As the holidays are just a few weeks away across Southeastern Wisconsin, the year-end rush brings more than festive cheer. It’s your last chance to optimize finances before the 2026 tax season starts. At The Neal Group, we’ve helped countless local families and businesses turn December deadlines into smart wins. Drawing from IRS updates and proven strategies, here are the top 3 things you should do before December 31st to protect yourself and peace of mind.
1. Maximize Retirement Contributions for Tax Breaks
Time is ticking on 2025 IRA and 401(k) limits. Contribute up to $7,000 to a traditional IRA ($8,000 if 50+) for immediate tax deductions. These will help to lower your adjusted gross income and potentially dodging higher brackets. For 401(k)s, aim for the $23,500 cap (plus $7,500 catch-up). Pro tip: If self-employed, explore SEP-IRAs for up to 25% of net earnings.
Why now? Contributions must be posted by December 31st. Review your year-to-date totals via your payroll portal or pay stubs. This simple step could save hundreds in taxes while building Southeastern Wisconsin’s retirement security.
2. Look for Charitable Contribution Opportunities
As the holiday season fills with the giving spirit, bunching charitable donations before December 31st can supercharge your 2025 tax savings. By combining this year’s and next year’s planned gifts into one large December contribution, itemizers can exceed the $15,750 standard deduction (single) or $31,500 (married) and unlock deductions up to 60% of AGI for cash gifts. This simple move often drops you into a lower federal and Wisconsin tax bracket while supporting your favorite charity. Give generously, deduct smartly, and end the year with both impact and savings.
3. Maximize your HSA Contributions
Boost your 2025 tax savings with one of the smartest moves available by maxing out your Health Savings Account (HSA) before December 31st. For 2025, you can contribute up to $4,300 (single) or $8,550 (family), plus an extra $1,000 catch-up if age 55+, and every dollar reduces your federal and Wisconsin taxable income. These Contributions are pre-tax (or deductible if post-tax), growth is tax-free, and qualified withdrawals stay tax-free forever. That’s a triple tax advantage that lowers your tax bill today while building a health safety net for tomorrow. Log into your payroll portal or bank today to see where you stand. The deadline for this is 12/31, not April 15th.
Key Takeaways
- Act fast: Deadlines are firm; procrastination costs money.
- Be Creative: Customize your financial moves for maximum impact.
- Seek pros: Year-end tweaks can vary. Schedule a chat with The Neal Group advisors.
End 2025 empowered, not overwhelmed. These steps aren’t just tasks, they’re investments in your financial well being. Ready to dive deeper? Reach out today and let’s get started.