Don’t Get Spooked by Taxes: Year-End Planning Tips

Julia Carlson |
Categories
Retirement
Retirement Planning
Retirement Distribution
Tax Planning
Tax Strategy
Taxes
RMD
Charity; Giving

As the leaves change and pumpkins appear on porches, it’s also time to think about year-end tax planning. While the word “taxes” may sound scary, the truth is October through December is the best time to get ahead of the IRS deadlines. With a few smart moves before December 31st, you can save money and feel more confident heading into 2026. 

Why Plan Before Year-End? 

Think of tax planning like carving a pumpkin: the best results come when you prepare ahead of time. Many strategies only work if they’re done before December 31st, so waiting until spring to act is often too late. 

Tricks (That Are Actually Treats) 

Here are some year-end moves that could sweeten your financial picture: 

  • Fill up your retirement bucket 
    Boosting your 401(k) or IRA contributions before the year ends helps you save for the future while trimming today’s tax bill. 
  • Consider whether a Roth conversion is right for you 
    Converting traditional IRA funds to a Roth can feel like paying a “treat tax” today, but it may set you up for tax-free income later. 
  • Harvest your losses 
    Just like gathering fall leaves, selling investments that have dropped can offset gains elsewhere and potentially reduce your taxes. 
  • Charitable giving 
    Making donations before year-end isn’t just generous, it can also lower your taxable income. Bonus: donor-advised funds can give you immediate tax benefits while expanding your future charitable impact. 
  • Required minimum distributions (RMDs) 
    If you’re 73 or older in 2025 or have inherited an IRA, make sure you take what’s required. Skipping this step can come with a penalty scarier than any Halloween movie. 

Keep It Simple 

You don’t need a cauldron full of complicated strategies to make a difference. Even one or two of these steps can help you enter the new year with a lighter tax bill and a stronger financial plan. 

Don’t let taxes haunt you in April. By planning now, you can turn October’s “tricks” into financial “treats” and start 2026 on the right foot. 

Want to unwrap your year-end opportunities? Schedule a complimentary call with our team today, and let’s make sure you head into the new year without any tax-time frights. 

Julia Carlson is the Founder and CEO of Financial Freedom Wealth Management Group, and a registered representative with LPL Financial. Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.  

Information in this material is for general information only and not intended as investment, tax, or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.