As the end of the year approaches, many tax planning opportunities begin to close. While there are numerous strategies available, most individuals and families benefit most from focusing on just a few core areas. Below are the three most common and impactful year-end tax strategies to review before December 31.

1. Maximize Retirement Contributions

One of the simplest and most effective ways to reduce current-year taxable income is to fully fund available retirement accounts.

• Contributions to pre-tax employer plans (401(k), 403(b), 457) reduce taxable income dollar-for-dollar

• IRA contributions may be deductible depending on income and plan coverage

• Catch-up contributions allow individuals age 50+ to save even more on a tax-advantaged basis

Even if cash flow limits prevent maxing out accounts, increasing contributions before year-end can meaningfully impact both taxes and long-term retirement readiness.

2. Harvest Capital Losses (and Manage Gains)

Reviewing taxable investment accounts before year-end can help manage capital gains exposure.

• Capital losses can offset realized capital gains

• Up to $3,000 of excess losses may offset ordinary income

• Unused losses can be carried forward to future years

• Investment changes must be coordinated carefully to avoid wash sale violations

This strategy is especially relevant in years with market volatility or when investments have been sold at a gain.

3. Evaluate Roth Conversion Opportunities

A Roth conversion can improve long-term tax efficiency by shifting assets from tax-deferred accounts into tax-free accounts.

This strategy may be appropriate when:

• Income is temporarily lower than normal

• You are in a relatively low tax bracket

• You expect higher future tax rates

• Reducing future required minimum distributions is a priority

Because Roth conversions increase current-year taxable income, they should be analyzed carefully and implemented intentionally.

Final Thoughts

Effective year-end tax planning doesn’t require dozens of strategies—just a focused review of the areas that matter most. Coordinating retirement contributions, investment tax management, and long-term tax positioning can help improve after-tax outcomes and keep your financial plan on track.

As always, tax strategies should be evaluated based on your individual circumstances and in coordination with a fiduciary advisor and tax professional.