Top 5 Year-End Financial Planning Tips for a Successful 2025

As the New Year approaches, it’s time to plan for a successful 2025. Before diving into next year’s goals, here are our top 5 tips for finishing out 2024 on the right financial foot.

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1. Maximize Tax Loss Harvesting

You can potentially use up to $3,000 of excess loss to offset other income. Have you optimized your tax loss harvesting strategy?

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2. Flex Plan for Child Care Costs

Claim the dependent care credit for eligible expenses exceeding your FSA contributions. While FSAs cover up to $5,000, the credit applies to $6,000 of expenses for two or more children under 13.

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3. Maximize Retirement Contributions

• For 401(k) plans, ensure you’ve maximized contributions for 2024.
• For ROTH or Traditional IRAs, you have until the tax filing deadline, but why wait?
• Maximize contributions for 2025 in early January to benefit from the time value of money.

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4. Are My Investments Tax Efficient?

Now is a great time to consult your Financial Advisor. Review your portfolio’s tax efficiency and assess the investment vehicles you’re using.

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5. Check Required Minimum Distributions (RMDs)

If you’re:

• 72 (or 73 for those reaching 72 after 2022): Start RMDs by April 1 of the following year.
• 70 ½ (prior to 2020): Follow previous rules.
  Failure to withdraw enough could trigger a 25% excise tax on the shortfall.

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Wishing You a Peaceful Close to 2024

We wish you a happy December and a successful start to 2025. Let us know how we can assist with your tax or financial needs. We’re here to help!