As 2025 quickly winds down, now is a great time to review your year-end investment strategy checklist to ensure you’re set up for financial success in 2026. Some tasks may need to be completed before the first of the year, while others simply warrant an annual review. And some considerations may overlap, such as taxes, retirement planning and health savings accounts.
Closing out the year
Every financial portfolio is unique – even between couples – but there are common year-end considerations that most people should evaluate. Given the wide range of topics involved, it’s a good time to contact your Huntington advisor, who can help organize and prioritize your personalized checklist.
Reduce your tax bill
A smart place to start is by exploring ways to reduce your tax liability – especially before the start of a new year. With the passage of H.R. 1, One Big Beautiful Bill Act (OBBBA), several key tax provisions have been changed or extended, making year-end planning even more important.
Consider deferring income
As you plan for year-end, it’s worth exploring whether deferring income to next year could benefit your tax planning – especially if you expect to be in a lower tax bracket in 2026.
For example, you might be able to delay receiving a year-end bonus or postpone collecting business income, rent or payments for services. Doing so could help you push the associated tax liability into the following year.
Even if your income stays consistent, remember that tax bracket thresholds typically increase each year with inflation. And with H.R. 1, One Big Beautiful Bill Act (OBBBA), the current tax brackets are now permanent, which adds more predictability to your long-term planning strategy. That said, if you’re in the highest tax bracket, deferring income may not always be the best move. Under the new law, certain deductions may be limited for high earners in 2026, which could make it more advantageous to recognize income in 2025 instead.
IRA to Roth IRA conversions
Converting a traditional IRA to a Roth IRA can be a smart way to set yourself up for tax-free growth in retirement. Just keep in mind that you’ll owe taxes on the amount you convert now, but qualified withdrawals later on won’t be taxed.
If you’re contributing to a traditional IRA or a pre-tax 401(k), those contributions can help lower your taxable income for the year. But if your modified adjusted gross income (MAGI) is over $150,000 – or $236,000 for married couples – you’re no longer eligible to contribute directly to a Roth IRA1. In that case, some investors may make an after-tax contribution to a traditional IRA, then convert it to a Roth. This approach may not accommodate everyone’s financial situation, so it’s important to talk with your tax advisor before moving forward.
Roth conversions are becoming more common, especially as more people retire with large IRA or 401(k) balances. These accounts can lead to higher taxable income in retirement – and potentially create tax issues for heirs. Converting some of those funds to a Roth now could help reduce future required minimum distributions (RMDs) and lower estate and income taxes down the road.
IRA to Roth IRA example
A 65-year-old retiree has a $2 million IRA rolled over from a 401(k). They don’t need to take RMDs until age 75. Their current income is modest – mostly investment gains and dividends – and they’re in the 22% tax bracket. But once RMDs kick in, they expect to be in the 32% bracket. By converting just enough IRA funds now to stay within the 22% bracket, they could reduce the size of future RMDs and avoid a bigger tax hit later. In addition, they may be able to retain the benefits of certain tax deductions by keeping their future taxable income at a lower level.
Tax-loss harvesting
Tax-loss harvesting – selling investments at a loss to offset capital gains – can be a valuable strategy. For example, if you sold an investment property at a profit, you might offset some of the short-term capital gains tax by selling underperforming stocks.
Itemized deductions
Itemizing deductions can be worthwhile if your eligible expenses exceed the standard deduction. For 2025, the updated standard deduction amounts are2:
- Single filers: $15,750
- Married filing jointly: $31,500
- Head of household: $23,625
- Additional amount for married seniors: $12,000
- Additional amount for unmarried seniors: $6,000
By combining expenses such as medical costs, qualifying interest and state taxes, you may reach the threshold to itemize. Additionally, charitable contributions often qualify for a tax deduction, so be sure to include those in your review.
If it looks like you’ll owe federal income tax for the year, consider increasing your withholding on Form W-4 for the remainder of the year to help cover the shortfall. One advantage of this approach is that withholding is treated as if it were paid evenly throughout the year, regardless of when the money is actually withheld. This can help offset missed or underpaid quarterly estimated tax payments. Don’t forget – you’re always allowed to make extra estimated payments.
