2025 Year-End Planning Checklist

It’s hard to believe 2025 is already coming to a close. The year seems to have flown by. As we head into the final stretch, this is the perfect time to pause, take stock, and make sure your year-end planning is on track.

Whether you’re fine-tuning your retirement goals, exploring tax-saving opportunities, or trying to keep up with the latest updates from the One Big Beautiful Bill Act (OBBBA), there are still some valuable steps you can take before the year ends. Think of this as a helpful reminder list to finish the year strong and start 2026 feeling confident and prepared.

Retirement planning: make the most of this year’s opportunities

There's good news for savers! Contribution limits for retirement accounts are up again this year.

• 401(k) plans: If you’re under 50, you can contribute up to $23,500 to your 401(k) by December 31.

• Super catch-up (ages 60–63): There’s a new “super catch-up” option that lets you contribute an additional $11,250, bringing your total to $34,750.

• Regular catch-up (ages 50–59 or 64+): You can still add $7,500 on top of the standard limit, for a total of $31,000.

Also, keep in mind that inherited IRA rules are becoming stricter in 2025. The IRS will begin issuing penalties for missed required withdrawals, and most non-spouse beneficiaries must empty inherited IRAs within ten years unless you fit into one of the excluded categories. If this applies to you, it’s worth checking in with your financial or tax professional to make sure you’re on track.

Estate planning: stay current on the new rules

There are a few key updates under the OBBBA that could impact your estate and gift planning.

• Estate tax exemption: The high estate and gift tax exemption has been made permanent. For 2025, the exemption is $13.99 million per person or $27.98 million per married couple. In 2026, it increases to $15 million and $30 million, respectively.

• Gift tax exclusion: You can now give up to $19,000 per recipient (or $38,000 per couple) without reducing your lifetime exemption. This is a nice increase from last year’s limit of $18,000.

Don’t miss these temporary OBBBA deductions (2025–2028)

Several new deductions are available for a limited time, and they might be worth exploring while they last:

• No tax on tips up to $25,000 for workers in qualifying occupations (subject to income phaseouts).

• No tax on overtime pay up to $12,500 in qualified overtime earnings.

• Car loan interest deduction up to $10,000 for new personal-use vehicles purchased after 2024 (subject to income limits and other requirements).

• Bonus deduction for seniors: Taxpayers aged 65 and older can claim an additional $6,000 deduction, or $12,000 for a married couple if both qualify (subject to income phaseouts). This might be a good time to consider Roth conversions. 

If you’ve been thinking about taking advantage of clean energy tax credits, don’t wait too long. Some of these credits, including the $7,500 electric vehicle credit, are scheduled to phase out or end this year under the OBBBA.

A quick reminder: you don’t have to do it all alone

There’s been a lot of change this year, and the IRS is still releasing guidance on some OBBBA provisions. If you’re not sure how any of these updates affect your personal plan, now’s a great time to talk it through and maybe do some tax analysis with the new rules in mind.

Sometimes a short conversation can make all the difference, helping you identify new opportunities and avoid potential surprises come tax season. You’ve worked hard this year, and with a little planning, you can wrap up 2025 knowing your finances are right where they need to be.