Your Top 5 Year-End To-Dos
The final quarter of the year always seems to arrive faster than expected, and 2025 is no exception. Our focus this fall is on helping clients make the most of financial opportunities by addressing them earlier, before the year-end rush. With a little planning now, you’ll have greater flexibility, more peace of mind, and extra time to enjoy the holidays and celebrations ahead.
With that in mind, here are five important items to consider as we head into the last stretch of the year:
1. Required Minimum Distributions (RMDs)
If you are age 73 or older, you are required to take an RMD from your traditional retirement account(s) each year to avoid steep IRS penalties. It has long been common practice for many to wait until December to take these distributions, but we believe there’s a strong case for taking them earlier. In fact, we shared more on this in our article The Case for Taking Retirement Plan Distributions Earlier in the Year.
Accordingly, our goal this year is to have most one-time RMDs paid out by November 1. Taking them earlier helps avoid year-end bottlenecks and leaves room for adjustments if needed. If you’ve typically taken your RMD in December, you may be hearing from your Relationship Manager soon about moving this timing forward.
2. Qualified Charitable Distributions (QCDs)
A QCD is one of the most tax-efficient ways to give. If you are age 70½ or older, you can donate up to $108,000 in 2025 directly from your IRA to a qualified charity. This includes inherited IRAs if the beneficiary is at least 70½. A QCD can be counted toward satisfying your RMD and, because it isn’t included in taxable income, it can lower your overall tax bill. To qualify, the distribution must go directly from your retirement account to the charity.
Processing QCDs takes time, and charities also appreciate receiving funds before the holidays. That’s why it’s wise to handle these earlier in the fall rather than waiting until December. And remember: to receive the tax benefit, you must obtain an acknowledgment letter from the charity for your records, as custodians like Fidelity cannot certify QCD withdrawals.
3. Roth Conversions
A Roth conversion can be a valuable way to create tax-free income for the future, but the strategy works best when planned around your current year income and tax bracket. Taking action earlier in the fall gives us more room to calculate the best amount for your conversion, coordinate with your tax advisor, and ensure the strategy aligns with your overall plan.
4. Maximize Retirement Contributions
Now is a great time to check your retirement savings progress for the year. In 2025, the contribution limits are:
- $23,500 to a 401(k) or 403(b)
+ $7,500 if you’re age 50 or older (or + $11,250 if you’re ages 60-63 thanks to SECURE 2.0) - $7,000 to an IRA
+ $1,000 if you’re age 50 or older
Review your year-to-date contributions and consider increasing deferrals this fall. Small adjustments now can help you make the most of these higher limits before December 31.
5. Gifting to Family & Charities
Gifting can play an important role in reducing the size of your taxable estate over time, making it a useful tool in long-term wealth transfer planning. It can also be a meaningful way to support the causes you care about, whether through direct charitable contributions or by funding a donor-advised fund. Giving appreciated securities instead of cash can be especially tax-efficient, allowing you to avoid capital gains while still providing the full value of your gift.
For many families, gifting is also about helping loved ones when it matters most, whether that’s assisting children as they buy a home, supporting grandchildren with education expenses, or simply sharing resources during their peak earning and spending years.
In 2025, the annual gift exclusion is $19,000 per recipient, meaning you can give up to that amount to as many individuals as you like without incurring gift tax or using lifetime exemption amounts. Completing gifts earlier in the fall helps ensure transfers are processed smoothly, gives time to correct any issues, and allows recipients, whether charities or loved ones, to benefit sooner.
At Means Wealth, our team is here to guide you through each of these opportunities, from RMDs and QCDs to Roth conversions, retirement contributions, and gifting strategies. If you’d like to get started, or simply talk through what makes the most sense for your situation, we are here to help.
