Taxes
Zoe Team
8 min read
Year-end is the optimal time to assess your financial progress and make adjustments to lower your tax liability before the new year.
Reviewing investment performance, rebalancing portfolios, and finalizing charitable contributions are key year-end strategies.
Strategic planning in December can provide a stronger financial foundation for the upcoming year.
It marks a deadline for tax-deductible actions, contribution limits, and portfolio rebalancing that can improve your financial situation for the new year.
Review your investment portfolio, maximize retirement account contributions, and consider tax-loss harvesting to optimize your tax bill.
Proactive planning allows you to realize deductions or defer income strategically, potentially lowering the total taxes you owe for the year.
Before starting the countdown that turns 2023 into 2024, we reflect on what this year has been. The year-end provides a unique opportunity to evaluate what has happened over the past 12 months. It’s also a way to understand how these events may have impacted your finances, especially your portfolio. Make sure you review your taxable income, available contributions, and gifting opportunities.
Before starting the countdown that turns 2023 into 2024, we reflect on what this year has been. We look back on the ups and downs and, most importantly, start setting intentions for the upcoming ap. As New Year’s day approaches, you think about where you want to travel, what you want to leave behind, and of course, how you will avoid the financial stress of it all. The year-end provides a unique opportunity to evaluate what has happened over the past 12 months. It’s also a way to understand how these events may have impacted your finances, especially your portfolio.
Let the Count Down Begin
With less than a week remaining of this eventful year, think about what final opportunities you can take advantage of before December 31st. What will make the most significant impact on your wealth goals? Start by focusing on these three core areas of your financial plan: tax, retirement, and estate.
As we all undoubtedly know, taxes are inevitable. Every year we have to report amounts owed to the IRS. However, with proper planning, there are ways to reduce the amount we ultimately have to hand over.
Tax-loss harvesting is selling an investment with a lower fair market value today than when you purchased it. Then, you can use the proceeds to reinvest into a similar fund quickly. Tax-loss harvesting provides you with the same diversified portfolio while offering the added benefit of a realized loss. More specifically, the added benefit offsets a realized gain you incurred when you sold an investment that had been appreciated. If you do not have any improvements to compensate in the current year, you can use up to $3,000 of your loss to offset ordinary income. Any realized losses left over from offsetting gains or income, can be carried forward indefinitely until they are fully utilized.
One of the added benefits of this strategy is that it isn’t just a year-end tactic but rather a strategy that we should utilize year-round.
2023 has provided abundant opportunities for year-round and year-end harvesting. When it comes to tax planning, the time to harvest losses in your portfolio is when the market is most volatile.
While you could donate cash directly to a charity, there are other ways to contribute that will provide additional tax benefits.
A Donor Advised Fund allows donors to make a charitable contribution directly to the DAF account, receive an immediate tax deduction, and then gift to various charities of their choice. A DAF can accept cash or securities, with the most advantaged opportunity being highly appreciated securities. For example, if you have an investment with a high embedded gain, you can donate to that position. You would get a tax deduction for the total market value of the securities gifted.
It’s important to note that utilizing a DAF is only beneficial if you itemize your tax return during the year you donate. However, for taxpayers that have opted out of itemizing in favor of the larger standard deduction, you can lump your DAF contributions into a single year in which you 1) itemize, 2) receive the full tax deduction up front, and 3) then gift the funds over many years.
Although we all strive to build up a large nest egg for retirement, the larger the tax-deferred retirement account, the larger the Required Minimum Distributions (RMD) upon reaching age 72. Since RMDs are taxable as ordinary income, an extensive distribution can easily bump you into a higher tax bracket, amplifying your ultimate tax bill.
A Qualified Charitable Distribution is a direct transfer from your IRA to a qualified charity that satisfies up to $100,000 of your annual Required Minimum Distribution. Unlike a standard RMD, the amount used to fund the QCD is excluded from your taxable income. Reducing your taxable income not only reduces your tax burden for the year, but may also reduce the impact that higher income levels have on certain tax credits and/or deductions. For example, reducing your taxable income can help reduce your Medicare premiums and reduce the taxable portion of your Social Security.
