With critical December 31 deadlines approaching and significant tax law changes from the One Big Beautiful Bill Act (OBBB), now is the time to review your retirement plan.
From required minimum distributions to Roth conversions to tax withholding adjustments, many retirement planning actions must be completed by December 31 to count for the current tax year.
Missing these deadlines can result in penalties or lost opportunities that can’t be recovered.
Does This Apply to You?
This year-end planning becomes even more important if you’ve experienced certain life changes or reached key milestone ages.
Life Changes That Require Planning Updates
- Birth, death, marriage, divorce, remarriage, or illness in the family
- Started collecting Social Security benefits
- Job change, layoff, or retirement
- Received an inheritance or gift
- Created a trust or updated estate documents
- Moved or changed residence
- Completed a Roth conversion
Milestone Ages With Planning Implications
- Age 50 – Catch-up contributions available for retirement plans and IRAs
- Age 50 (or 25 years of service) – Plan exception to 10% early withdrawal penalty for public safety employees
- Age 55 – Plan exception to 10% early withdrawal penalty (if separated from service)
- Age 59½ – 10% Penalty-free withdrawals from retirement accounts
- Age 70½ – Qualified charitable distributions (QCDs) from IRAs available
- Age 73 – Required minimum distributions (RMDs) begin
- Age 75 – Special 403(b) exception may apply
If any of these apply to you, the checklist below becomes even more important to complete before December 31.
Your Year-End Retirement Planning Checklist
Not every item on this list will apply to your situation, but these are common year-end planning considerations you may want to review before Dec 31.
☐ Required minimum distributions (RMDs) from all applicable accounts if you’re age 73 or older (25% penalty applies if missed)
☐ Qualified charitable distributions (QCDs) from your IRA if you’re 70½ or older and charitably inclined
☐ Splitting inherited IRAs with multiple beneficiaries by December 31 of the year following the original owner’s death
☐ Roth conversions you’ve been considering before December 31
☐ Tax withholding and estimated payments review to avoid underpayment penalties
☐ Additional tax withholding from IRA distributions if you’re short on estimated payments (funds can be replaced within 60 days)
☐ Market volatility impact on your portfolio and whether rebalancing makes sense
☐ IRA rollover to company plan if still working and want to avoid RMDs on those assets next year
☐ Beneficiary designations review and update on all retirement accounts, especially if you experienced life changes
☐ Annual exclusion gifts ($18,000 per recipient in 2024, $19,000 in 2025) as part of your estate planning strategy
☐ Custodian information verification if you changed IRA or plan providers this year
Why These Deadlines Matter
These action items may seem straightforward, but each one connects to multiple aspects of your financial life.
An RMD affects your tax bracket and Medicare premiums. A Roth conversion requires multi-year tax planning. Beneficiary updates need to align with your estate plan and legacy goals.
Missing even one critical deadline can result in penalties, lost tax opportunities, or unintended consequences that ripple through your entire retirement strategy.
How Prosperity Capital Advisors Can Help
Everyone’s financial situation is unique, which is why professional guidance is essential when navigating year-end planning decisions.
At Prosperity Capital Advisors, we don’t just hand you a checklist. We help you understand which items truly matter for your situation and how each decision impacts your broader retirement strategy.
Our Bucket Plan Certified® advisors stay proactive throughout the year, keeping you ahead of critical deadlines while coordinating with your tax and legal professionals to ensure every planning opportunity works toward your long-term goals.
Ready to create a personalized year-end strategy?
Find an advisor and review which planning opportunities matter most for you before December 31.
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This material was developed and produced by Ed Slott and Company, LLC to provide information on a topic that may be of interest. Ed Slott and Company, LLC is not affiliated with The JL Smith Group or Prosperity Capital Advisors (Prosperity).
