If 2024 felt like a moving target, 2025 brings even more change—new standard deductions, higher contribution limits, and fresh planning opportunities. Use this checklist to lower your bill next April and strengthen your long-term plan.
1) Max out workplace retirement (401(k), 403(b), 457)
- Employee deferral limit (2025): $23,500.
- Catch-up (50+): $7,500.
- Combined employee + employer cap: $70,000.
- Special catch-up for ages 60–63 can be higher if your plan supports it. IRS+1
Why it matters: Every pre-tax dollar lowers your taxable income today; Roth 401(k) favors tax-free withdrawals later.
Heads-up for 2026: high earners (age 50+ with wages ≥ $145,000) must make catch-ups as Roth under SECURE 2.0. Plan accordingly if you count on the pre-tax write-off. New York Post
2) Don’t skip the IRA—even if you have a 401(k)
- IRA limit (2025): $7,000 (catch-up $1,000 at 50+). Deductibility and Roth eligibility depend on income. IRS
Move: If you expect higher future tax rates, consider Roth contributions or partial Roth conversions.
3) Fund your HSA (if you have an HDHP)
- 2025 HSA limits: $4,300 self-only / $8,550 family; plus $1,000 catch-up at 55+. IRS+1
Triple tax advantage: deductible going in, tax-deferred growth, and tax-free for qualified medical expenses.
4) Use the bigger 2025 standard deduction (and bunch when itemizing)
The standard deduction for 2025 increased to $15,750 (single/MFS), $31,500 (MFJ), $23,625 (HOH); additional amounts apply for those 65+ or blind. A new bonus deduction for qualifying older adults may also apply. If your itemizable deductions vary year to year, consider bunching (e.g., time charitable gifts/property taxes) to exceed the standard in alternate years. IRS+1
5) Harvest losses (and rebalance) in taxable accounts
Match capital losses against gains, then up to $3,000 can offset ordinary income. Avoid wash sales: don’t buy a “substantially identical” security within 30 days before/after the sale.
6) Make smarter charitable gifts
- Donate appreciated stock held >1 year to avoid capital gains and still deduct fair market value (if itemizing).
- If you’re 70½+, use a Qualified Charitable Distribution (QCD) from an IRA to give up to $100,000 directly to charity—keeps the income off your return and can help with IRMAA/phase-outs.
7) Nail your withholding and quarterlies now
New brackets + bigger standard deductions mean your 2024 settings may be off. Use the IRS estimator or revisit your W-4 so you’re not lending the IRS money or facing penalties next April. IRS
8) Leverage small-business opportunities (if you file Schedule C/S-Corp)
- Section 179/bonus depreciation timing on equipment/vehicles.
- S-Corp reasonable salary reviews to optimize payroll tax vs. distributions.
- QBI (199A) deduction planning—keep an eye on thresholds and wages/UBIA factors.
9) Consider energy-efficient home credits
Federal credits remain for certain HVAC, windows/doors, and solar/battery projects. Keep invoices/spec sheets; many credits require meeting efficiency ratings.
10) 529 → Roth IRA rollover (special case)
Have leftover 529 funds? SECURE 2.0 allows limited, tax-free rollovers to a Roth IRA for the beneficiary (lifetime cap $35,000, account must be 15+ years old, and annual rollover counts toward the IRA limit). Great way to jump-start a young adult’s retirement savings. IRS+1
Dates to circle
- April 15, 2026: 2025 return due (and final 2025 IRA/HSA contributions for most taxpayers).
- Quarterly estimates: April 15, June 15, Sept 15, Jan 15—avoid underpayment penalties by paying as you go.
Quick action checklist
- Increase 401(k)/403(b)/457 payroll deferral to hit $23,500 by year-end. IRS
- Top off IRA (or plan a Roth conversion while rates are known). IRS
- Max your HSA if eligible: $4,300 / $8,550 (+$1,000 at 55+). IRS
- Decide: standard vs. itemize—bunch deductions if needed. IRS
- Review withholding/quarterlies with 2025 brackets. IRS
- Explore 529→Roth if a beneficiary has leftover education funds. IRS+1
Need a second set of eyes?
If you’re in Southern Utah, we can map these moves to your situation—entity choice, estimated taxes, retirement mix (pre-tax vs. Roth), QBI, and charitable strategies. Book a quick consult and let’s keep more of what matters.
