Year-End Planning Tips

As 2025 draws to a close, now is the time to take advantage of strategies that can help reduce taxes, maximize giving, and prepare for the future.

Make sure Required Minimum Distributions (RMDs) are taken.

If you are age 73 or older, you must withdraw your RMD by December 31, 2025. Missing it can trigger a steep IRS penalty (25% of the amount not withdrawn).

Make the most of charitable giving.

Consider bunching multiple years’ gifts into 2025 to exceed the standard deduction. Donating appreciated securities lets you give at fair market value while avoiding capital gains. If you’re over 70½, a Qualified Charitable Distribution from your IRA can also count toward your RMD and reduce taxable income.

Use your annual gift exclusion.

The 2025 gift exclusion ($19,000 per recipient) resets on January 1, 2026. Any gifts you want to count for this year must be completed by December 31, 2025.

Review Medicare Coverage (Open Enrollment).

Medicare open enrollment for 2026 began on October 15 and ends December 7, 2025. River Wealth Advisors is partnering with URL Insurance Group to provide you with Medicare expertise, education and enrollment assistance. Check out the article, “Medicare Annual Enrollment Period is Now Open Through December 7,” to learn more.

Review Estate Documents

With recent tax law changes and the natural changes that happen in life, now is a good time to confirm your will, trust, and beneficiary designations are up to date. Beneficiary forms on retirement accounts and insurance policies override your will, so outdated paperwork can send assets to the wrong place. A quick year-end review helps ensure your legacy reflects your wishes and avoids unintended surprises for your loved ones.

If you’d like to review which of these strategies might apply to your situation, contact your wealth advisor before December 15, 2025 to make the most of these opportunities.