Austin Stuhr, OLP Financial Advisor with Cornerstone Investments
As we head into the home stretch of this year, it’s a great time to take a look at your finances and make sure you’re positioned well for tax season and the year ahead.
1. Review Key Tax Changes for 2025 [1]
Several standard IRS inflation adjustments kicked in for 2025, including:
- A higher standard deduction
- Updates to federal tax brackets
- Adjusted limits for certain credits and deductions
Even small shifts can impact whether you should itemize or take the standard deduction. A quick conversation with your tax professional before year-end aims to ensure you’re choosing the most tax-efficient path.
2. Max Out Retirement Accounts [2]
Before December 31, review your workplace or personal retirement account contributions.
For 2025, the IRS increased limits for many plans:
- 401(k)/403(b): $23,000
- Catch-up (age 50+): $7,500
If you’re self-employed, a SEP IRA or Solo 401(k) may offer additional planning options — and those contributions can sometimes be made up to your tax filing deadline.
If you’ve had a profitable year or want to reduce taxable income, bumping up contributions now can make a meaningful difference.
3. Consider a Roth Conversion While Rates Are Still Favorable [3]
Current federal income tax rates put in place under the Tax Cuts and Jobs Act are scheduled to sunset after 2025, reverting to higher, pre-2018 levels unless Congress acts.
Because of that, 2025 may be a strong window for a partial Roth conversion if:
- You expect to be in a higher tax bracket later
- You want tax-free income in retirement
- You have room in your current bracket
Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.
Work with a tax advisor to determine how much you can convert without pushing yourself into a higher bracket.
4. Don’t Forget Charitable Giving [4][5]
If you plan to itemize, donations made by December 31 can potentially reduce your 2025 taxable income.
Other options include:
- Qualified charitable distributions (QCDs) from an IRA for those age 70½+ [4]
- Gifts of grain or livestock, which can be extremely tax-efficient for farmers when structured correctly [5]
Always coordinate gifts of agricultural commodities with your tax advisor and elevator/co-op to ensure proper handling.
5. Review Your Investment Gains—and Losses [6]
If you have a taxable investment account, now’s the time to look at realized capital gains.
You may be able to:
- Sell losing positions to offset gains (tax-loss harvesting)
- Rebalance your portfolio without triggering unnecessary taxes (but rebalancing also may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss)
- Set aside funds now if you realized significant gains so April isn’t a surprise
The goal isn’t timing the market, just keeping your portfolio tax-efficient.
6. Use Up Remaining HSA or FSA Dollars [7][8]
A quick reminder:
- FSAs are often “use it or lose it,” depending on your employer’s rules. Some offer a small rollover or grace period, but many do not.
- HSAs never expire, but it’s still smart to confirm your 2025 contributions are on track.
For 2025, HSA limits are [8]:
- Self-only coverage: $4,300
- Family coverage: $8,550
- Catch-up (age 55+): $1,000
7. Revisit Withholding and Estimated Taxes [9]
If your income changed this year due to a strong crop, higher business income, bonuses, or a new side job, your tax withholding or estimated payments may need adjusting.
Underpayment penalties can hit people whose income fluctuates throughout the year. A quick review now can prevent a surprise bill in April.
8. Start Laying the Groundwork for 2026 [10]
Winter is the perfect time to think ahead. Consider your goals for next year:
- Paying down debt
- Boosting retirement contributions
- Planning a large purchase
- Setting up or contributing to a Nebraska NEST 529 Plan (the state allows a deduction up to $10,000 per tax filer per year)
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
References
- IRS. 2025 Inflation Adjustments and Tax Bracket Updates. (2025).
- IRS. Retirement Plan Contribution Limits for 2025. (2025).
- Tax Foundation. Expiration of the Tax Cuts and Jobs Act Individual Provisions. (2025).
- IRS Publication 526. Charitable Contributions. (2024).
- University of Nebraska–Lincoln Extension. Charitable Gifts of Grain and Livestock. (2024).
- FINRA. Understanding Tax-Loss Harvesting. (2024).
- U.S. Department of Labor. Flexible Spending Account Rules. (2024).
- IRS. HSA Contribution Limits for 2025. (2025).
- IRS Publication 505. Tax Withholding and Estimated Tax. (2025).
- Nebraska State Treasurer. NEST 529 College Savings Plan – State Tax Benefits. (2025).
