Time to Be Intentional with Year-End Planning

As the leaves fall and the calendar edges closer to December 31st, many of our clients begin asking the same question: "Is there anything I still need to do before year-end? And do I still have time to get everything done?" The good news is yes—there's still time to be intentional about your charitable giving, tax planning, and savings strategies.

For many, the fourth quarter brings greater clarity around income for the year, which opens up valuable opportunities to plan wisely and act generously. At John Moore Associates, we believe that wise financial planning is an act of stewardship—a way to align your resources with your values and take advantage of what the tax code allows. As Jesus said, "Give to Caesar what is Caesar's and to God what is God's" (Matthew 22:21). That means paying what we owe, but not a penny more than necessary.

Make Your Generosity Count

As you consider your giving, reflect on these words: "For where your treasure is, there your heart will be also." (Matthew 6:21). Giving is not just a tax strategy—it's a reflection of our hearts and values. When you align your pocketbook to your values, you can make an impact on the world while also creating more opportunities for future generosity.

One of the most impactful strategies available to charitably inclined clients over age 70½ is the Qualified Charitable Distribution (QCD). If you are taking Required Minimum Distributions (RMDs), a QCD allows you to direct up to $108,000 in 2025 from your IRA directly to a qualified charity. These gifts count toward your RMD while lowering your gross income—a win-win for both your tax return and your generosity.

For those who give annually but don’t have enough deductions to itemize, QCDs can offer a way to gain a tax benefit from charitable giving without needing to exceed the standard deduction. It’s a strategy we implement regularly as clients look to finalize their giving in the final weeks of the year.

For those who aren’t yet 70½, don’t have significant IRA assets, or hold highly appreciated investments, an excellent alternative to Qualified Charitable Distributions (QCDs) is to donate appreciated assets such as stocks or mutual funds.

Donating long-term appreciated assets allows you to avoid capital gains tax, claim a deduction for the full fair market value, and even repurchase the security to reset your cost basis. This is why we like to say at JMA, “Friends don’t let friends give cash.” After several strong years in the market, this approach can be an especially tax-efficient way to give.

To further enhance the benefit, you might consider “bunching” several years of charitable gifts into a single tax year. By concentrating donations, you can surpass the standard deduction threshold and itemize your charitable giving—an approach that’s particularly valuable if you expect a lower-income year ahead or the end of your mortgage interest deduction.

Arizona Clients: Don’t forget about Arizona’s dollar-for-dollar tax credits. These allow you to redirect your state tax liability toward causes you care about—a meaningful way to give with impact.

Broader Tax Planning: Stewardship in Action

If 2025 has been a year with significant capital gains, now is the time to review your portfolio for capital loss harvesting opportunities. You may also be able to apply carryforward capital losses from prior years to offset current gains.

On the flip side, if you have realized or carryforward losses available, you may have a unique opportunity to harvest capital gains. This strategy can help you reset cost basis, rebalance, or realize long-term gains at little or no tax cost.

For those considering Roth conversions, the internal deadline for these requests is December 5th. This can be an especially timely move in low-income years or if you anticipate higher tax brackets in the future.

You might also consider prepaying deductible expenses, such as property taxes or estimated state income taxes, to increase your deductions in 2025.

And finally, don’t forget annual gifting to family members. The 2025 exclusion is $19,000 per recipient—a helpful way to transfer wealth without using your lifetime exemption.

Savings Strategies: Looking Ahead with Diligence

Now is the time to confirm you’re making the most of your employer-sponsored retirement plans, such as 401(k)s or 403(b)s. Maximizing contributions not only boosts your long-term savings but can also reduce your taxable income for the year.

If you're eligible, fully funding your Health Savings Account (HSA) offers a triple tax advantage: pre-tax contributions, tax-deferred growth, and tax-free withdrawals for qualified health expenses. For those with Flexible Spending Accounts (FSAs), be sure to use up any remaining balances before year-end. Most FSAs have a "use it or lose it" rule, meaning funds may not carry forward.

Also consider whether you're eligible to contribute to Traditional or Roth IRAs. These can add another layer of tax-deferred or tax-free growth, depending on your income and circumstances.

The Bible reminds us to consider the wisdom of the ant, who stores provisions at the proper time (Proverbs 6:6-8). Likewise, making the most of these tools is a way to plan diligently for the future.

Wrapping Up: Your Year-End Playbook

To help you act intentionally before the year closes, here’s a quick summary of actions to consider:

Charitable Giving

• Execute any QCDs (2025 limit: $108,000 per person)
• Finalize donor-advised fund contributions
• Consider bunching future years of giving into 2025 to surpass the standard deduction
• Donate long-term appreciated assets instead of cash (avoid gains + get a deduction!)
• For Arizona clients: explore dollar-for-dollar charitable tax credits

Tax Planning

• Review and harvest capital losses or apply any carryforward losses
• Consider harvesting capital gains if you have offsetting losses
• Complete Roth conversions
• Prepay property tax or state income tax (if deductible)
• Make annual gifts (2025 limit: $19,000 per recipient)

Savings & Accounts

• Max out 401(k)/403(b) contributions
• Fully fund your HSA
• Use up any FSA balances before year-end
• Contribute to IRAs or Roth IRAs if eligible

Let Us Help

There is still time to act. If you’re unsure what moves are right for you, we’re here to help you finish the year with confidence and clarity. Stewardship doesn’t end when the markets close. It continues as we make thoughtful decisions in every season.

If you'd like a personalized review, we're happy to provide a tax snapshot to help summarize your current year portfolio income and capital gains.