4 End-of-Year Tax Planning Strategies for 2025
Written by
Chris Adam
Edited by
Rebekah Evans
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It’s likely not your favorite subject to think about — but now may be a great time to start considering end-of-year tax planning strategies. You could even start small and then look at more complex actions as the year progresses.
To help you begin, here are four expert-backed strategies to consider.
Maximize Retirement Contributions
Sarah Place, president and CEO of Place Trade Financial, is among the experts who suggest you maximize retirement plan contributions as an end-of-year tax planning strategy. This can include your 401(k) plan, IRA and Roth IRA, among other options.
Place said such recommendations are for general informational purposes only and don’t constitute tax advice. As always, it’s probably best to speak with an advisor before taking action.
Take Required Minimum Distributions (RMDs)
Place said another strategy to consider is taking your RMDs and qualified charitable distributions. You can help avoid significant IRS penalties by taking any RMDs out of your retirement accounts before the end of the year. You may also look at using qualified charitable distributions to donate some of your RMD directly to charity, reducing your adjusted gross income.
Maximize Workplace Benefits
Think about your employer benefits as you consider end-of-year tax planning strategies. Place said to review flexible spending accounts and spend down balances to avoid forfeiting unused funds. Another area to consider is health savings account (HSA) contributions — which can offer many tax-advantaged options for medical expenses. Place said you might also consider investing unused balances.
Consider Business and Personal Property
According to Andrew Gradman, founder of the Law Office of Andrew L. Gradman, if you have a business that owns depreciable personal property, it’s good to take a close look at the circumstances surrounding how you bought or built that property in or after January 2025. You may be able to use larger deductions than expected for bonus depreciation and first-year expensing.
“Attention to this issue is always important,” Gradman said. “However, for both 2024 and 2025, some extra effort will be necessary, due to the interplay between the 2017 tax law and the 2025 tax law.
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