Key Deadlines for RMDs, 401(k)/IRA Contributions, Gifting, and 529 Funding
As the year comes to a close, now is the perfect time to make sure your financial house is in order. Between market changes, tax updates, and new rules under the One Big Beautiful Bill Act (OBBBA) taking effect next year, a quick year-end review can help ensure you stay on track toward your long-term goals.
Here’s a helpful checklist of key items to review — and complete — before December 31, 2025.
1. Required Minimum Distributions (RMDs)
If you’re age 73 or older, you must take Required Minimum Distributions (RMDs) from your traditional IRAs, 401(k)s, and other qualified retirement accounts by December 31.
Missing an RMD can trigger a steep penalty — up to 25% of the amount not withdrawn — so it’s critical to double-check that all accounts are covered.
Planning tip:
If you don’t need the income from your RMD, you can make a Qualified Charitable Distribution (QCD) directly to a qualified charity. A QCD satisfies your RMD requirement and keeps that amount off your taxable income, which can also help reduce Medicare premium surcharges (IRMAA).
2. Maximize 401(k) and IRA Contributions
For 2025, you can contribute up to $23,000 to your 401(k) (plus an additional $7,500 if you’re age 50 or older). Contributions must be made through payroll by year-end.
For IRAs, the contribution limits are $7,000 per individual (plus $1,000 for those age 50 and older), and you have until April 15, 2026, to make 2025 IRA contributions.
Planning tip:
Consider whether a Roth conversion makes sense before December 31. Converting part of your IRA to a Roth in a lower-income year can create long-term tax-free growth and help manage future RMD obligations.
3. Complete Annual Gifting
The annual gift tax exclusion allows you to give up to $18,000 per person ($36,000 for married couples) in 2025 without triggering any gift or estate tax reporting.
Planning tip:
Gifting to children or grandchildren can reduce the size of your taxable estate and provide financial help for major milestones such as education or a first home. Gifts made before year-end count for 2025 and can be part of a multi-year family gifting plan.
4. Fund 529 College Savings Plans
Contributions to 529 plans can grow tax-free when used for qualified education expenses — and many states also offer a state income tax deduction or credit for contributions made by December 31.
Planning tip:
Parents and grandparents can “superfund” a 529 plan by contributing up to five years’ worth of annual exclusion gifts at once ($90,000 per donor, $180,000 per couple in 2025), allowing assets to grow faster for future education needs.
5. Review Charitable Giving and Tax Planning
With charitable deduction rules changing under the OBBBA beginning in 2026, this may be a good year to accelerate giving. Itemizers can benefit from higher deduction values in 2025, while non-itemizers may soon be able to take a new above-the-line charitable deduction next year.
Planning tip:
If you plan to “bunch” charitable gifts or contribute to a Donor-Advised Fund (DAF), complete those transfers before December 31 to lock in your 2025 deduction.
6. Check Beneficiaries and Account Titles
Review the beneficiaries listed on your retirement accounts, insurance policies, and trusts to ensure they align with your current estate plan. Life events — marriages, divorces, or new grandchildren — often mean updates are needed.
The Takeaway
Year-end planning is about more than just meeting deadlines — it’s about keeping your plan proactive and tax-efficient. With several key changes on the horizon for 2026, making strategic moves before December 31 can help you save on taxes, maximize contributions, and strengthen your financial foundation heading into the new year.
Have questions about your year-end checklist or want help reviewing your tax and retirement plan before December 31? Contact our team — we’re here to help you finish the year strong and start 2026 with confidence.
