As we are approaching the end of the year now is the ideal time to review your accounts, complete required tasks, and ensure any needed updates are finalized before December 31st.
You should have received an email from us in October regarding 2025 year-end transactions. While we have already discussed and completed year-end items for most clients, we want to provide a clear reminder of the key deadlines and opportunities still available.
Roth Conversions and Required Minimum Distributions (RMDs)
We are currently completing year-end Roth conversions and have completed Required Minimum Distributions (RMDs) for most clients. If we need anything from you, our team will reach out directly.
If you expect to convert to a Roth IRA this year or need help confirming your RMD amount, please let us know as soon as possible. Both Roth conversions and RMDs must be completed by December 31st.
2025 Retirement Plans
Although the deadline for business owners to establish most employer-sponsored retirement plans has already passed for 2025 there are still a couple of options that remain available.
- Solo 401(K): Can generally be established by December 31, 2025, depending on business structure and whether employee deferrals are needed.
- SEP IRA: Can be established and funded as late as the business’ tax-filing deadline, including extensions:
- April 15, 2026 (most businesses)
- October 15, 2026, if an extension is filed.
If you are a business owner interested in maximizing tax-advantaged retirement contributions for 2025, please reach out to discuss which plan type is appropriate and what deadlines apply to your specific situation.
Charitable Giving
For those looking to complete year-end charitable giving:
- Donor Advised Fund (DAF) contributions
- Qualified Charitable Distributions (QCDs) from IRAs
Both must be completed by December 31st to count for the current tax year.
If you plan to make a gift this year, please contact us before December 15th, so we can ensure processing is completed on time.
IRA Contributions
While Roth conversions and RMDs must be completed by year-end, contributions to IRAs follow different timing rules.
You may contribute to a Traditional IRA or Roth IRA for the 2025 tax year until April 15, 2026 (the 2025 tax filing deadline).
This provides additional flexibility, but we still recommend planning contributions early to align with your broader retirement strategy.
Key Reminders from Recent Legislation
Increased Retirement Contribution Limits: For 2025, contribution limits for retirement accounts have increased due to inflation adjustments.
- 401(k), 403(b) & 457 employee deferrals: $23,500
- Catch-up (Age 50+): +$7,500
- Super Catch-up (Age 60-63): +$11,250
- Traditional & Roth IRA: $7,000
- Catch-up (Age 50+): +$1,000
- SIMPLE IRA: $16,500
- Catch-up (Age 50+): +$1,000
- Super Catch-up (Age 60-63): +$5,250
- SEP IRA (self-employed or employer funded): 25% of compensation or $70,000 (lesser of the two)
Higher RMD Age: Since the passing of Secure Act 2.0 in December of 2022, the starting age for required minimum distributions has moved from 72 to 73. It will once again change in 2033 to 75 years old.
Need to Make Changes? Contact Us Soon
If you would like to make changes to contributions, withdrawals, conversions, or charitable gifts before year-end, please let us know before December 15th. This ensures we have the time needed to process everything before the December 31st deadlines.
If you found this year-end financial guide helpful, please share it with friends, family, and colleagues who may benefit from these important reminders.
PAST PERFORMANCE IS NOT A GUARANTEE OF CURRENT OR FUTURE RESULTS. Examples of historical information included in this presentation do not, nor are they intended to, constitute a promise of similar future results. Specific client portfolio allocations, risks and returns can and may deviate from these examples depending on accounts and types of investments available through each account. Future market views by WJ Interests, LLC may vary significantly from the historical examples presented herein and no one receiving this summary should assume that WJ Interests, LLC will be able to replicate successful views in the future.
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