Year-end tax planning looks fundamentally different this year if you’re approaching retirement with significant assets and income.

The One Big Beautiful Bill Act, which became law on July 4, 2025, created an unusual transition to navigate as several provisions expire in 2025 while others launch in 2026. For the high-income earners in the Columbus and Gahanna area we typically serve, this shift creates both opportunities and traps that didn’t exist before.

What you do, or don’t do, before December 31st can shape your retirement tax picture for years to come.

Let’s walk through critical decisions and deadlines you may need to make before the year is over to maximize your tax savings.

Editor’s Note: This article was published in November 2025 ahead of year-end deadlines. While some 2025-specific deadlines have passed, the OBBB’s multi-year provisions (2026-2028) and coordination principles make this planning guidance relevant for ongoing tax strategy.

6 Year-End Tax Moves to Consider Before December 31st

1. Accelerate Charitable Giving Before the 0.5% Floor Takes Effect

Thanks to the OBBB, 2025 is your last opportunity to deduct the full amount of charitable gifts. Starting in 2026, only charitable contributions exceeding 0.5% of your adjusted gross income will be deductible.

The math matters: someone earning $300,000 would need to donate more than $1,500 before gaining any tax benefit under the new rules. For those who support charities annually, this change could eliminate thousands in deductions going forward.

Of course, everyone’s situation is different but if this sounds like you, you may want to consider:

• Accelerating multiple years of planned donations into 2025
• Funding a donor-advised account now to receive the full deduction while distributing to charities over time

2. Evaluate Roth Conversions with IRMAA and New Deduction Limits in Mind

Considering a Roth conversion? The calculus around moving traditional IRA money to a Roth has gotten more complex. The OBBB introduces new itemized deduction limitations for high earners beginning in 2026, while Income-Related Monthly Adjustment Amounts (IRMAA) continue affecting Medicare premiums for high-income retirees.

If you want to model the full impact, consider how the additional taxable income affects your current bracket, Medicare premiums for the next two years, and deduction capacity in both 2025 and 2026.

You may benefit from acting before the new limits take effect. Or you may be better off waiting until 2026 when the new itemized deduction limits could change your planning strategy. Poor timing could trigger thousands in extra Medicare premiums while simultaneously limiting other tax benefits so it’s important to consider all the possibilities and get professional guidance to be sure.

3. Capture Residential Energy Credits Before They Expire Forever

If you’ve been considering solar panels, energy-efficient windows, heat pumps, or other qualifying home improvements, you may want to act before year-end. December 31, 2025, marks the final deadline for residential energy credits; they won’t be available in 2026 or beyond.

These credits can be substantial, but you need to complete the installation and claim the credit on your 2025 tax return. This is a hard deadline. After December 31st, these credits disappear entirely, and you’ll miss the opportunity to offset the cost of energy-efficient improvements so don’t delay.

4. Strategic Income and Expense Timing for Business Owners

If you control a business, you have leverage most W-2 employees don’t: discretion over when to recognize revenue and take deductions.

The OBBB changed how business income interacts with personal taxes starting in 2026, creating new planning angles. For instance, delaying December invoicing until January shifts that revenue into a year when you might benefit from different tax treatment or avoid crossing into higher IRMAA brackets. Similarly, prepaying January expenses in December requires analyzing which year gains more from the deduction under the evolving rules.

Before making any end of year decisions, make sure you factor in your retirement timeline and expected income trajectory. The flexibility is valuable, but only with careful analysis across multiple tax years.

5. Maximize the New $6,000 Senior Deduction Available This Year

A significant new benefit is available for those 65 and older: a $6,000-per-person deduction that you can claim on your 2025 tax return. However, this deduction is temporary, sunsetting after tax year 2028, giving you just four years (2025-2028) to take advantage of this opportunity.

This new deduction affects multiple strategies for year-end planning:

If you’re 65 or older, you now have $6,000 in additional deduction capacity (or $12,000 for couples where both qualify) that can offset income recognition decisions. This makes accelerating income into 2025 more attractive than it might have been otherwise, since you have this extra deduction to absorb it.

Your charitable giving strategy may shift since you’ll have more deduction “room” before hitting limits, potentially allowing you to maximize other tax benefits while still receiving the senior deduction.

