5 Smart Tax Moves to Make Before Year-End 

As the fall approaches, it’s easy to get caught up in travel plans, family gatherings, and shopping lists. But for anyone between the ages of 45 and 65, the end of the year is also one of the most important times to make smart tax moves. 

Why? Because the window between now and December 31st can determine how much you keep in your pocket today — and how much flexibility you’ll have with your income in retirement. 

Here are five practical tax strategies to consider before the year wraps up. 

1. Max Out Retirement Contributions (and Catch-Up Provisions) 

Your peak earning years are the perfect time to take advantage of higher contribution limits. In 2025, you can contribute up to $23,000 to a 401(k) or 403(b) — and if you’re 50 or older, you get an additional $7,500 catch-up contribution, for a total of $30,500. 

For IRAs, the contribution limit is $7,000, plus a $1,000 catch-up if you’re 50 or older. 

Every extra dollar you contribute lowers your taxable income today (if you’re using pre-tax accounts) and strengthens your retirement nest egg. 

2. Consider Partial Roth Conversions

    

If you’re in your 50s or early 60s, you may have a window of lower tax years before Social Security or Required Minimum Distributions (RMDs) kick in. That’s the perfect time to think about converting some of your traditional retirement savings into a Roth IRA. 

Roth conversions mean paying taxes on the money now — but locking in today’s historically low rates. Down the road, withdrawals will be tax-free, giving you more flexibility and potentially reducing the tax bite on Social Security and Medicare. 

3. Maximize Health Savings Accounts (HSAs) 

If you’re enrolled in a High Deductible Health Plan, don’t overlook your HSA. Think of it as the “stealth retirement account” with a triple tax advantage: 

1. Contributions are tax-deductible. 

1. Money grows tax-free. 

1. Withdrawals for qualified medical expenses are tax-free. 

For 2025, you can contribute up to $4,300 for individuals and $8,550 for families, with an extra $1,000 catch-up if you’re 55 or older. 

At this stage of life, an HSA isn’t just for covering medical bills today — it’s a way to set aside tax-free money for the healthcare costs you’ll almost certainly face in retirement. 

4. Give to Charity the Smart Way 

If you’re charitably inclined, there are ways to make your gifts go further while lowering your tax bill: 

• Donate appreciated stock or mutual funds instead of cash — you avoid paying capital gains while still taking the deduction. 

• Use bunching strategies: combine multiple years of gifts into one tax year so you can itemize deductions and maximize your impact. 

• For bigger givers, a Donor Advised Fund (DAF) lets you take the deduction now but spread out gifts in the future. 

5. Review Your Withholding and Retirement Income Plan 

The end of the year is the time to make sure you’re not heading for an April surprise. Check your paystub, retirement account withdrawals, or pension withholdings. Adjust if needed to cover what you’ll owe. 

And if you’re nearing retirement age, remember: taxes don’t go away when you stop working. Planning today helps you avoid bracket creep, Social Security taxation, and higher Medicare premiums (IRMAA surcharges). 

The Bottom Line 

For the middle class, ages 45–65 is a critical planning window. The decisions you make now can: 

• Lower your current tax bill. 

• Give you more control over retirement withdrawals. 

• Protect you from unpleasant surprises when Social Security and Medicare come into play. 

Don’t wait until January — once the year closes, so do many of these opportunities. 

The Fit Wealth Show is brought to you by Plan Group Financial, Inc. (PGF) d/b/a Fit Wealth Advisors. PGF d/b/a Fit Wealth Advisors is an investment adviser registered under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. This presentation has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Past performance is not indicative of future results.