2025 Year-End Financial Checklist

As we approach the end of 2025, the financial planning committee at Atlantic Edge has put together our list of important reminders and strategies specifically designed for you.

The end of the year presents many opportunities and deadlines to execute different financial planning decisions. The checklist below covers what to do, who it applies to, and why it helps. Where limits or deadlines matter, they are included so you can identify any topics that may be relevant to you.

1. Maximize employer plan contributions (401(k), 403(b), 457(b))

2025 deferral limit: $23,500. Standard catch-up at 50+: $7,500. Ages 60–63 may have a higher catch-up of $11,250 if the plan supports it. Does this apply to me? Yes, if you are eligible for a workplace plan. How this helps: Increases tax-advantaged savings and may lower 2025 taxable income. If you are below the limit of contribution and able to contribute the maximum, consider increasing your contribution percentage for your last payrolls.

2. Retirement plans for entrepreneurs

• Solo 401(k): Employee deferrals by Dec 31; employer portion by your filing deadline.
  

• SEP IRA: Employer contribution by filing deadline, including extensions.
  

• SIMPLE IRA: Follow plan rules; complete 2025 deferrals by year end. Catch-up rules differ from 401(k)s.
  

Does this apply to me? Yes, if you are self-employed or own a business. How this helps: Larger deductible contributions and better control of income.

3. Traditional or Rollover IRAs

2025 limit $7,000; $8,000 at age 50+. You can make a 2025 IRA contribution until April 15, 2026. Does this apply to me? Yes, with earned income or a spouse who does, if you are not covered by an Employer Sponsored plan or under the income limits. How this helps: Enables backdoor Roth strategies and tax-advantaged growth.

4. Roth Conversions

Consider converting some of your traditional IRA to a Roth IRA if you’ve had a lower-income year or expect higher tax rates in the future. You must complete the conversion by December 31.

Does this apply to me? Yes, if your income is lower this year or you expect higher taxes in retirement.

How this helps me: Roth IRAs offer tax-free growth, and you avoid future RMDs.

5. Health Savings Accounts

2025 HSA limits: $4,300 self-only, $8,550 family. Catch-up $1,000 at 55+. HDHP minimum deductibles: $1,650 self-only, $3,300 family. Does this apply to me? Yes, if enrolled in an HSA-eligible HDHP. How this helps: Triple tax advantage and a long-term healthcare reserve.

6. Required Minimum Distributions (RMDs)

If you’re 73 or older, you must take your RMD by December 31. If this is your first RMD, you can delay until April 1, 2026, but this would require two RMDs in 2026. Our team will review your necessary RMDs and reach out if applicable.  RMDs can be invested in a taxable account, sent to a checking account, or mailed as a check.

Does this apply to me? Yes, if you’re 73 or older.

How this helps me: Avoids the steep 50% penalty on missed RMDs. Even if you don’t need the funds for expenses, reinvesting them in a taxable account can keep the money working for you.

7. Inherited IRAs

Final IRS rules effective 2025 require annual withdrawals in some 10-year cases when the decedent died after their RMD start date. Others still use a clean 10-year window. Confirm your status and schedule. Does this apply to me? Yes, if you inherited an IRA after 2019. How this helps: Prevents penalties and keeps taxes predictable.

8. Charitable giving and QCDs

• QCDs: Age 70½+ can donate up to $108,000 from IRAs in 2025. Counts toward RMDs if timed correctly. Deadline Dec 31.
  

• Appreciated assets and DAFs: Consider gifting securities directly or bunching gifts for itemization efficiency.
  

Does this apply to me? Yes, if you give annually or want AGI control. How this helps: Reduces taxable income and may improve bracket outcomes.

9. Family Gifting Strategies (Including Gift Tax Exclusion and 529 Contributions)

In 2025, you can gift up to $19,000 per person without incurring gift taxes. Married couples can gift up to $38,000 per recipient. You can also contribute to a 529 college savings plan, helping fund education while reducing your taxable estate. With 529 plans, you can front-load up to five years' worth of contributions in one year.

Does this apply to me? Yes, if you want to transfer wealth to family members or help fund a child’s or grandchild’s education.

How this helps me: Gifting allows you to reduce your taxable estate and transfer wealth tax-free. 529 contributions grow tax-free when used for qualified education expenses, providing both estate planning and education funding benefits.

10. Tax-loss and tax-gain harvesting

Your portfolio management team will review your taxable investment accounts for any opportunities to capture losses.

Does this apply to me? Yes, if you have taxable investment accounts with unrealized losses.

How this helps me: You can offset capital gains and carry forward unused losses to future years, reducing taxes and improving your overall portfolio performance.

11. Reviewing Your Employee Benefits

As the year ends, take time to review your employee benefits, especially with open enrollment periods approaching. Consider your healthcare coverage, retirement plan options, and any other benefits that may require changes.

Does this apply to me? Yes, if you’re employed and have access to benefits that may require decisions during open enrollment.

How this helps me: Ensures you’re maximizing the value of your benefits package, adjusting for any changes in healthcare coverage, retirement contributions, or other employer-sponsored perks.

12. Life Insurance Policy Review

Review your life insurance policies to ensure they align with your current financial and family situation, especially if there have been major changes such as marriage, the birth of a child, or significant asset growth.

Does this apply to me? Yes, if you’ve experienced any major life changes or asset growth.

How this helps me: Ensures your life insurance coverage is adequate for your current needs and estate planning goals, offering peace of mind and protection for your family.