For most high-net-worth individuals and families, tax planning is a year-round endeavor. However, it’s still wise to take a final look at your taxes and make any necessary changes before the end of the year.
If you’re hoping to maximize tax savings for 2025, consider these year-end tax strategies:
Last-Minute Tax Moves
For many of my clients, these year-end tax planning moves lead to considerable savings:
Tax-Loss Harvesting
Selling selected assets at a loss may help offset capital gains taxes.
Funding Health Savings Accounts (HSAs)
If you have an HSA, you may contribute up to $4,300 for individuals (or $8,550 for families). HSA contributions have a triple tax advantage: contributions are tax-deductible, funds grow tax-free, and withdrawals are tax-free.
Contribute to a 529 Plan
If you’re funding educational costs for children or grandchildren, contributions to 529 plans can be deducted from your state taxes.
Defer Income
If possible, wait until 2026 to receive a year-end bonus, invoice clients, or otherwise accept some of your income. This tax planning strategy may reduce your total annual income, in turn reducing your total tax bill.
Gifting Strategies
Charitable giving is part of a comprehensive financial plan for many of our clients. A smart charitable giving plan helps you maximize tax savings while supporting causes you care about. As part of your year-end tax planning, consider these giving strategies:
- Gifting appreciated assets (like stocks) to avoid capital gains tax and maximize tax deductions
- “Bunching” multiple years’ worth of donations to increase deductions
- Starting a donor-advised fund (DAF) to get an immediate deduction while spreading out gifts over time
Keep in mind that if you want to deduct a charitable contribution on your 2025 taxes, you must make that contribution by December 31.
Reviewing Your 401(k) Contributions and Employer Benefits
The deadline for 2025 contributions to your 401(k) is December 31. As part of your year-end tax planning, verify that you’ve maxed out your contributions. You may contribute up to $23,500 for 2025; if you’re 50 or older, you may make an additional $7,500 catch-up contribution.
If you are between 60 and 63, you qualify for a new “super” catch-up contribution of $11,250.
Preparing for 2026 Sunset of Tax Cuts & Jobs Act
The Tax Cuts and Jobs Act (TCJA) of 2017 introduced several major changes to the tax code, including the following:
- Most individual income tax rates were lowered.
- The standard deduction nearly doubled.
- The corporate income tax rate was lowered from 35% to 21%.
Many TCJA provisions (with the exception of the corporate income tax reduction) were scheduled to sunset at the beginning of 2026. However, the passage of the One Big Beautiful Bill Act (OBBBA) of 2025 made most of the TCJA’s temporary changes permanent.
Some TCJA provisions are still set to sunset in 2026, and they may have an impact on your tax planning. One of the most significant changes has to do with the state and local tax (SALT) deduction. The TCJA capped the SALT deduction at $10,000. The OBBBA raised the cap to $40,000 for the 2025 tax year.
This change is especially significant for California consumers, as the state has one of the highest state and local tax burdens in the country.
The OBBBA accelerated the expiration date of the residential clean energy credit. Now the credit applies only to clean energy expenditures made by December 31, 2025.
Need Help With Year-End Tax Planning?
Tax planning can be overwhelming for anyone. When you have the help of an experienced financial advisor, you are better equipped to choose year-end tax strategies that best suit your needs.
Win Wealth Solutions is focused on high-net-worth wealth management. We believe in a comprehensive approach that includes investment management, tax planning, college funding, retirement planning, and estate planning. And as fiduciary financial advisors, our work is transparent and centered on your financial well-being above all else.
If you have questions about what we do and how we might be able to help you, contact us online today. To schedule a meeting, call (949) 413-8387 or email Nguyen@WinWealthSolutions.com.
Frequently Asked Questions
1. Why is year-end a good time to revisit tax planning?
Even if your tax planning runs all year, December gives you one last chance to review your income, contributions, and deductions before deadlines hit. A final check helps prevent you from leaving smart, legally sound savings on the table as the year closes.
2. What are easy tax planning actions people often overlook?
Common misses include checking retirement withholding, maximizing HSA or 401(k) contributions before December 31, and coordinating charitable gifts to happen within the right tax year. Small tax planning steps like these can create clarity now and better alignment with long-term goals.
3. Who can help me make sense of complicated tax planning choices at year-end?
Financial advisors who understand the needs of affluent professionals can provide guidance that connects withholding, investments, employer benefits, and legacy goals in one strategy. Firms like Win Wealth Solutions and advisors like Nguyen Tran can help families approach tax planning in a smarter, more integrated way.
About Nguyen
Nguyen Tran is founder and financial advisor at Win Wealth Solutions, an independent financial services firm based in Los Angeles, California. Dedicated to assisting clients with their greatest financial concerns, Win Wealth offers comprehensive investment management and financial strategies, coupled with unbiased advice and recommendations. As a first-generation immigrant, Nguyen thrives off hearing clients’ stories, hopes, and dreams, and loves sharing his knowledge to help them find better solutions to their situations. With over 20 years of experience, he has helped clients retire, pay for their kids' college, and build lasting wealth.
Nguyen studied finance and marketing and obtained a BS in Business Administration from Cal Poly Pomona, and he holds the Chartered Retirement Planning Counselor™, CRPC™ designation. He is committed to lifting his team and clients to new heights and giving back to the community through scholarships, donations, and volunteering. Raised in Modesto, Nguyen now resides in Hancock Park, Los Angeles, with his wife and two kids. Outside of work, he enjoys playing sand co-ed flag football in Huntington Beach, hiking, organizing trips, and gardening. To learn more about Nguyen, connect with him on LinkedIn.
Disclaimer: The information provided in this article is intended for general informational purposes only. It is believed to be reliable; however, Nguyen Tran and Win Wealth Solutions cannot guarantee its accuracy or completeness. It is essential to understand that laws, regulations, and circumstances may change, and the content provided in this article may not always reflect the most up-to-date information. Readers are strongly encouraged to consult with qualified professionals, including attorneys, tax and financial advisors, to ensure that any actions or decisions align with their needs, objectives, and overall financial plan. Securities and investment advisory services offered through Osaic Wealth, Inc. member FINRA/SIPC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth.