Year-end is the last opportunity to take many tax-reducing actions for the current tax year. Prioritize items with hard December 31 deadlines: 401(k) contributions, RMDs, tax-loss harvesting, and charitable gifts. Model your projected tax liability before making decisions about Roth conversions or capital gains recognition. Work with a tax advisor to identify the strategies most relevant to your specific financial situation.

Year-End Tax Planning Checklist

Curated by: Rubric Advisors

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Maximize Retirement Contributions

Confirm you are on track to maximize 401(k) contributions — the 2025 limit is $23,500 ($31,000 if age 50+).
IRA contributions (traditional or Roth) can be made until the tax filing deadline, but planning ahead is advisable.
If your employer offers a mega backdoor Roth option, consider maximizing after-tax contributions before year-end.
HSA contributions (if eligible) also have year-end deadlines — the 2025 limit is $4,300 individual / $8,550 family.

Review Tax-Loss Harvesting Opportunities

Identify positions with unrealized losses that could be sold to offset realized capital gains from the year.
Net capital losses exceeding gains may offset up to $3,000 of ordinary income per year, with the remainder carrying forward.
Be mindful of the 30-day wash sale rule when repurchasing substantially identical securities.
Tax-loss harvesting is generally only available in taxable accounts, not retirement accounts.

Evaluate Roth Conversion Opportunities

Low-income years or years with unusually large deductions may present favorable Roth conversion windows.
Converting traditional IRA or 401(k) assets to Roth triggers ordinary income tax but provides tax-free growth going forward.
Model the conversion amount carefully to avoid pushing into a higher marginal tax bracket or triggering IRMAA surcharges.
Roth conversions are irrevocable under current law — consult a tax advisor before proceeding.

Charitable Giving and Bunching

Consider bunching charitable contributions using a donor-advised fund if you alternate between itemizing and taking the standard deduction.
Donating appreciated securities held over one year may allow you to avoid capital gains tax and claim a fair market value deduction.
Qualified charitable distributions (QCDs) from IRAs are available for taxpayers age 70½ and older.
Ensure all charitable contributions are completed and documented by December 31.

Required Minimum Distributions (RMDs)

If you are age 73 or older (under current SECURE Act rules), ensure your RMD is taken by December 31.
First-year RMD recipients may defer until April 1 of the following year, but this doubles up distributions in that year.
Failing to take a required RMD may result in a 25% excise tax on the amount not distributed (reduced from 50% under SECURE 2.0).
Consider whether a qualified charitable distribution can satisfy part or all of your RMD obligation.

Capital Gains and Estimated Tax Review

Review realized capital gains and losses for the year to assess your net tax position before year-end.
If you have significant gains, consider whether additional tax-loss harvesting or charitable giving could offset the liability.
Verify that estimated tax payments or withholding are sufficient to avoid underpayment penalties.
Capital gains harvesting (intentionally recognizing gains in low-income years) may be appropriate in some situations.

Key Takeaways

Year-end is the last opportunity to take many tax-reducing actions for the current tax year.
Prioritize items with hard December 31 deadlines: 401(k) contributions, RMDs, tax-loss harvesting, and charitable gifts.
Model your projected tax liability before making decisions about Roth conversions or capital gains recognition.
Work with a tax advisor to identify the strategies most relevant to your specific financial situation.

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Fee Impact Calculator Growth Visualizer

Maximize Retirement Contributions

Review Tax-Loss Harvesting Opportunities

Evaluate Roth Conversion Opportunities

Charitable Giving and Bunching

Required Minimum Distributions (RMDs)

Capital Gains and Estimated Tax Review

Key Takeaways

Related Topics

Tax-Loss Harvesting: A Complete Guide

Roth IRA Conversion Strategies

Maximizing Your 401(k) Contributions

Maximize Retirement Contributions

Review Tax-Loss Harvesting Opportunities

Evaluate Roth Conversion Opportunities

Charitable Giving and Bunching

Required Minimum Distributions (RMDs)

Capital Gains and Estimated Tax Review

Key Takeaways

Related Topics

Tax-Loss Harvesting: A Complete Guide

Roth IRA Conversion Strategies

Maximizing Your 401(k) Contributions