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5 Year-End Tax Moves That Could Save You Six Figures Thumbnail

5 Year-End Tax Moves That Could Save You Six Figures

As we approach the end of the year, many people are focused on holiday plans and closing out their to-do lists. But if you’re a high-income professional, a business owner, or a retiree with significant assets, this season presents an important financial opportunity. Proactive, strategic planning now may help reduce your tax liability, improve your investment outcomes, and position your portfolio for long-term success.

I'm Antwone Harris, a CERTIFIED FINANCIAL PLANNER™ and founder of Platinum Bridge Wealth Strategies. Over the years, I’ve helped hundreds of clients transition into and through retirement with more clarity and confidence by focusing on smart, forward-looking tax strategies. In many cases, taking a few well-timed steps before December 31st has made a measurable difference in their financial picture.

Let’s take a look at five strategies to consider before the year ends—moves that may potentially lower your taxes and strengthen your retirement plan.

 

1. Harvest Capital Gains and Losses Strategically

Tax-loss harvesting is a useful tool for investors in taxable brokerage accounts. It involves selling investments that have declined in value to realize capital losses, which can offset capital gains or reduce ordinary income (up to $3,000 per year). Unused losses can be carried forward to future years (IRS Publication 550).[1]

If you're in a lower tax bracket this year—due to retirement, a career change, or less income—you might consider harvesting gains as well. In certain income brackets, long-term capital gains may be taxed at 0% (IRS Capital Gains and Losses).[2]

Key Considerations:

  • Assess unrealized gains and losses in taxable accounts.
  • Consider both short- and long-term opportunities.
  • Keep the wash sale rule in mind: selling and rebuying the same—or substantially identical—security within 30 days denies the loss deduction (TurboTax Wash Sale Rule Explanation).[3]

Takeaway: Review your portfolio before year-end to realize tax losses—or possibly take gains at favorable rates.

 

2. Donate Appreciated Assets Instead of Cash

If charitable giving is part of your financial plan, the method you use can significantly impact your tax efficiency and the organization’s benefit.

Donating appreciated securities held for more than one year allows you to:

  • Take a charitable deduction for the full fair market value.
  • Avoid paying capital gains tax on the appreciated portion (IRS Charitable Contributions).[2]

Example (Hypothetical): Suppose you purchased a stock for $40,000, and it’s now worth $100,000. Donating the stock could give you a $100,000 charitable deduction and avoid capital gains tax on the $60,000 gain.

Takeaway: Donating appreciated securities may offer greater tax efficiency.

 

3. Maximize Tax-Advantaged Retirement Contributions

Year-end is a great time to confirm whether you’ve maximized all available retirement accounts.

2025 Contribution Limits:

  • 401(k): $23,500, with $7,500 catch-up if age 50+ (Fidelity Retirement Limits 2025).[4]
  • HSA: $4,300 for individual; $8,550 for family (TIAA HSA Limits).[5]
  • IRA: $7,000 limit; $1,000 catch-up if 50+ (IRS IRA Contribution Limits).[6]

Backdoor Roth IRAs allow certain investors above Roth income thresholds to create a Roth IRA with after-tax contributions and a conversion (Fidelity Backdoor Roth Guide).

Takeaway: Maximize retirement and health savings contributions before year-end for improved tax efficiency.

 

4. Consider Roth Conversions in Low-Income Years or Market Pullbacks

A Roth IRA conversion lets you move funds from a traditional IRA or 401(k) into a Roth IRA. You’ll pay taxes on the converted amount now, but future qualified withdrawals may be tax-free (IRS Roth IRA Conversion Rules).[6]

This strategy is attractive if:

  • You're in a temporary lower tax bracket.
  • Your investments have dropped in value recently.

By converting when values are lower, you pay tax on a smaller amount and let future growth occur tax-free.

Takeaway: Roth conversions may help build tax-advantaged retirement income, especially in years when income is low or markets are down.

 

5. Rebalance Your Portfolio and Evaluate Risk Exposure

A strong market year often leaves portfolios overweight in certain asset classes. Rebalancing is key to maintaining your target allocation.

Why It’s Important:

  • Maintains a consistent risk profile.
  • Encourages disciplined buying and selling.
  • Reduces overconcentration risk. 

Watch for:

  • Overconcentration in growth or tech stocks.
  • Index funds top-heavy with dominant companies.

Takeaway: Rebalancing may help keep your investing strategy consistent with your risk tolerance.

 

Bonus Tip: Coordinate with a Fiduciary Advisor for Integrated Tax Planning

Each of these strategies comes with important rules, thresholds, and limitations. A fiduciary financial planner can help you:

  • Integrate tax strategies with your overall plan.
  • Identify opportunities based on your unique situation.
  • Navigate IRS rules and deadlines (CFP Board on Fiduciary Planners).

Takeaway: A fiduciary planner can help ensure your tax strategies match your goals, within current tax law.

 

 

Investment advisory services offered through Osaic Advisory Services, LLC (Osaic Advisory), a registered investment advisor. Osaic Advisory is separately owned, and other entities and/or marketing names, products, or services referenced here are independent of Osaic Advisory.

 

References

  1. IRS Publication 550: Investment Income and Expenses[1]
  2. IRS Publication 550 (2024): Capital Gains and Losses[2]
  3. TurboTax: Wash Sale Rule Explanation[3]
  4. Fidelity: 401(k) Contribution Limits 2025[4]
  5. TIAA: 2024-2025 COLA and Health Savings Account Limits[5]
  6. IRS: IRA Contribution Limits 2025[6]
  7. CFP Board: Working with a Fiduciary