropy is important to you, year-end giving can provide tax advantages. Consider strategies like qualified charitable distributions (QCDs) from your IRA if you’re over 70½, donor-advised funds, or bunching multiple years of donations into one tax year. These approaches can maximize both your impact and your tax efficiency.
Don’t Forget Required Minimum Distributions
If you’re 73 or older, you must take your RMDs by December 31st (except for your first RMD, which can be delayed until April 1st of the following year). Missing this deadline results in steep penalties—50% of the amount you should have withdrawn. The good news? At Vested Partners, we manage RMD calculations and distributions for our clients, so you don’t have to worry about doing the math yourself or missing critical deadlines.
Taking Action
The end of the year brings both opportunities and deadlines. At Vested Partners, we help clients navigate these decisions with confidence. Whether you need comprehensive financial planning or estate planning expertise, we’re here to ensure you start the new year on solid financial footing.
Call our office at (540)389-6060 or visit our website to schedule a consultation and make the most of the time remaining in 2025.
