Financial Moves to Consider at Year-End

As we approach the end of the year, it’s important to consider possible financial, tax and estate planning opportunities before December 31. When the One Big Beautiful Bill Act (OBBBA) was passed this summer, it created various new opportunities and complexities to consider. Below are some of the key areas to review with your Corient Wealth Advisor:

Annual gifts

You can make annual gifts to an unlimited number of people (up to $19,000 per recipient in 2025). A married couple may each make such gifts, resulting in gifts totaling up to $38,000 per recipient. They do not count against your lifetime gift exemption ($13.99 million per person in 2025). Over time, these gifts can transfer a significant amount of wealth to the next generation, potentially reducing your overall estate tax liability. It’s important to note that the ability to make these gifts resets at the end of each calendar year, and is not cumulative.

Charitable planning

Many of our clients have a long history of charitable giving where the motivation is not driven primarily by the tax benefits. However,  charitable giving is one of the few income tax deductions where the donor has control over both the timing and the amount of the deduction, providing a unique opportunity to maximize the effectiveness of each gift. When considering a charitable contribution of significant size, we recommend consulting with your wealth advisory team to explore ways to increase  the tax benefit by analyzing the following aspects of the gift:

• Timing of the contribution (current year vs. next year)
• Asset to contribute (cash vs. appreciated securities vs. IRA)
• Recipient of the contribution (directly to the charity vs. a donor-advised fund [DAF] or a foundation)

The OBBBA enacts key changes to charitable deductions beginning in 2026, making 2025 an ideal year to be highly strategic and opportunistic:

• Consider bunching multiple years of charitable giving into 2025 to help maximize your itemized deductions under current rules.
• Utilize DAFs to take a large deduction now, while distributing gifts to charities over time.
• If you're planning a Roth conversion this year (see below), pairing it with charitable giving may help offset the taxable income.
• Note: Starting in 2026, only charitable contributions above 0.5% of adjusted gross income (AGI) will be deductible, which will make small annual donations potentially non-deductible for high earners.

Year-end savings

Ensure you’ve used all available tax-advantaged savings vehicles, such as:

• 401(k), 403(b), and IRA contributions – The 2025 limits are $7,000 for IRAs (plus $1,000 catch-up if over age 50), and $23,500 for the 401(k)/403(b) (plus $7,500 catch-up if over 50, or $11,250 if age 60-63).
• If you are over age 73, confirm that your required minimum distributions (RMDs) are satisfied by year-end. Consider utilizing a qualified charitable distribution (QCD) if over 70.5 years, in order to satisfy your RMD obligations and also meet your charitable goals.

Roth IRA conversions

With tax brackets now permanently extended under the OBBBA, the environment remains favorable for Roth IRA conversions—but strategy and timing are key:

• A Roth conversion in 2025 adds to your taxable income this year. Spreading conversions over multiple years can help manage your tax bracket and avoid unintended consequences, such as increased Medicare premiums or loss of other deductions.
• If you’re already giving charitably or planning to, combining that with a Roth conversion this year may be highly tax efficient.
• if you’re currently taking RMDs, ensure all distributions are completed before initiating a Roth conversion.

Tax-loss harvesting

• We recommend that clients consult with their financial team on an annual basis to estimate their income tax liabilities in advance of the year-end. It’s particularly important to have a good understanding of the breakdown among ordinary income, qualified dividends and long-term/short-term capital gains, as these are taxed at different rates.
• To help limit capital gains recognized, you may be able to harvest capital losses before year-end to offset against short-term and long-term capital gains. Corient looks at possible tax-loss harvesting opportunities in our strategies as a normal course of business, and also offers select investment strategies that focus on generating extra after-tax return by strategically managing an investment portfolio to help minimize tax liabilities. A Corient Wealth Advisor can provide more details on these tax-smart portfolios.

Other OBBBA changes

In addition to what’s outlined above, this recent legislation introduces several other meaningful changes that may create a temporary planning opportunity:

• Higher standard deduction: $31,500 for joint filers in 2025
• Increased State and Local Tax (SALT) deduction cap: $40,000 through 2029, phased out for AGIs over $500,000
• New charitable deduction floors and an above-the-line deduction for non-itemizers (starting 2026)
• Additional senior deduction: Up to $12,000 for joint filers ($6,000 single) for those age 65+ through 2029, phased out starting for AGIs over $150,000 married / $75,000 single

Final thoughts

As always, proactive planning at year-end may significantly improve your tax outcome and align your wealth strategy with recent legislative updates. If you'd like to discuss these opportunities or  explore your unique circumstances, please don’t hesitate to contact your Corient Wealth Advisor.

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