10/14/2025
Market swings and tax rules may shift, but smart, year-end preparation still holds.
Here are five strategies that may help you set the stage for 2026 and beyond:
1️⃣ Manage capital gains distributions
Some mutual funds have year-end payouts. Reviewing exposure now might help you manage taxes on “phantom income.”
2️⃣ Harvest losses
Selling losing positions to offset gains (or up to $3K of income each year) is one strategy to consider. Just be aware that the wash-sale rule may apply.
3️⃣ Harvest gains
In years where your income may be lower than average, realizing long-term gains could be a strategy to consider.
4️⃣ Retirement plan contributions
From IRAs to 401(k)s to defined benefit plans, higher contribution limits in 2025 create opportunities to manage current-year taxable income.
5️⃣ Consider Roth conversions
Converting IRA dollars to a Roth IRA can help you manage future taxes on growth and withdrawals, especially in years when income might be lower than usual.
📆 The clock is ticking on 2025 windows. If you’re considering any of these, we’re happy to help.
Consult your Tax professional before modifying your strategy.
Mutual funds and ETFs are sold only by prospectus. Please consider the charges, risks, expenses, and investment objectives carefully before investing. A prospectus containing this and other information about the investment company can be obtained from your financial professional. Read it carefully before you invest or send money.
Once you reach age 73, you must begin taking RMDs from your 401(k), traditional IRA, or other defined contribution plan in most circumstances. Withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10 percent federal income tax penalty.
Roth IRA contributions are phased out for taxpayers with adjusted gross incomes (AGIs) above a certain amount. To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a five-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals can also be taken under certain other circumstances, such as the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals.