2025 Year-End Financial Reset: Your Roadmap to a Strong Start in 2026

For successful individuals and business owners, year-end financial planning isn’t just about checking boxes–it’s about strategically positioning wealth for long-term tax efficiency, maximizing business value, and protecting what you’ve built.

Higher income, complex portfolios, business liquidity events, multi-generational legacy planning, and tax-sensitive concentrated assets all demand a more strategic approach as we embark on 2026.

Key Changes Impacting HNW and Business Owners in 2026

Retirement contribution limits are rising, which means greater room for tax-advantaged savings:

401(k), 403(b), most 457 plans: Limit increases to $24,500 in 2026 (from $23,500 in 2025).

Catch-up contributions (50+): $8,000 in 2026 (vs $7,500 in 2025).

IRA limits: $7,500 in 2026 ($8,600 if 50+).

Business owners using Solo 401(k), SEP, or SIMPLE IRAs may unlock even greater deduction opportunities, especially when optimizing salary vs. distribution strategies.

Additionally, high-net-worth households should assess potential future changes to estate and tax policy, as accelerating certain strategies in 2025 may lock in current advantages.

Elite 2025–2026 Year-End Wealth Moves

Before December 31, 2025

Max Employer-Sponsored Retirement Contributions
Target full $23,500 + catch-up if eligible — high earners benefit the most from pre-tax reductions.

Tax-Loss Harvesting & Capital Gains Strategy
Now is the prime time to offset gains from business sales, RSUs, or real estate and boost long-term tax efficiency. Consider pairing gains with charitable contributions of highly appreciated stock could potentially eliminate capital gains entirely.

Charitable Giving Optimization
HNW households may benefit from:

Donor-Advised Funds (DAFs)

Charitable remainder trusts (CRTs)

Qualified charitable distributions if applicable

Family foundations for multi-generational philanthropy strategy
Charitable lead annuity or unitrusts for high-income tax reduction

Accelerating charitable gifts into 2025 may improve tax positioning — especially if you anticipate income from a sale or liquidity event.

Advanced Gifting & Wealth Transfer

Accelerated 529 funding (“5-year gift front-loading”) to reduce taxable estate sooner

Utilize higher lifetime gift/estate exemptions ahead of potential sunset changes

Intrafamily loans or note refinancing while interest rates remain favorable

Transfer closely held business interests ahead of growth events

Business-Owner Tax Planning
If your income fluctuates due to ownership distributions, consider:

Bonus timing

Section 179 expensing & accelerated depreciation

State & local tax positioning

Year-end bookkeeping and cash-flow restructuring

Partial liquidity planning: structured payouts to spread tax exposure

Reviewing qualified small business stock (QSBS) eligibility for future exits

Use FSA / Dependent Care Allocations
Avoid “use-it-or-lose-it” deadlines where applicable.

By April 15, 2026 (Tax Filing Deadline)

Fund IRAs or Backdoor Roths for 2025
HNW individuals often exceed Roth limits, so consider Backdoor Roth conversions. IRA contributions for 2025 may be made until the tax-filing deadline. Mega Backdoor Roth strategies may also apply for business owners with plan design flexibility.

HSA Strategic Funding
Triple tax advantage if eligible: pre-tax contributions, tax-free growth, tax-free qualified withdrawals. Unused HSA assets can serve as a powerful retirement medical fund—a major cost consideration for HNW retirees.

Plan RMD Timing for Tax Efficiency
If turning 73 in 2025:

1st RMD by April 1, 2026

2nd RMD still required by December 31, 2026

This could double taxable income in one year if not planned carefully. Coordinate with charitable strategies (e.g., QCDs) to reduce your tax burden.

Advanced Wealth Strategies for HNW Individuals

Roth Conversions
Ideal in lower-income years or pre-retirement window.
Must take RMDs first if applicable.
Large conversions can also help reduce future estate tax exposure.

Estate & Legacy Planning in Motion
End-of-year is a good time to review:

Lifetime exclusion usage

Trust structures

Generational gifting strategies

Annual gift exclusions allow compounding multi-year wealth transfer. Explore SLATs, GRATs, IDGTs, and multi-tier trust structures for asset growth outside the taxable estate.

Concentrated Equity Risk Management
Executives and founders may need:

10b5-1 trading plans

Structured sales around liquidity events

Collar or hedging strategies

Premium-financed life insurance to offset future estate taxes

If You’re a Business Owner

You have additional year-end levers:

Year-end valuation & exit planning review: Know your trajectory toward a future liquidity event.

S-Corp salary/distribution strategy: Reduce employment taxes + maximize retirement plan contributions

Retirement plan design upgrades: “Supercharged” tax deferral for owners.

Corporate structure reevaluation: Prepare for regulatory + tax policy shifts.

Smart reinvestment into the business: Accelerated deductions + improved enterprise value.

Consider gifting minority business interests before valuation increases

We recommend updating your business valuation annually—long before you decide to sell—so value gaps can be addressed proactively.

Sample 2026 Wealth Calendar

January: Reset portfolio allocations, update 2026 retirement contribution automation.

February: Review business KPIs and forecast compensation and cash flow.

By March: Confirm IRA/HSA funding for 2025.

May-August: Mid-year tax assessment: income shifts? model Roth conversions and charitable timing.

Q4: Lock in tax strategy, prep for gifting, execute wealth transfer moves and business liquidity modeling.

Getting Ahead of the Next Year

Year-end isn’t the finish line—it’s a wealth-building strategy moment.

For high-net-worth families and business owners, the decisions you make right now about taxes, retirement, business structure, and wealth transfer can meaningfully shape the next decade of your financial life—and your family’s future for generations.