Your ultimate year-end tax checklist: 6 moves to maximize every dollar

The year may be wrapping up, but this isn’t the time to slow down—it’s the time to take action. Before you close the books on 2025, make sure you’re not leaving money on the table. This year-end tax checklist outlines six steps to help you maximize tax savings, optimize your retirement accounts and set up for a stronger 2026.

1. Put more toward your future—and less toward taxes

The simplest year-end move? Maximize your retirement contributions. It’s one of the most effective ways to reduce taxable income while putting more of your money to work toward your long-term goals. You can contribute to both a 401(k) and an IRA in the same year—providing multiple ways to capture tax-advantaged growth. Just make sure you don’t exceed IRS limits across accounts which can trigger penalties and erode your hard-earned gains.

For 401(k)s, contributions must be made by December 31, 2025. For IRAs, you have until April 15, 2026 (Tax Day)—but contributing earlier lets your capital start compounding sooner.

2. Diversify your tax strategy like your portfolio

Tax diversification is just as important as portfolio diversification. If you’re in a lower-income year or expect higher tax rates ahead, converting some or all of your traditional IRA into a Roth IRA could be a smart move. Roth IRAs are funded with after-tax dollars, meaning you’ll pay taxes on the conversion now, but future growth and qualified withdrawals are tax-free. To count toward your 2025 tax year, Roth conversions must be completed by December 31, 2025.

Not sure what your future income or tax landscape will look like? Consider contributing to both traditional and Roth accounts (up to the annual limit) to stay flexible as your outlook evolves.

Another tax-smart strategy: If you’re 70½ or older, consider exploring Qualified Charitable Distributions (QCDs). QCDs allow you to donate directly from your IRA (up to the IRS limit) to a qualified charity and can count toward your Required Minimum Distribution (RMD). It’s a way to give back and lower your tax exposure at the same time.

3. Uncover hidden capital—power up forgotten 401(k)s

If you’ve changed employers a few times, there’s a chance you’ve left behind one—or more—401(k) accounts. Those forgotten 401(k)s might hold more value than you think and can serve as an unexpected source of capital ready to be put back to work for your financial goals. Use the U.S. Department of Labor’s database to locate old plans. If you find any, consider rolling over orphaned accounts into a self-directed IRA (SDIRA), which can help pave the way for your next investment move—whether that’s private equity, private credit, real estate or other opportunities. Here are five questions to ask when considering if an SDIRA is right for you.

4. Pay yourself before the IRS takes a cut

If you’re 73 or older, the IRS requires you to take a required minimum distribution (RMD) from your retirement accounts each year. Missing your RMD can trigger a 25% penalty on the amount you didn’t withdraw (reduced to 10% if corrected within two years).

You can take it at any point during the year, but it must be completed by December 31—unless you turn 73 in 2025. In that case, you have until April 1, 2026, to take your first RMD. Use the IRS worksheet to calculate your RMD.

If you hold multiple IRAs, you can aggregate your RMDs and take the total amount from one or more IRA accounts. When in doubt, talk with your financial advisor or a tax professional.

5. Take a pulse check on your investment strategy

You’ve likely made strong plays this year—now’s the time to make sure your overall investment strategy still aligns with your long-term goals.

Ask yourself:

• Am I happy with my current investment mix and asset allocation?
• Am I overexposed to one sector or asset class, or should I explore new opportunities?
• Do I have cash sitting idle that could be put to work?
• Will I have liquidity needs in 2026 that I should plan for now?

Moves to consider:

• Explore whether it’s time to expand your retirement strategy—and determine if your IRA allows you to diversify across public and private investments to better align with your long-term goals.
• A check-in with your financial advisor or tax professional can help you ensure your strategy is positioned for 2026 and beyond.

6. Protect what you’ve built — keep your records up to date

Life happens—make sure your documentation keeps up. Major life events are important triggers to review your beneficiaries, contact details, and account information across all your financial accounts and providers.

Mistakes on beneficiary forms are some of the most common—and costly—errors in retirement planning. Talk with your estate planning attorney or financial advisor about your legacy goals and situation.

Make the right moves before 2025 ends

Small actions now can lead to meaningful gains later. We hope this checklist helps you close out the year strong—download the quick one-page version and keep it handy as you plan.

If this checklist inspired you to explore new ways to put your retirement dollars to work through private market opportunities—Forge Trust can help. Open an SDIRA today to start investing for what’s next.