Last-Minute Tax Moves That Can Still Save You Money Before Year-End

By Bob Moses | Altum Wealth Alliance

The final weeks of the year can be a blur. Between holiday travel, family gatherings, and business obligations, reviewing your tax strategy might be the last thing on your list. Yet this narrow window in December is when a few smart financial decisions can still make a meaningful difference in what you owe and how much you keep.

Here’s the good news: even with just a few weeks left in the year, there are practical ways to reduce your tax bill, maximize charitable impact, and set yourself up for a stronger start to the new year.

This is especially true for high-income families, business owners, and retirees who may have multiple income streams and more complex financial pictures. The key is taking action before December 31^st.

1. Accelerate Charitable Giving with a Strategic Twist

If you’re planning to support your favorite organizations this season, consider doing it in a tax-savvy way. Donating appreciated securities instead of cash can allow you to avoid capital gains tax while still receiving a deduction for the full fair market value.

You can also bundle several years of charitable giving into one larger contribution this year to clear the itemization threshold, especially if your annual giving has been just below the standard deduction in past years. A donor-advised fund (DAF) is a great tool to front-load your giving for tax purposes while spreading out distributions over time.

This strategy not only reduces your taxable income now, but also gives your future giving, more structure and control.

2. Review Your Required Minimum Distributions (RMDs)

If you’re 73 or older (or inherited a retirement account), you likely have a required minimum distribution to take by year-end. Missing the deadline comes with steep penalties, so this is worth double-checking.

Even better, consider using a Qualified Charitable Distribution (QCD). This allows you to donate directly from your IRA to a qualified charity, satisfying your RMD while excluding the amount from taxable income. For charitably inclined retirees, this can be one of the most tax-efficient ways to give.

3. Harvest Losses to Offset Gains

With markets delivering mixed results this year, now is a good time to look for unrealized losses in your taxable investment accounts. Selling those losing positions can help offset capital gains from other investments or even reduce up to $3,000 in ordinary income.

This tax-loss harvesting strategy can rebalance your portfolio and reduce taxes at the same time. Just be sure to avoid the wash-sale rule, which disallows the deduction if you buy the same or substantially identical investment within 30 days.

4. Maximize Retirement Contributions

Still working? You have until December 31 to max out your 401(k) or 403(b) contributions. For 2025, the employee deferral limit is $23,000 (plus a $7,500 catch-up if you’re 50 or older).

Deferrals reduce your taxable income dollar for dollar and grow tax-deferred. It’s one of the simplest and most effective ways to lower your current tax burden while investing in your future.

If you’re self-employed, consider making a Solo 401(k) or SEP IRA contribution. These can often be funded into next year, but establishing the account typically must happen before December 31.

5. Consider a Roth Conversion

A Roth conversion allows you to move money from a traditional IRA to a Roth IRA, paying taxes now in exchange for future tax-free growth and withdrawals. This can be especially attractive in lower-income years or when markets are down.

Before the year closes, estimate your total income and marginal tax bracket. If you’re in a relatively low bracket compared to what you expect in retirement, a partial Roth conversion can lock in taxes at a lower rate.

This is a powerful long-term strategy, but the timing matters. You have until December 31 to execute the conversion for this tax year.

6. Use Up Your Flexible Spending Accounts (FSAs)

If you have a healthcare or dependent care FSA through your employer, check the plan rules. Many require you to use the funds by year-end or risk forfeiting them.

Eligible expenses include everything from prescriptions to eye exams, so don’t let those dollars go to waste. Some plans offer a short grace period or limited rollover, but it’s worth confirming.

7. Make Use of Annual Gifting Exclusions

Each year, you can gift up to $18,000 per recipient (or $36,000 as a couple) without impacting your lifetime estate and gift tax exemption. These annual exclusion gifts are a simple, effective way to reduce a taxable estate while helping family or funding college savings plans.

Cash is always welcome, but gifting appreciated securities can provide a double tax benefit: you remove the asset from your estate and transfer the capital gains to the recipient, who may be in a lower tax bracket.

8. Get Your Team Talking

Even the best strategies fall flat when they’re done in isolation. This is the time of year when having your advisor, CPA, and estate attorney on the same page can create real savings.

Before year-end, it’s smart to review your broader goals. Are you expecting a business liquidity event? Selling real estate? Starting a charitable foundation? Your team can help coordinate actions now that ripple forward for years to come.

Make the Time Now, Reap the Rewards Later

Tax planning in December doesn’t have to be overwhelming. A short conversation with the right advisor can reveal opportunities hiding in plain sight.

At Altum Wealth Alliance, we work with successful families across Atlanta, Hilton Head, and Savannah who value proactive planning and integrated solutions. If your current strategy feels like it’s stuck on autopilot or you’re not sure what to prioritize before year-end, let’s talk.

A few smart moves today can make April’s tax bill feel a lot less painful.