The window is closing on 2025, but there’s still time to make decisions that can reduce taxes, protect your income, and strengthen your retirement strategy.
Three areas deserve extra attention right now:
- Required Minimum Distributions (RMDs): Traditional Pre-Tax retirement accounts such as Traditional IRAs (not Roth), 401(k) / 403(b) / 401(a) or Inherited IRAs
- Roth conversions
- Medicare open enrollment
Each plays a distinct role, but they’re most effective when considered together as part of a broader, coordinated plan.
Let’s walk through what’s worth reviewing before year-end.
- Required Minimum Distributions (RMDs)
If you’re age 73 or older, you’re required to take RMDs from traditional retirement accounts by December 31. Missing that deadline can result in steep penalties, but even when taken correctly, RMDs can introduce ripple effects across your tax bracket, Social Security taxation, or Medicare premiums.
What to consider:
- Are you confident your distributions have been met across all accounts?
- How does this year’s RMD affect your overall income strategy?
- Are there opportunities to use distributions in ways that reflect your broader goals such as charitable giving or tax smoothing?
- Roth Conversions
In certain situations, converting a portion of traditional IRA assets to a Roth IRA can provide long-term flexibility and tax benefits. The window to do that for this tax year closes December 31, and the right amount to convert (if any) depends on multiple factors.
What to consider:
- Does your current tax bracket create an opportunity this year?
- Are you trying to reduce future RMDs or create more tax-free income?
- How does this decision interact with other parts of your plan such as legacy goals or healthcare expenses?
- Medicare Open Enrollment
Between October 15 and December 7, Medicare participants have the chance to review and change plans. Many people stay with the same coverage year after year, but even small changes in premiums, formularies, or provider networks can have meaningful effects.
What to consider:
- Has your current plan changed in ways that affect cost or access?
- Have your healthcare needs shifted since you last reviewed your options?
- Is there a more efficient or cost-effective plan that better fits your situation?
It's All Connected
RMDs affect taxes. Taxes affect healthcare premiums. Healthcare costs affect your income plan. Your income plan affects your legacy. These are the real conversations that happen when you take a holistic approach to retirement, not just a reactive one.
We help clients think through these seasonal decisions as part of a bigger, coordinated strategy. That means revisiting the five key areas that matter most: income, investments, taxes, healthcare, and legacy. The goal isn’t perfection, it’s alignment.
Let’s wrap the year with clarity.
If you’re not sure how these year-end considerations fit into your broader financial picture, now is a good time to check in. A short, focused conversation could uncover opportunities or prevent avoidable mistakes.