As 2025 draws to a close, many investors are taking a closer look at their financial picture and identifying opportunities to strengthen their long-term plan before the year ends. The right year-end tax planning strategies can help reduce your future tax burden, streamline charitable giving, and position your retirement accounts for greater flexibility in the years ahead. With major tax law changes set to take effect in 2026, this is an especially important moment to be intentional.

Several planning opportunities still remain for those who want to make the most of the current tax landscape. The following strategies can help you lower your taxable income, support the causes you care about, and take advantage of tools that may not be as favorable in future years. Let’s explore three to consider before December 31st.

1. Make Qualified Charitable Distributions from Your Individual Retirement Account (IRA)

A Qualified Charitable Distribution (QCD) allows individuals age 70½ and older to donate directly from their IRA to a qualified charity. This type of donation is excluded from your adjusted gross income (AGI), which reduces your taxable income (and your tax bill).

Why Making QCDs Is a Valuable Year-End Tax Planning Strategy

Since the Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction’s value, the majority of taxpayers have claimed the standard deduction rather than itemized deductions. However, choosing the standard deduction means that you cannot claim charitable contributions as deductions in addition.

With QCDs, you can still receive tax benefits from charitable donations — even if you take the standard deduction. Instead of deducting from your taxable income, these donations aren’t included in your AGI at all, lowering your taxable income up front. 

It’s also important to note that QCDs count toward your Required Minimum Distributions (RMDs), allowing you to meet your annual requirement without increasing taxable income. While the One Big Beautiful Bill Act (OBBBA) will shift deduction and AGI rules starting in 2026, QCDs remain one of the most tax-efficient giving strategies for the 2025 tax year.

Who Can Benefit

• Retirees looking to lower their AGI.
• Charitably inclined taxpayers seeking a more tax-efficient way to give.

How to Complete a QCD Before Year-End

To ensure your QCD is counted for the 2025 end-of-year tax planning, the donation must go directly from your IRA custodian to the charity. Many of our financial planning clients find it helpful to request an IRA checkbook, which allows you to write checks directly from your IRA. This can make ongoing charitable giving simple and seamless throughout the year.

Because the rules can be nuanced and custodians often experience processing delays in December, it’s important to speak with your financial advisor or tax professional before initiating a QCD. They can confirm eligibility, handle timing, and ensure your QCD is completed well before year-end.

2. Donate Appreciated Stock to a Donor Advised Fund (DAF)

A donor-advised fund (DAF) is a charitable giving account that lets you contribute assets, receive an immediate tax deduction, and recommend grants to charities over time. It acts as a flexible, tax-efficient bridge between your investments and the organizations you support. Once you donate assets, such as appreciated stock, they’re removed from your estate and can grow tax-free until you’re ready to distribute them.

Why Donating Appreciated Stock to a DAF Is a Valuable Year-End Tax Planning Strategy

Donating appreciated stock is one of the most effective year-end tax planning strategies because you avoid capital gains tax while still receiving a charitable deduction. By gifting the shares rather than selling them, you increase your impact without increasing your out-of-pocket cost. A DAF enhances this strategy through:

• An immediate tax deduction: Claim it in the year you contribute, even if you grant funds later.
• Flexibility: Give during a high-income year or at year-end, then support charities on your own schedule.
• Administrative ease: The DAF manages liquidation and documentation.
• Tax-free growth: Assets can be invested and potentially grow, increasing future grant potential.

Who Can Benefit

• Investors with highly appreciated holdings in taxable accounts.
• Taxpayers who want to rebalance their portfolios in a tax-efficient manner while supporting charitable causes. 

How to Give Appreciated Stock Before End-of-Year

Start by identifying shares with substantial long-term gains, as these provide the greatest tax advantage. Keep in mind that many charitable organizations need extra time to accept and liquidate stock donations, which can create delays. Working through a DAF, or coordinating directly with your financial advisor, helps to streamline the entire tax planning process. 

3. Consider a Roth Conversion to Optimize Future Taxes

A Roth conversion moves money from a traditional IRA or 401(k) into a Roth IRA. While traditional tax-deferred accounts tax the money you withdraw, Roth accounts tax your contributions instead, providing tax-free growth, tax-free withdrawals, and no RMDs. This makes them a valuable tool to help increase your tax savings down the road.

Why Roth Conversions Are a Valuable Year-End Tax Planning Strategy

A Roth conversion lets you pay taxes now in exchange for tax-free income later. If you expect to retire into a higher tax bracket, or if you’re experiencing a lower-income year, now is the time to contribute or convert to a Roth account.

As you consider your year-end tax planning strategy, be sure to review your income, see how much space remains in your current tax bracket, and decide whether a partial conversion makes sense for your financial situation. 

Who Can Benefit

• Clients in a lower-than-usual income year.
• Those expecting higher taxes in retirement.
• Individuals who want to reduce future RMDs or leave tax-free assets to their heirs.

How to Approach a Year-End Roth Conversion

If you’re considering a Roth conversion this year, start by evaluating how much room remains in your current tax bracket. Converting too much may push you higher, while a targeted partial conversion can be efficient.

Keep in mind that Roth conversions must be completed by December 31st for the tax year in which you want them to apply. There is no grace period like with IRA contributions. Working with your financial advisor ensures the conversion amount supports your long-term plan and year-end tax strategy.

Making the Most of the Final Weeks of 2025

As the year draws to a close, thoughtful, proactive financial planning can make a meaningful difference in the strength and flexibility of your long-term financial picture. If any of these year-end tax planning strategies feel like they may be a good fit, we encourage you to reach out to your Morris Financial Concepts financial planning team. We’re here to help you evaluate your options, coordinate the details, and ensure everything is completed smoothly before December 31st.

At Morris Financial Concepts, our mission is to help you move through each year with clarity, confidence, and peace of mind. As you prepare to welcome 2026, we’re grateful to be your partner in planning and look forward to supporting your financial well-being in the year ahead.

Morris Financial Concepts is an independent investment advisor registered under the Investment Advisors Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about Morris Financial Concepts, including our investment strategies, fees, and objectives, can be found in our ADV Part 2 and/or Form CRS, which is available upon request. All opinions are of our own and are subject to change. This is not investment or tax advice and should not be taken as such. Please consult an advisor before making any financial decisions based on the information provided herein.

Morris Financial Concepts does not provide tax preparation services. Morris Financial Concepts’ sister company, Morris Tax Planning, should instead be consulted for tax preparation services.