Why Now is the Best Time for Year-End Tax Planning
By Mark Sipos, LFG Tax Director
While the holiday season may seem far away, the final quarter of the year is the most important time to prepare for taxes. Once the calendar turns, your options for reducing tax liability and maximizing savings narrow significantly. Taking action now allows for flexibility and better results.
One of the first steps is reviewing income, deductions, and potential tax strategies while there is still time to implement them. For some, it may make sense to defer income to the new year or accelerate expenses into the current year. Charitable contributions and pre-paying certain taxes are additional ways that have the potential to strengthen your tax position before December 31.
The new “Senior Bonus”, an additional $6,000 per person for those age 65 and over, can be a great opportunity to create tax savings, increase ROTH conversions, and help offset taxes on Social Security income. There are income thresholds that can impact the amount you can deduct, so careful planning is important.
Investors should also consider tax-loss harvesting, a strategy that offsets gains with underperforming investments. Starting this process early can help maximize tax benefits and prepare portfolios for the year ahead.
Retirement contributions are another key area. Individuals still have time to maximize 401(k), 403(b), 457, Health Savings Accounts, and Flexible Spending Plans. Business owners can take advantage of SEPs, SIMPLEs, or even cash balance plans. Beginning in 2025, individuals ages 60-63 can qualify for “super” catch-up for contributions, which increases the contribution to $11,250 from $7,500. However, beginning in 2026, if earnings are $145,000 or greater, catch-up contributions must go to a ROTH.
For those approaching or in retirement, required minimum distributions (RMDs) need special attention. Missing deadlines could increase your tax bracket and Medicare premiums, but strategies like Qualified Charitable Distributions can help meet requirements while reducing taxes.
This is also a good time of year to consider backdoor ROTH conversions for those whose income is above the Roth income phaseouts. Traditional ROTH conversions can be a great tool for retirement planning but discuss with your tax advisor to see if it makes more sense to convert this year or next year. Make sure that discussion includes tax brackets, Medicare premium thresholds, and LTGC tax income thresholds.
Business owners may also want to evaluate the timing of major purchases. In certain cases, equipment and asset investments may qualify for immediate write-offs, significantly impacting year-end tax results.
The bottom line: the fourth quarter is the ideal time to align tax and financial planning. Having experienced financial and tax professionals in your corner who know the ins and outs of these rules and how to apply it to your specific situation is essential. If you have questions or want to make sure you’re prepared before we enter the new year, call our team today at 216-520-1711. We’re here to help!
Terms and Conditions | Privacy Policy | Disclosures
Case studies are intended to illustrate the types of financial issues faced by actual clients. They should not be construed as a testimonial for or endorsement of Lineweaver Wealth Advisors. They do not represent the experience of any advisory client. Each client’s situation is different, and their goals may not always be achieved. Lineweaver Wealth Advisors, LLC, is not engaged in the practice of law or accounting. Tax information provided is general in nature and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation. Tax rules and regulations are subject to change at any time.
Crain's Cleveland Business is a print and online newspaper delivering local business news and information to Cleveland's business executives, which is published by Crain Communications Inc. The Crain's list may employ different methodology than described above for similar designations granted in other years. No clients were consulted and no fees were paid to determine the winners; the award is based on assets under management. Neither the participating candidates nor their employees pay a fee in exchange for inclusion on Crain's List. However, recipients may pay a fee to Crain, an affiliate, or an unaffiliated third party in exchange for plaques or article reprints commemorating the designation. The publication should not be construed by a client or prospective client as a guarantee that they will experience a certain level of results if the recipient is engaged, or continues to be engaged, to provide investment advisory services; and should not be construed as a current or past endorsement of the recipient by any of its clients. In 2025, 2024, 2020 and 2019 Lineweaver Wealth Advisors (“LWA”) was ranked in the Top 25 of Crain’s of Cleveland’s annual list of Registered Investment Advisors. In 2023, LWA was ranked in the Top 15 of Crain’s of Cleveland’s annual list of Registered Investment Advisors. In 2021 and 2022, LWA was ranked in the Top 20 of Crain’s of Cleveland’s annual list of Registered Investment Advisors. For all years the awards were based on assets under management.
Nominees in the Top 100 Magazine selections are not required to pay a fee for consideration. Individuals appearing in half and full page editorials, have paid a fee for additional exposure. Candidates for consideration are selected utilizing proprietary software. Top 100 Magazine analyzes the results before making their final selections. Financial Professionals and/or wealth managers must also met the following criteria; 1. Be registered with the SEC as a registered investment advisor or a registered investment advisor representative; 2. Have no more than 1 filed complaint with a regulatory agency; 3.Never been convicted of a felony. Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the Financial Professional by any client nor are they representative of any one client's evaluation. Participants for the Top 100 in Finance appearance were reviewed in 2022, and recognized in March of 2023. Lineweaver Financial Group appeared in Money magazine in 2015, Fortune Magazine in 2016, WTAM 1100 in 2018, Forbes in 2020, Channel 5 in 2020, and Top 100 in Finance in 2023.
Lineweaver Financial Group ©
Powered by 
Virteom