Your 2025 Year-End Planning Guide

By Cole Bruner, President of Buska Retirement Solutions and Buska Wealth Management

As 2025 winds down, it’s time to make sure your financial life is in order before December 31. Year-end planning gives you the opportunity to reduce taxes, strengthen your retirement savings, and prepare for the year ahead. This year, there’s even more to review thanks to the One Big Beautiful Bill Act (OBBBA), signed into law in July, which introduced several new deductions and planning opportunities.

Here are the key areas to focus on as you wrap up the year.

1. Optimize Taxes and Income

Tax planning is always important, but the end of the year is when small moves can make a big difference. Review your income and deductions to ensure you’re in the best possible tax bracket. Consider harvesting investment losses to offset gains or even taking gains if you’re in a lower bracket.

If you’re thinking about converting to a Roth IRA, now is the time—just remember conversions can’t be undone. Check your withholding and estimated payments to avoid penalties and review potential deductions such as medical expenses that exceed 7.5% of your income.

The OBBBA also created several temporary tax breaks, including new deductions for tip income, overtime pay, and extra deductions for seniors age 65 and older. The state and local tax (SALT) deduction cap has also been temporarily expanded to $40,000 per household for 2025.

2. Strengthen Retirement and Savings

Year-end is the time to confirm you’ve made the most of your savings opportunities. Max out contributions to 401(k), IRA, and HSA accounts, and don’t forget catch-up contributions if you’re age 50 or older. Make sure you’ve taken all required minimum distributions (RMDs) from retirement accounts and consider qualified charitable distributions if you’re age 70½ or older.

Looking ahead, the OBBBA introduces new savings programs starting in 2026, including “Trump Accounts” for newborns and expanded eligibility for HSAs tied to Affordable Care Act plans.

3. Give Strategically

Charitable giving remains one of the best ways to reduce taxes while making an impact. Consider donating appreciated securities, bunching donations, or using a Donor Advised Fund to maximize deductions. The rules for charitable giving will change in 2026, so this year may be the time to make larger gifts under the current, more favorable rules.

4. Manage Cash Flow and Debt

Review your cash reserves and flexible spending accounts to ensure no funds go unused. The OBBBA also introduced a new deduction for vehicle loan interest—up to $10,000 per year for qualifying new cars purchased between 2025 and 2028. If you plan to buy, confirm your vehicle qualifies and complete financing before year-end.

5. Update Estate and Gifting Plans

Before December 31, consider making annual exclusion gifts ($19,000 per person in 2025) and contributing to 529 plans. Review your wills, trusts, and beneficiary designations to ensure they reflect your current wishes. The OBBBA permanently raises the estate tax exemption to $15 million per person in 2026, so now is a good time to revisit long-term strategies.

The Bottom Line

Year-end planning brings opportunities to strengthen your financial position and prepare for upcoming changes. Review your tax, savings, and gifting strategies now to make sure you head into 2026 confident and prepared.