Time to Close the Books on 2025: Money Moves to Make First

A couple work on financial planning together at their kitchen table.

As we approach the close of 2025, many people find themselves reflecting on what has felt like a transitional year — economically, legislatively and personally.

This year brought continued market resilience despite persistent inflation concerns, the introduction of meaningful tax-policy shifts and more clarity around retirement rules that have been in flux since the SECURE Act's passage.

For individuals and families, these changes underscore an essential truth: Sound financial planning is never "one and done." It is a dynamic process that requires regular review, thoughtful adjustments and a clear eye toward the future.

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At SignatureFD, we work with clients to take advantage of the final weeks of the year to take a step back, assess their financial well-being and make intentional decisions that set the stage for a confident start to 2026.

While everyone's situation is unique, several themes stand out as especially important as we transition into the new year.

About Adviser Intel

The author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

Health, benefits and planning beyond investments

Health care remains one of the most significant drivers of retirement-age spending, and maintaining tax-efficient strategies in this area is more important than ever.

For individuals with flexible spending accounts (FSAs), most unused funds must be spent by December 31, although some plans offer limited rollover or grace periods.

In contrast, health savings accounts (HSAs) continue to be one of the most powerful long-term planning tools available; 2025 contribution limits have increased, and contributions can be made until April 15, 2026.

Gifting, charitable planning and the year ahead

End-of-year gifting is a powerful way to help family members, support education and manage long-term estate-planning goals.

The annual gift exclusion has risen to $19,000 per recipient for 2025, and the broader estate tax exemption remains at $13.99 million per person before increasing to $15 million in 2026 as part of the One Big Beautiful Bill Act (OBBBA).

Although the new exemption is described as "permanent," we know tax laws can change, and often do, making it prudent to evaluate whether larger gifts or transfers should be completed while today's historically high thresholds remain in place.

For families funding education, 529 plans remain flexible and advantageous. The ability to "superfund" up to five years of gifts in a single year allows significant acceleration of college savings, and expanded eligible educational expenses beginning in 2025 have broadened their usefulness.

In 2026, the allowable annual distribution for K-12 education doubles to $20,000, creating new opportunities for planning at earlier stages of a child's education journey.

Charitable individuals may also want to consider "charitable bunching," particularly ahead of OBBBA's introduction of a 0.5% charitable deduction floor starting in 2026.

By consolidating two or more years of gifts into 2025 through a donor-advised fund, donors may maximize tax efficiency while still distributing grants to charities over time.

Retirement planning in a new regulatory environment

One of the most significant shifts in 2025 has been the reinstatement of required minimum distributions (RMDs) for certain inherited accounts — rules that have been waived in previous years.

Many beneficiaries of retirement accounts inherited after December 31, 2019, are once again required to take RMDs and must fully distribute the account within a 10-year window.

This nuance has caught some beneficiaries by surprise, underscoring the importance of reviewing inherited IRA strategies now.

In many cases, distributing more than the minimum can be advantageous, particularly if future income is expected to rise or if tax bracket management is a priority.

We encourage clients not to wait until the end of the 10-year window but to evaluate whether distributions annually can help manage long-term tax exposure.

For retirees and pre-retirees, traditional RMDs also remain an important planning item. Individuals aged 73 or older must take 2025 distributions by December 31 unless it is their first RMD year.

Qualified c haritable d istributions (QCDs) continue to be a powerful strategy, allowing individuals aged 70½ or older to direct up to $108,000 of IRA distributions to charity, potentially reducing taxable income.

Preparing for 2026 with intention

As we look ahead, we expect several themes will dominate the 2026 financial landscape: evolving tax rules, rising health care costs and a continued emphasis on building resilient financial foundations.

Business owners should revisit q ualified b usiness i ncome (QBI) deductions, which remain a valuable but sometimes underused planning tool.

Individuals should ensure that beneficiary designations, insurance information and estate documents are current — especially following major life events.

Ultimately, we believe effective planning is not about reacting to yearly rule changes — it is about creating a long-term strategy that adapts as life evolves.

As we close out 2025, I encourage everyone to take time to reflect not just on financial tasks, but on the goals, values and priorities that drive your decision-making.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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As the chief planning officer, Jennifer works with the planning, insurance and generosity teams to deliver support to advisers and a personalized experience to SignatureFD clients. She is involved in all levels of servicing clients’ financial planning needs, including developing and implementing comprehensive wealth management programs in cash flow, retirement planning, risk management and insurance, tax planning and education funding in an integrated way. She aims to ensure each client has a consistent and holistic experience by integrating the firm’s various disciplines into financial planning. She seeks to help clients achieve their Net Worthwhile® by coordinating and pursuing their goals in SignatureFD’s four pillars of wealth activation: Grow, Protect, Give and Live.