For Roth conversions, the senior deduction provides additional capacity to absorb conversion income without jumping into higher tax brackets, making this year particularly advantageous for conversions if you qualify.

Calculate whether you qualify and consider how to best utilize this benefit during its limited four-year window. For those turning 65 soon, timing certain financial moves around when you qualify can create significant tax savings.

6. Review Your Itemized vs. Standard Deduction Strategy

The OBBB modified how itemized deductions work for high earners, with new calculations taking effect in 2026.

This change affects whether bunching expenses into one year or spreading them serves you better.

The impact varies by income level: some gain more by maximizing itemized deductions in 2025, then taking the standard deduction (along with the senior deduction if you’re 65 or older). Others benefit from a different approach. The point is that itemizing may look substantially different next year, making strategic timing valuable now.

Why These Moves Require Coordination

As you can see, making smart moves in one area while ignoring ripple effects elsewhere is where mistakes happen.

If you maximize your charitable gifts in 2025 to beat the new floor, it changes your itemized deduction picture. Meanwhile, a Roth conversion affects both Medicare premiums and deduction limitations. If you’re 65 or older, the new senior deduction changes the calculus for income timing and expense recognition. And if you’re a business owner, income timing influences everything else.

Optimizing for one goal without accounting for how it affects the rest often costs more than it saves. That’s why we’re so passionate about offering holistic planning that considers your entire financial situation; it’s the only way to truly make sense of everything.

Frequently Asked Questions

Should I do a Roth conversion before year-end?

The timing depends on your complete tax situation. With the OBBB introducing new limitations on itemized deductions for high earners starting in 2026, some people benefit from converting in 2025 before these limits take effect.

However, it’s important to consider how the conversion income affects your Medicare premiums (IRMAA) and whether you might benefit from the new $6,000 senior deduction available this year if you’re 65 or older. This deduction provides additional capacity to absorb conversion income, which could make 2025 particularly attractive for conversions if you qualify. The deduction is available through tax year 2028, so you have a four-year window to plan around it.

The optimal timing varies significantly based on your age, income, and overall tax picture, which is why personalized analysis is crucial.

How much of my charitable donation is tax deductible?

In 2025, the full amount of your charitable contributions is generally deductible (up to 60% of your adjusted gross income for cash gifts). However, starting in 2026 due to the OBBB, only the amount exceeding 0.5% of your AGI will be deductible. For example, if your AGI is $200,000, you’d need to give more than $1,000 before any of it becomes deductible under the new rules. This makes 2025 particularly important for maximizing charitable deduction benefits.

When is the deadline to donate for tax purposes?

December 31st is the deadline for charitable contributions to count toward your 2025 tax return. However, 2025 is especially critical: it’s your last year to deduct the full amount of charitable gifts before the 0.5% floor takes effect in 2026.

What is a Qualified Charitable Distribution (QCD)?

A Qualified Charitable Distribution allows you to donate up to $108,000 (in 2025) directly from your IRA to charity if you’re 70½ or older. The distribution counts toward your Required Minimum Distribution but isn’t included in your taxable income. QCDs become even more valuable starting in 2026 when the OBBB’s 0.5% charitable deduction floor takes effect; QCDs bypass this limitation entirely since they’re excluded from income rather than claimed as deductions.

Why Tax Management Matters Beyond Year-End

The OBBB is a perfect example of why tax strategy can’t be an annual December scramble or an April afterthought.

At Intelliplan Financial in Gahanna, we treat tax management as one of five pillars in our holistic wealth management approach, integrated year-round with your retirement, asset, legacy, and protection planning.

Our year-end review examines your income sources, retirement accounts, business interests, and charitable intentions, then models different scenarios to show how each decision affects your taxes across multiple years.

For Columbus area pre-retirees and retirees with significant income and assets, the choices you make before December 31st will shape your retirement for decades. If you’d like help navigating the OBBB’s complexity and coordinating these year-end moves, we’d welcome the opportunity to review your specific situation.

Schedule a complimentary consultation today.

Disclosure: Financial Planning and Advisory Services are offered through Prosperity Capital Advisors (“PCA”), an SEC-registered investment adviser. Registration as an investment adviser does not imply a certain level of skill or training. Intelliplan Financial and PCA are separate, non-affiliated entities. PCA does not provide tax or legal advice.