2025 Tax Action Deadlines

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2025 Tax Deadlines

Contributions to Qualified Plans (IRA/Roth IRA/HSA) April 15, 2026 (plus extensions)
Contributions to Employee Savings Plans (401k/403b/457/TSP December 31, 2025
Roth Conversions December 31, 2025 (these are not reversible)
Qualified Plan Distributions December 31, 2025
Charitable Donations December 31, 2025 (based on the date you send or deliver it)
Qualified Charitable Donations December 31, 2025 (based on when the charity cashes the check)
Tax Loss or Tax Gain Harvesting December 31,2025
4th Quarter Estimated Payment January 15, 2026

 

 

 

As 2025 winds down its time to take one last look at your tax planning for the year.  With the majority of the year behind us, much of your tax year is set, but there are some areas where you may be able to round out your year in a tax-efficient way.

 

For those who are still employed

Top Off Qualified Plan Contributions

…in Employer Savings Plans (401k, 403b, 457):

Double check to make sure you’ve contributed the amount you intended to for the year to your qualified accounts.  In your employer’s savings plan (401k, 403b, 457, etc) you may still have time to talk to your payroll department to top off any contributions that were lacking compared to your plan this year.  Contribution limits to these accounts are $23,500 plus another “catch-up” contribution $7,500 for those age 50 and over or a “super-catch-up” contribution of $11,250 for those age 60-63.  These contributions must be made by December 31, 2025 (but for practical purposes by your last pay period of the year since they come out of your payroll check).

…in IRAs or Roth IRAs

This one is easy to miss since the contributions aren’t processed through your payroll checks at work.  Contributions limits on IRAs/Roth IRAs are $7,000 plus a “catch-up” contribution of $1,000 for those age 50 and over.  You (or your spouse) do need to have earned income equal to or greater than the amount you contribute to these plans.  The limit is for the total amount contributed to an IRA and a Roth IRA (you can’t contribute $7,000 to each type of plan).  There is a phaseout for higher income earners on Roth IRA contributions that starts at $150,000 (single filer) and $236,000 (married filing jointly).    If you are covered by an employer savings plan (like a 401k) the thresholds for IRA contributions are lower, $79,000 (single) and $126,000 or $236,000 (MFJ with the latter being if just one spouse is covered.  The deadline for these contributions is by your tax filing deadline, typically April 15, 2026 and includes extensions.

Retirees or those with low-income years during working years

Roth Conversions:

If you have planned to do a Roth conversion the deadline for doing so is December 31st.  Also, be sure to pay the tax on these conversions via withholding from your IRA when your process the conversion or by making an estimated tax payment via mail or online to the IRS.

 

Qualified Plan Distributions:

If you have distributions from your qualified accounts that you want to be included in your 2025 taxes, be sure to do them before December 31, 2025.

 

Required Minimum Distribution (RMDs):

For those of you who reached age 73 you need to take Required Minimum Distributions from your Qualified Accounts (if you are still working you do not have to take an RMD from that retirement plan unless you are 5% or more owner of the business)

RMDs need to be completed by December 31, 2025 (or by April 1, 2026 if you turned 73 in 2025).  Keep in mind , if you have more than one IRA account RMDs can be aggregated into one distribution from whichever IRA you choose to take it from, but with employer plans (401k, 403b..) you will need to take an RMD from each plan.

Failure to take your RMDs by the deadline can result in a penalty.

 Charitable Donations;

Any charitable donations you want to count toward your 2025 taxes must be completed by December 31, 2025.  If you are donating securities, the donation is considered complete once the securities post as a transfer from your account the the charities account.  Cash donations are considered complete when you send the check (the date is was posted marked by USPS, the date the delivery service like FedEx/UPS states as the delivery date, or the date you personally deliver the check to the charity).

Qualified Charitable Distributions (QCDs):

A great way to save money on taxes for those over the age of 70.5 years, QCDs are distributions made directly from your pre-tax IRA account to a qualified charity tax-free.  These are process through your custodian, must be recorded correctly by your tax preparer, and the cash issued by the custodian must be cashed by the charity prior to December 31, 2025.  If this is part of your financial plan for 2025 be sure to jump on this right away.

Tax Loss or Tax Gain Harvesting:

Is tax loss harvesting or gain part of your tax planning strategy in 2025? This strategy is a way to sell positions at a low or 0% long-term capital gains rate for the year or to sell positions at a loss to offset gains in other stock sales. Up to $3,000 of net realized loss can be applied against ordinary income as well.  If this is part of your plan, be sure these sales post to your account by December 31, 2025 so they show up on your 1099 from your custodian for 2025.  There are specific rules about selling and rebuying positions within 30 days (wash sales) that apply to account across your household and across all custodians you have assets with so be sure you plan carefully.

Also, you may have carry-forward losses that can be applied to the 2025 tax year, so check your 2024 tax return for evidence of these carry-overs.

A few changes from One Big Beautiful Bill that took affect this year and may have an impact on your 2025 return:

  • Higher standard deductions for the year
  • An additional $6,000 extra deduction per person 65 or older (subject to income-based phase-outs)
  • A $40,000 limit on state and local tax itemizable deductions (subject to income-based phase-outs)
  • Up to $10,000 of interest on car loans for new cars whose final assembly was in the U.S. and where the loan was taken out no earlier than 2025
  • This is the last year to take advantage of the home energy credits. If you installed doors and windows with an Energy Star rating or heating and cooling systems that meet clean energy or efficiency standards you may qualify for this credit.  Check out the details at https://www.energy.gov/policy/articles/making-our-homes-more-efficient-clean-energy-tax-credits-consumers.

As always, if you have questions about your personal tax situation, don’t hesitate to reach out.