Even retirees without employment income can use a similar strategy by making a withdrawal from an IRA and increasing the withholding amount, as this can help avoid penalties and iron out tax obligations.
Annual retirement steps
Year-end is a good time to review your asset allocation across retirement and non-retirement accounts. If you’re 73 years or older, don’t forget to take your Required Minimum Distributions (RMDs) from traditional IRAs and employer-sponsored retirement plans.
Health care accounts
Health care expenses can have a major influence on your tax strategy. While it’s difficult to predict exactly how much you may spend on medical bills each year, there are ways to potentially save money and help protect your financial health.
Flexible spending account (FSA)
With a flexible spending account (FSA), pre-tax dollars can be used to pay for eligible out-of-pocket health care costs, including medical, dental and vision expenses. Employers can make contributions of up to $3,300 to an FSA, but the funds need to be used within the plan year, or they’ll be forfeited3.
Health savings account (HSA)
Meanwhile, a health savings account (HSA) allows unused funds to roll over year to year, meaning you can earn interest and build savings for future medical expenses. The contribution limit for this year is $4,300 for individual coverage and $8,550 for a family, with an additional $1,000 annual contribution for people aged 55 and over4. In most cases, HSA contributions are tax-deductible.
Consider using your HSA as a long-term retirement planning tool. By covering current health care costs – such as co-pays and deductibles – with non-HSA funds while you’re working, you can invest your HSA contributions. This strategy allows you to grow a tax-free pool of funds to use for qualified medical expenses during retirement.
Charitable giving
Charitable contributions remain a key strategy, especially if you itemize deductions on your federal tax return. Generally, you can deduct contributions, but there are limits based on your adjusted gross income (AGI):
- Cash gifts to public charities: Up to 60% of your AGI
- Non-cash gifts: Up to 20-30% of your AGI, depending on the type of asset and organization
- Excess contributions: Can be carried forward for up to five years
Instead of cash, consider donating appreciated assets like stocks. This can increase your tax benefit by avoiding capital gains tax while still receiving a deduction.
New for 2026
Under H.R. 1, One Big Beautiful Bill Act (OBBBA), non-itemizers can now deduct up to $1,000 for single filers and $2,000 for married couples5. For itemizers, charitable deductions must now exceed 0.5% of AGI to qualify.
Additionally, taxpayers in the highest bracket will see their deduction capped. For example, if you're in the 37% tax bracket, your charitable deduction will be limited to 35%, creating both a floor and a ceiling for deductions. Because of this, some donors may want to accelerate their giving into 2025.
That said, many taxpayers may find the actual dollar impact of this change to be minimal—and it may not significantly affect giving behavior.
Qualified charitable distribution (QCD)
If you’re 70 ½ years or older, you can make a qualified charitable distribution (QCD) directly from your IRA to a qualified charity – up to $108,000 annually. This counts toward your RMD and can reduce your taxable income.
QCD example
If you’re required to withdraw $100,000 from your IRA and you donate $50,000 via a QCD, only the remaining $50,000 is taxable.
QCDs can also help lower future RMDs by reducing your IRA balance. Just note that donor-advised funds and private foundations do not qualify for QCDs.
Don’t forget about annual gifts
The annual gift tax exclusion for this year is $19,000 per recipient, without triggering gift tax reporting. For example, a married couple can give up to $38,000 – $19,000 per individual – to each of their children6.
Additionally, direct payments for tuition or medical expenses are excluded from the annual limit.
Make moves to strengthen your balance sheet
Sometimes the most effective tax strategies aren’t about income or deductions – they’re about the structure of your assets. Year-end is a great time to take inventory of your accounts and financial relationships to make sure everything is aligned with your goals.
It might be worth consolidating accounts or reviewing how your assets are positioned. This kind of cleanup can help simplify your financial planning and ensure your strategy is working as efficiently as possible.
We’re here to help
Your Huntington team, in coordination with your tax and legal advisors, can help you determine which year-end strategies are right for you. Choosing the right giving vehicle or tax strategy depends on your income, asset types, family goals, and philanthropic priorities.
Contact your Huntington team or find a location near you for more information on our wealth management services.
