What has changed for you in 2025? For some, this year has been as complicated as learning a new dance. Did you start a new job or leave a job behind? That’s one step. Some bigger changes, especially those in the family, are practically a pirouette. If notable changes occurred in your personal or professional life, you may want to review your finances before this year ends and 2026 begins. Proving that you have all the right moves in 2025 might put you in a better position to tango with 2026.
Even if your 2025 has been relatively uneventful, the end of the year is still a good time to get cracking and see what changes may need to be made.
Do you engage in tax-loss harvesting? That’s the practice of taking capital losses (selling securities worth less than what you first paid for them) to manage capital gains. If you are thinking about this move, consider seeking some guidance from a professional who can provide insights.
In fact, you could even take it a step further. Consider that up to $3,000 of capital losses in excess of capital gains can be deducted from ordinary income, and any remaining capital losses above that amount can be carried forward to offset capital gains in upcoming years.1
Do you want to itemize deductions? You may just want to take the standard deduction for the 2025 tax year, which has risen to $15,750 for single filers and $31,500 for joint. If you think it might be better to itemize, now would be a good time to get the receipts and assorted paperwork together.2
Are you thinking of gifting? How about donating to a qualified charity or non-profit organization before 2025 ends? Your gift may qualify as a tax deduction. For some gifts, you may be required to itemize deductions.3
While we’re on the topic of year-end moves, why not take a moment to review a portion of your estate strategy? Specifically, take a look at your beneficiary designations. If you haven’t reviewed them for some time, double-check that these assets are structured to go where you want them to, should you pass away. Lastly, look at your will to see that it remains valid and up-to-date.
Check on the amount you have withheld. If you discover that you have withheld too little on your W-4 form so far, you may need to adjust your withholding before the year ends.
What can you do before ringing in the New Year? New Year’s Eve may put you in a dancing mood, eager to say goodbye to the old year and welcome 2026. Please do it now rather than in February or March. Little year-end moves might help you improve your short-term and long-term financial situation.
New Retirement Contribution Limits For 2026
The Internal Revenue Service recently released new limits for 2026. Although these adjustments won’t bring any major changes, there are some minor elements to note.
Individual Retirement Accounts (IRAs)
IRA contribution limits are up $500 in 2026 to $7,500. Catch-up contributions for those over age 50 are up $100 to $1,100, bringing the total limit to $8,600.
Roth IRAs
The income phase-out range for Roth IRA contributions increases to $153,000-$168,000 for single filers and heads of household. For married couples filing jointly, the phase-out will be $242,000 to $252,000. Married individuals filing separately see their phase-out range remain at $0-10,000.
Workplace Retirement Accounts
Those with 401(k), 403(b), 457 plans, and similar accounts will see a $1,000 increase for 2026, the limit rising to $24,500. Those aged 50 and older will now have the ability to contribute an extra $8,000, bringing their total limit to $32,500. Those aged 60, 61, 62, and 63 may enjoy a higher catch-up contribution of $11,250, raising their total contribution limit to $35,750.
SIMPLE Accounts
A $500 increase in limits for 2026 gives individuals contributing to this incentive match plan a $17,000 stoplight. Pursuant to the Secure Act 2.0, certain applicable plans have an increased limit of $18,100.
Other Changes
In addition to contribution limit changes, the IRS also announced several other amendments for 2026, including an increase to the annual exclusion for gifts to $19,000 per person and an increase to the estate tax exclusion threshold.
Keep in mind that we provide updates for informational purposes only, so consult with your tax professional before making any changes in anticipation of the new 2026 levels or before modifying your tax strategy. You can also contact our offices, and we can provide you with information about the pending changes.
Sources:
IRS.gov, 2025
IRS.gov, 2025
IRS.gov, 2025