From “super catch-up” contributions for those nearing retirement to new updates under the One Big Beautiful Bill Act (OBBBA), now is the perfect time to ensure your year-end planning is on track.
Check out the list below and contact our office with any questions you may have regarding changes to your personal year-end checklist.
And remember, while the OBBBA is now law, the IRS continues to release guidance as it implements its many provisions. Stay alert for future updates that may affect your personal planning.
Retirement planning
Contribution limits for 401(k) plans are higher this year. If you’re under 50, you can put up to $23,500 into your 401(k) for 2025. You have until December 31st to make your employer plan contributions for this tax year.
Extra boost for ages 60–63. There’s a new “super catch-up” option that lets you add up to $11,250 more, for a total of $34,750. If you’re 50–59 or 64+, your catch-up limit is $7,500, making your total $31,000.
Inherited IRA rules are getting stricter. Starting in 2025, the IRS will fine people who don’t take required withdrawals from inherited IRAs. Most non-spouse beneficiaries need to empty the account within 10 years of the original owner’s death. If you’ve inherited an IRA, talk to a tax or financial pro to make sure you’re on track.
Estate planning
Estate tax exemption is made permanent: The high estate and gift tax exemption (adjusted annually for inflation) was made permanent under the OBBBA. For 2025, the exemption is $13.99 million for individuals/$27.98 million for married couples. In 2026, it increases to $15 million for individuals/$30 million for married couples.
Annual gift tax exclusion amounts increased to $19,000 in cash or other assets per recipient for individual taxpayers ($38,000 for married couples making joint gifts) for 2025, up from $18,000 ($32,000 for married couples) in 2024. Gifts exceeding these amounts to a single recipient will reduce your lifetime gift and estate tax exemption.
Don’t miss these temporary deductions under the OBBBA for tax years 2025 through 2028:
No tax on tips up to $25,000 for workers in qualifying occupations (subject to income phaseouts)
No tax on overtime on up to $12,500 in qualified overtime pay
Car loan interest deduction up to $10,000 for new, personal-use vehicles purchased after 2024 (subject to income phaseouts and other requirements)
Bonus deduction for seniors: Taxpayers aged 65 and older can claim an additional $6,000 deduction/$12,000 for a married couple if both qualify (subject to income phaseouts)
Act quickly to take advantage of clean energy tax credits, which are scheduled to terminate or begin to phase out this year under the OBBBA, including the $7,500 electric vehicle tax credit.
For questions about these and other year-end planning opportunities, schedule a time to talk with Team Treece.
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This information was written by KRW Creative Concepts, a non-affiliate of the broker-dealer.
This communication is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought. For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera firms nor any of its representatives may give legal or tax advice.