Smart Year-End Moves for Your Financial Plan
As we approach the end of 2025, many familiar rules in U.S. tax and financial planning have either changed or are on the verge of change.
At Meramec Financial Planners (MFP), we believe this is one of the most opportune times for clients to work proactively with their advisor so that the year-end isn’t just a dash to file forms, but rather a chance to make strategic decisions that can benefit years to come.
The Changing Landscape of 2025
Several major shifts are in motion as we close out 2025. Some tax provisions that were scheduled to expire have been extended; others may still revert, and certain planning windows are narrowing.
For example, the One Big Beautiful Bill Act (OBBBA), signed earlier this year, extended many key elements of the Tax Cuts and Jobs Act (TCJA), providing more stability for income tax planning.
At the same time, certain deduction caps and thresholds, such as the state and local tax deduction (SALT) cap, have been temporarily increased, providing taxpayers with a limited window to take full advantage.
High-net-worth individuals should also be aware that estate and gift tax exemptions, qualified business income deductions (QBI), retirement-account conversions, and other “big picture” items are being revisited.
All of this means the traditional “wait until December 31” approach is riskier than ever. Being proactive today can help you stay ahead of the curve.
How Meramec Financial Helps You Plan Ahead
At Meramec Financial Planners, our mission is to help families navigate their financial lives with clarity and confidence.
Beyond investment and wealth management, we offer thoughtful tax, estate, risk, and business planning strategies that ensure every aspect of your financial picture works in harmony.
As 2025 comes to a close, now is the time to ask key questions.
- What tax brackets and deductions apply to me this year?
- Are there opportunities to accelerate or defer income, deductions, capital gains, or conversions? Should my business or pass-through entity election (or PTE tax) be reviewed?
- Is my estate plan still aligned with current laws, including recent shifts in exemptions and gift strategies?
- Are there charitable or philanthropic vehicles I should take advantage of before the deduction rules change?
Many of these moves take time and coordination with CPAs, attorneys, and advisors—making early action essential.
End-of-2025 "Sensitive" Areas to Focus On
Roth Conversions and Retirement-Account Planning
Although OBBBA extended favorable tax brackets, 2025 is still a potentially advantageous time to convert traditional IRAs to Roth IRAs.
By doing so, you can help manage future tax exposure. However, it’s important to note that conversions increase income and could affect Medicare IRMAA, state taxes, or other thresholds.
Even with lower rates extended, strategic timing remains key to minimizing tax impact while optimizing long-term savings.
SALT Deduction and Itemizing Strategies
If you live in a state with high property, income, or sales taxes, this year offers a unique chance to maximize deductions.
Under current rules, the SALT cap has been temporarily increased for many filers; however, this change may not last. Exploring whether to “bunch” deductions or pre-pay certain state taxes could create meaningful tax savings before year-end.
To stay proactive, evaluate whether itemizing deductions makes sense for your specific situation in 2025.
Estate, Gift, and Business-Income Planning
The elevated federal estate tax exemption that was initially set to expire after 2025 may have received an extension, but it’s still wise to revisit your estate plan, business succession strategies, and lifetime gifting approach.
For business owners, factors such as the QBI deduction, PTE tax elections, and depreciation rules may also play a significant role in optimizing your year-end financial picture.
A thoughtful review now can help ensure that your wealth-transfer and business strategies remain both compliant and efficient.
What You Should Do Before Year-End
Before December 31 arrives, it’s important to take a few practical steps. Start by scheduling a comprehensive review of your tax and financial plan. Evaluate your year-to-date income, expected 2025 figures, retirement accounts, business entities, and estate documents.
Next, coordinate with your tax and legal advisors. Many tax-planning decisions overlap with CPA work or estate documentation, and early collaboration helps prevent last-minute surprises.
You should also run “what-if” models to explore potential outcomes. For instance, what happens if you accelerate a bonus, convert a portion of your IRA, or pre-pay certain deductible expenses? Understanding these scenarios before acting can prevent unintended tax consequences.
Don’t forget to track important deadlines. Certain actions, such as charitable donations, retirement contributions, or business entity elections, must be completed by December 31.
And finally, update your estate plan and beneficiary designations. What worked two or three years ago may not be optimized under today’s evolving rules.
Why Timing Matters More Than Ever
Even though the tax law environment has stabilized compared to recent years, that doesn’t mean it’s static.
What makes 2025 unique is that understanding the current rules now can give you more control over your future. At MFP, we view planning not as a reaction to change, but as a way to proactively position our clients for both known and potential shifts.
By treating year-end as a strategic checkpoint rather than a filing deadline, we help clients move from uncertainty to opportunity.
The Bottom Line
As the year draws to a close, taking proactive steps with your financial plan can set the stage for a stronger, more secure future.
Whether it’s maximizing tax advantages, reviewing investment allocations, or aligning your goals for the coming year, these actions help you stay in control and prepared.
Don’t wait until January—start now to make the most of available opportunities.
If you’re unsure where to begin, partnering with a trusted advisor can provide clarity and confidence as you move forward.
