As the year draws to a close, AMAC members have a valuable opportunity to review their financial plan and take advantage of tax-efficient strategies before key deadlines expire. A thoughtful year-end checkup can help reduce your tax burden, support causes you care about, and strengthen your long-term retirement outlook.
RoseMark Advisors, AMAC’s financial services division, prepared this checklist to help you finish the year with clarity, purpose, and confidence.
1. Maximize Tax-Advantaged Retirement Contributions
If you haven’t yet reached the contribution limits on your 401(k), IRA, or other retirement accounts, consider making additional deposits before year-end. Increasing tax-deferred contributions may reduce your taxable income today while building future retirement security.
The 2025 maximum contribution limits for retirement tax-advantaged accounts are:
- IRA: $7,000 (or $8,000 if you’re 50 or older)
- 401(k): $23,500 (Those 50 and older can contribute an additional $7,500. Those between 60-63 can contribute an additional $11,250)
Deadline: 401(k) contributions must be made by Dec. 31, 2025. IRA contributions for the 2025 tax year can be made until April 15, 2026.
2. Consider a Strategic Roth Conversion
Converting a portion of a traditional IRA to a Roth IRA can be especially advantageous in a low-tax year. You’ll pay taxes on the converted amount now, but future withdrawals (if rules are met) grow tax-free and Roth accounts are exempt from required minimum distributions (RMDs).
For higher-income earners, a backdoor Roth strategy may also be an effective alternative. This is a time-sensitive decision that benefits from careful planning and tax review.
Deadline: A pre-tax Roth conversion or a backdoor Roth must be finalized by Dec. 31to count for the 2025 tax year. Even if you don’t complete a conversion in 2025, you have until April 15, 2026, to make IRA contributions for the 2025 tax year, and you could always convert in 2026.
3. Ensure Your Required Minimum Distributions (RMDs) Are Complete
If you’re age 73 or older, the IRS requires that you withdraw RMDs from eligible retirement accounts before December 31. Failing to act may lead to substantial penalties.
If you don’t need the funds for income, this may be a chance to redirect the amount toward a charitable purpose instead.
Deadline: Withdraw the correct RMD amount from the necessary retirement accounts by Dec. 31, 2025 to avoid tax penalties. If you recently turned 73, you may have until April 1, 2026, to make your withdrawal for 2025, but you would still need to take your 2026 RMD by Dec. 31, 2026.
4. Use Charitable Giving to Reduce Taxes and Support What Matters
Qualified Charitable Distributions (QCDs)
For members age 70½ or older, a QCD allows you to donate directly from your IRA to a qualified nonprofit, including the AMAC Foundation, without adding to your taxable income. A QCD can also satisfy your RMD.
Traditional Charitable Gifts
If you plan to itemize deductions, year-end is a smart time to complete charitable contributions and potentially reduce your 2025 tax liability.
Deadline: Make your charitable gift or QCD by Dec. 31, 2025, for the 2025 tax year.
5. Review Investments: Harvest Gains or Losses, and Rebalance
Year-end is an ideal moment to review your portfolio’s performance and overall allocation. You may benefit from:
- Tax-loss harvesting to offset gains
- Harvesting gains strategically if you expect to remain in a favorable tax bracket
- Rebalancing to ensure your portfolio stays aligned with your long-term goals and risk tolerance
Deadline: Dec. 31, 2025, to have your harvested gains or losses count for the 2025 tax year.
6. Reflect on Your Financial Goals and Retirement Security
Your goals, tax situation, and retirement needs are unique, and so is your financial plan. You may want to ask yourself:
- Are there any steps I can take before the end of the year to meet my financial goals?
- Do I need to adjust or amend any of my financial goals?
- Are there any new financial goals that I can start making progress on?
A year-end review ensures you’re making the most of available opportunities and entering 2026 with a strong, well-coordinated strategy. Our expert team is here to assist you in completing essential year-end financial tasks, providing the support needed to finish the year strong and continue progressing toward your financial goals.
Deadline: Many of these actions must be completed by December 31 to count toward your 2025 tax return. Don’t wait, now is the time to act.
Questions to ask during your initial complimentary consultation with our expert Financial Planning team:
- Which of the financial actions listed in this article should I consider before the year ends?
- Does it make sense for me to consider tax-loss harvesting or tax-gain harvesting in 2025?
- Should I initiate a Roth conversion or backdoor Roth this year?
Schedule your complimentary consultation with a RoseMark Advisor today! Our experts are standing by, ready to help reduce your tax burden for 2025.
If you prefer to schedule by phone, please call us today at 888-730-6565!
