A Checklist May Help Taxpayers Navigate Year-End Planning

by Bill Cass of Franklin Templeton, 10/29/25

With the passage of the OBBBA, the tax landscape is changing since many of the new provisions will impact the 2025 tax year.

It’s important to assess personal finances before the end of the year to determine if action is needed. This may include reviewing portfolios, funding retirement accounts and making gifts to family members or charities.

Review this checklist for strategies to minimize taxes and other potential benefits.

This resource can help uncover opportunities to improve your financial plan for the coming year. Explore our year-end planning checklist.

Here are a few highlights from each area:

Keep investments on track

Adjust or rebalance portfolios to make sure asset allocation reflects current risk profile
Be aware of mutual fund distribution dates before making purchases

Identify opportunities to minimize taxes

Estimate your projected income for the year to determine your marginal tax bracket
If a low tax bracket applies, consider accelerating income before the end of the year; if a high tax bracket applies, consider deferring income into next year if possible
Maximize new tax deductions if possible, including the expanded deduction for state and local taxes (SALT), tips, overtime and the deduction for seniors

Focus on retirement planning priorities

Maximize retirement savings including catch-up contributions if age 50 or older and the additional catch-up contribution for those ages 60 through 63
Remember to take required minimum distributions (RMDs), including those on inherited retirement accounts
If concerned about higher taxes in the future, consider a Roth IRA conversion

Understand options for charitable giving

Make charitable gifts before year-end to lower taxable income (if itemizing deductions)
If over age 70½ donate to charities from your IRA using a qualified charitable distribution (QCD)
Lump several years of charitable gifts into one year using a donor advised fund to itemize deductions

Create a legacy for family members

Utilize the annual gift tax exclusion before year end ($19,000 per individual or $38,000 for married couples electing to split gifts)
Make sure important documents (e.g., wills, trusts, powers of attorney, health care directives) are in place and up to date
Make gifts into 529 college savings plans

Consult with an advisor

It is important to discuss tax, charitable giving, retirement and estate planning strategies with a tax and financial advisor to determine if they are appropriate for your overall financial plan.

WHAT ARE THE RISKS?

All investments involve risks, including possible loss of principal.

Any information, statement or opinion set forth herein is general in nature, is not directed to or based on the financial situation or needs of any particular investor, and does not constitute, and should not be construed as investment advice, forecast of future events, a guarantee of future results, or a recommendation with respect to any particular security or investment strategy or type of retirement account. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial professional.

Franklin Templeton, its affiliated companies, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

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