We’re not at the finish line yet, but it’s close enough to see it. With a little over a month left in the year, now is the perfect window to tighten things up and potentially cut your 2025 tax bill.
You don’t need a bunch of complicated tactics, just a handful of smart moves done before Dec. 31 can go a long way under the IRS’s updated rules.
Let’s walk through the biggest opportunities you still have time for.
1. Roth Conversions: More Flexibility for Later
Roth conversions have to be done by Dec. 31 to count for this tax year. Moving money from pre-tax accounts into a Roth means you pay taxes now but lock in tax-free growth going forward.
Why now matters:
Markets are in constant motion, tax rates don’t stay still forever, and Roth dollars give you options later when you may really need them.
2. Charitable Giving: Two Powerful Tools
Donor-Advised Funds (DAFs)
Front-load your charitable giving for the deduction this year, then spread grants out later as you decide where you want your dollars to go. This can help tip the scales toward itemizing.
Qualified Charitable Distributions (QCDs)
If you’re 70½ or older, you can send up to $108,000 directly from your IRA to a qualified charity. It never hits your taxable income and can satisfy your RMD once you’re required to take it.
Both options let your generosity double as smart planning.
3. Max Out Retirement Contributions
We’re not at the December deadline yet, but it always sneaks up. Workplace retirement plans close the door on 2025 contributions at midnight on Dec. 31.
2025 Limits:
- 401(k)/403(b)/TSP: Up to $23,500 (+ catch-up if you’re 50+)
- IRAs: You technically have until April 15, but knocking it out now keeps things simple.
4. How OBBBA Affects Your Planning
The One Big Beautiful Bill Act (OBBBA) passed July 4, 2025, added a few different tax planning opportunities, as well as adjusted the dollar amounts to be used on some of the existing tax strategies.
Here’s what was impacted:
Higher Standard Deduction for Seniors
Bigger deductions mean you may be able to convert more in a Roth conversion and/or you may have to batch multiple years of gifting in order for benefit from itemizing and using this strategy. There are some specific deductions that phase out at different levels of income, so this is important to keep all factors in mind when determining how much to use certain strategies.
Higher SALT Cap
If you have higher State and Local Taxes, you may be able to deduct more than you have previously, causing some people to knock the dust off of the list of deductions and get it ready for future years.
The Bottom Line
You don’t have to wait until the last week of the year to make a difference. A handful of proactive moves done in November and early December can lead to real savings under today’s updated rules.
If you want help running through what should be on your to-do list, we’re here to walk through it with you.
