Tax to do’s before the year 2025 ends
Sunbridge Advisory Client Newsletter | November 2025
After the last tax update I wrote in August, I was hoping to establish a regular cadence in posting but the September and October tax deadlines got the best of my time.
Happy to have worked with many of you to close out 2024!
So here we are, in November, closing in on the holidays and I wanted to put together a checklist you should consider going through to shield your tax bill from surprises in April 2026.
I’m focusing this checklist on tax advantaged retirement accounts.
They are by far the easiest and most important levers business owners and high income earners must pull to mitigate their tax bill. While many focus on deductions, which eventually reduce your income. I think the smarter way to go about your finances is to make your hard earned money work for you in the long term. And that’s what retirement accounts do best. Think of these accounts as tokens that your elected officials (that you pay top dollar to) fought for.
Also, if you haven’t scheduled an appointment or call with your wealth advisor this year, I’d highlight recommend you do so by early next month.
An overview of tax advantaged retirement accounts
Below is an overview of key tax advantaged retirement accounts you should consider adding to your portfolio if you haven’t yet.
Pay close attention to column #3 and #5 for income phase out ranges and key restrictions.
Account Type | Maximum Contribution (Annual) | Income Phase-Out Ranges | Contribution Deadline | Key Restrictions |
|---|---|---|---|---|
Traditional IRA | $7,000 | $77,000-$87,000 (single) $123,000 -$143,000 (joint) | April 15, 2026 | Deductibility phases out if covered by employer plan |
Roth IRA | $7,000 | $138,000-$153,000 (single) $218,000-$228,000 (joint) | April 15, 2026 | No contributions above income limits |
401(k)/403(b) | $23,000 | No income limits | December 31, 2025 | Employer plan required |
SEP-IRA | Lesser of $69,000 or 25% of compensation | No income limits | Tax deadline + extensions | Self-employed or small business |
Solo 401(k) | $69,000 (total, below cutoff) | No income limits | Dec 31 (employee); Tax deadline (employer) | Self-employed only |
SIMPLE IRA | $16,000 | No income limits | December 31, 2025 | Small employer plans |
Health Savings Accounts (HSA)* *Not a retirement account | $4,150 (self-only) / $8,300 (family) + $1,000 catch-up if 55+ | No income limits (but must be covered by a high-deductible health plan [HDHP]) | April 15, 2026 | Withdrawals for qualified medical expenses are tax-free; non-medical withdrawals before 65 incur income tax + 20% penalty |
Key Questions to Ask Your Financial Advisor
While out team help you with your tax fillings and planning, a lot of you rely on financial advisors to place money on your behalf. Some taxable events often come out of their transactions. That leads to a lot of 1099 surprises during tax season.
To avoid these surprises, I’d highly recommend you ask your wealth advisor the following questions:
Have any of my recent investment transactions triggered taxable events this year?
e.g., capital gains from fund sales, dividends, or rebalancing activities
Should I realize gains or harvest losses before year-end?
This helps optimize your overall 2025 tax bill.
Am I on track to maximize my retirement contributions for 2025?
Confirm whether you’re hitting all IRA, 401(k), or SEP-IRA limits.
Does a Roth conversion make sense given my current income and future tax outlook?
Are my investments placed in the most tax-efficient accounts?
For instance, keeping bonds or REITs in tax-deferred accounts.
Do any of my funds generate unexpected taxable distributions in December?
Should we adjust my portfolio to account for upcoming required minimum distributions (RMDs)?
Are there opportunities to make charitable contributions directly from my investments?
e.g., donating appreciated stock or using a donor-advised fund.
What are my expected capital gains or losses for 2025; and how can I plan around them?
Year-End Action Items
And whether you have an Advisor or not, below is a checklist of actions I’d recommend you go through by year end to tighten any loose end:
Before December 31:
Max Out Retirement Contributions
Top off your 401(k), Roth IRA, or SEP-IRA before the deadlines. These accounts are your most powerful legal tax shelters.Check Employer Matches (Most important lever for W2 employees)
Don’t leave free money on the table, confirm you’ve contributed enough to capture your full employer match.Review 2025 Income and Consider a Roth Conversion
If this year’s income is lower than usual, a partial Roth conversion might make sense while your tax rate is favorable.Fund Your HSA (if eligible)
HSAs act like “triple-tax shelters”:Deductible contributions,
Tax-free growth, and
Tax-free withdrawals for medical expenses.
Make Final 401(k) Payroll Adjustments
Ensure your December paychecks reflect any last-minute changes to hit contribution goals before year-end.Plan for Q4 Estimated Tax Payments
If you had strong profits this year, make your final estimated payment by January 15 to avoid underpayment penalties.Harvest Tax Losses or Gains
Review your investment accounts for opportunities to offset gains with losses or realize gains in a low-income year.Review Your Business Deductions
Prepay qualified 2026 expenses, purchase needed equipment, or make charitable contributions before December 31 to lock in deductions.
Feel free to reach out for a tax planning appointment this year.
Sunbridge Advisory
Your dedicated finance and tax team
DISCLAIMER OF TAX ADVICE: Any discussion contained herein cannot be considered to be tax advice. Actual tax advice would require a detailed and careful analysis of the facts and applicable law, which we expect would be time consuming and costly. We have not made and have not been asked to make that type of analysis in connection with any advice given in this e-mail/newsletter. As a result, we are required to advise you that any Federal tax advice rendered in this e-mail is not intended or written to be used and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS. In the event you would like us to perform the type of analysis that is necessary for us to provide an opinion, that does not require the above disclaimer, as always, please feel free to contact us