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Article

Financial Plans to Make Before 2026 is Upon Us

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Have you considered any financial plans to make before 2026? Do you know the gift and retirement contribution limits for 2025? This article delves into strategies for making the most of 2025 before it’s gone. Items include retirement contributions, gifting and inheritance.

December 12, 2025
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Important Disclosure: Content on our website and in our newsletters is for informational purposes only. The information provided may (or may not) directly apply to your situation. We recommend that readers work directly with a professional advisor when making decisions in the context of their specific situation.

December 31st is coming quickly, don’t wait too long to plan!


As the year-end holidays approach, there are many plans to be made with family and friends. Along with the holiday cheer, there are financial plans to consider as well. Review these financial opportunities and deadlines before 2026 arrives.

Donating to Charity

As we count our many blessings and share time with our loved ones, we can express our thanks through giving to others. Donate to your favorite charity before the end of the year. In general, to be tax deductible, the gift must be made to a qualifying organization and made during the 2025 calendar year.

Making Financial Gifts

Cash and assets may be gifted to children, relatives or even friends, to take advantage of the annual gift tax exclusion. Any individual may gift up to $19,000 this year to as many individuals as he or she desires – and a couple may jointly gift up to $38,000. Whether gifting singly or jointly, there is a lot of leeway before reaching the current $13.99 million lifetime exemption ($27.98 million for couples).

Grandparents, aunts, uncles and parents too, can fund 529 college saving plans this way, but keep in mind that December 31st is the 529 funding deadline for 2025.

Max Out Retirement Plans

Most employers offer a 401(k) or 403(b) plan, and contributions can be made until December 31st to boost annual contributions.

  • This year, the contribution limit on both 401(k) and 403(b) plans is $23,500 for those under age 50, and $31,000 for those 50 and older. For people aged 60 to 63, check to see if the retirement plan allows for an additional $3,750 contribution.
  • For the traditional and Roth individual retirement accounts, contribution limits are $7,000, with the IRA catch‑up contribution limit for individuals aged 50 and over being an additional $1,000.

Did you inherit an IRA? For anyone inheriting an IRA, the rules vary based on whether the beneficiary is a spouse, a minor, and whether the decedent had started taking distributions. Check with your financial professional on the rules for each situation. In some cases, a distribution may need to be taken by December 31st.

Business owners’ retirement plans. Those who are self-employed can save for the future by using a self-directed retirement plan, such as a Simplified Employee Pension (SEP) plan or a one-person 401(k), the so-called Solo (k).

Contributions to SEPs and Solo (k) s are tax-deductible. December 31st is the deadline to set one up, however, contributions can be made as late as April 15th of next year (or mid-October with a federal extension).

Your Financial Advisor

In approaching the end of 2025, there are many rules, deadlines and contribution limits to consider. In thinking about your year-end financial planning, talk to a trusted financial professional to determine what is best for your unique situation.

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