Simple Year-End Tax Moves for 2025: Harvest Losses, Give Smart, and Boost Retirement Savings

Money can feel complicated. Our job is to make it simple and useful for your life. Below is a short, clear playbook of tax ideas you can still use before December 31, and a couple to prepare for next year. Use what fits your situation. Skip what doesn’t. And remember: plans are marathons, not sprints.

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1) Harvest losses the right way

If you own an investment in a taxable account that’s worth less than what you paid, you can sell it and “harvest” the loss.

• Losses first offset any gains this year.
• If you still have up to $3,000 of net losses left, they can reduce your ordinary income.
• Unused losses carry forward into future years.

Two key points:

• Stay invested. You can swap into something similar (not identical) so your plan keeps working.
• Watch the wash-sale rule. If you sell and buy the same security within 30 days, the IRS disallows the loss. Pick a similar fund or stock instead, not the exact one. 

2) Consider “direct indexing” for ongoing tax control

Direct indexing holds many individual stocks to mirror an index. That gives you more chances to harvest losses over time while still aiming for long-term growth. It’s often a fit for taxable accounts around $250,000+ and does come with added fees and some “tracking error” versus the index. The main idea: build a pool of carry-forward losses that can help when you later sell a business, a rental, or other appreciated

3) If you’re 70½+, give to charity straight from an IRA (QCDs)

A Qualified Charitable Distribution (QCD) lets you send money from your IRA directly to a qualified charity if you’re at least 70½. That amount doesn’t show up as income to you. This can be cleaner than giving cash, especially if you don’t itemize deductions, and may help with income-based thresholds (like Medicare IRMAA). Important: the check must go from the IRA custodian to the charity—not to you first. 

4) Max out retirement plan contributions (and use catch-ups)

Look at your last paychecks of the year. Can you bump up your 401(k) or 403(b) deferrals? If you’re 50+, make use of catch-up contributions on top of the normal limit. If you’re ages 60–63, some plans now allow a “super catch-up”—the greater of $10,000 or 150% of the standard catch-up—if your plan has adopted it. If you expect a year-end bonus, ask payroll whether you can defer part or all of it into the plan.

Always get your employer match first (for example, contribute at least 4% if the match is up to 4%). Then layer on the catch-ups.

5) Heads-up: Roth catch-ups for higher earners

For higher earners (over $145,000 of wages), future catch-up contributions are slated to be Roth catch-ups. That means you’ll pay tax on those contributions now, but enjoy potential tax-free growth later. Roth money also avoids required minimum distributions for the original owner. For many families, paying some tax now to get more Roth later is a win—especially if heirs will inherit the account. Plan for this change so it doesn’t surprise you.

6) Close to itemizing? “Bunch” your deductions

Add up your likely itemized deductions:

• Mortgage interest
• State and local taxes (remember the cap)
• Charitable gifts

If you’re near the threshold, consider bunching: make two or three years of planned gifts in one calendar year to push you over the line. For example, if you planned to give $5,000 each year for three years, you might give $10,000 or even $15,000 this year if cash flow allows. You could then take the standard deduction next year. This simple timing move can increase your tax benefit without changing your total giving.

7) A simple giving boost coming next year

Even if you don’t itemize, households are expected to get a small above-the-line deduction next year for cash gifts to qualified public charities—$2,000 for married couples and $1,000 for single filers. Details matter: it must be cash and to qualified charities (not donor-advised funds). Time your gifts thoughtfully: bunching may help this year, while the above-the-line benefit may help next year.

Two closing thoughts

1. Don’t let the tax tail wag the dog.
2. Taxes matter, but your plan and your life goals matter more.

Small moves, done on time, add up. Pick one or two steps you can take this week. If you want help tailoring these ideas to your situation, we’re here.