Unlike a gift made to a Donor Advised Fund, you don’t need to itemize on your tax return to take advantage of a QCD. This allows you to take the higher standard deduction while also meeting your annual charitable goals. To utilize this strategy, you must be 70 ½ or older, the QCD may not exceed the Required Minimum Distribution amount for the year, and funds must be distributed directly to a charity.
Approaching year-end also presents an opportunity to review what you have contributed to your retirement accounts. A lot can change in your life in a given year, impacting how much you can save for the future.
If you had hoped to max out your allowable contribution, this is the time to check if you’re on track. Conversely, if you are projected to be under the maximum, now is the time to bump up your contribution to making a difference.
If you or your spouse have access to an employer-sponsored retirement plan but would also like to contribute to a traditional or Roth IRA, you must check your income-based eligibility. For those of us with variable compensation, it can be challenging to know at the start of the year which type of IRA you are eligible to contribute to. However, year-end is a great time to evaluate your income and make any available contributions.
While you technically have until April 15th to make IRA contributions, conversions from a traditional IRA to a Roth IRA must be done by December 31st. Conversions could be particularly beneficial if your income were lower than usual for the year, thus allowing you to convert a portion of your IRA at a lower tax rate. Another valuable time to convert is when the market is down, allowing you to convert funds at a lower fair market value. Once your account is converted to a Roth IRA, the funds grow tax-free, and you never have to worry about taking Required Minimum Distributions.
If you are 72 or older, confirm that you have taken your Required Minimum Distribution for the year before converting any funds to a Roth IRA.
The IRS allows each person to gift up to $17,000 (2023) per year per recipient before qualifying it as a “taxable gift.” If you gift over $17,000, then you must file a gift tax return, and the excess gift will count towards your lifetime exemption. By gifting the maximum allowable annual gift per year, per person, you can decrease your taxable estate without impacting your available lifetime gift exemption. If married, you may jointly gift $34,000 (2023) per year per recipient.
529 plans offer an enhanced gifting opportunity for those looking to assist with education funding. You may gift up to five times the annual limit in a lump sum per 529 plan beneficiary. However, you may only gift this lump sum once every five years.
To sum up, there are many great planning opportunities to consider at year-end. Of course, these strategies are not reserved for just year-end, but let’s not miss our final chance to make an impact. Carefully evaluating your tax, retirement, and estate planning before the start of the next year allows you to have financial peace of mind.
Before starting the countdown that turns 2023 into 2024, we reflect on what this year has been. The year-end provides a unique opportunity to evaluate what has happened over the past 12 months. It’s also a way to understand how these events may have impacted your finances, especially your portfolio. Make sure you review your taxable income, available contributions, and gifting opportunities.
Before starting the countdown that turns 2023 into 2024, we reflect on what this year has been. We look back on the ups and downs and, most importantly, start setting intentions for the upcoming ap. As New Year’s day approaches, you think about where you want to travel, what you want to leave behind, and of course, how you will avoid the financial stress of it all. The year-end provides a unique opportunity to evaluate what has happened over the past 12 months. It’s also a way to understand how these events may have impacted your finances, especially your portfolio.
Let the Count Down Begin
With less than a week remaining of this eventful year, think about what final opportunities you can take advantage of before December 31st. What will make the most significant impact on your wealth goals? Start by focusing on these three core areas of your financial plan: tax, retirement, and estate.
As we all undoubtedly know, taxes are inevitable. Every year we have to report amounts owed to the IRS. However, with proper planning, there are ways to reduce the amount we ultimately have to hand over.
Tax-loss harvesting is selling an investment with a lower fair market value today than when you purchased it. Then, you can use the proceeds to reinvest into a similar fund quickly. Tax-loss harvesting provides you with the same diversified portfolio while offering the added benefit of a realized loss. More specifically, the added benefit offsets a realized gain you incurred when you sold an investment that had been appreciated. If you do not have any improvements to compensate in the current year, you can use up to $3,000 of your loss to offset ordinary income. Any realized losses left over from offsetting gains or income, can be carried forward indefinitely until they are fully utilized.
One of the added benefits of this strategy is that it isn’t just a year-end tactic but rather a strategy that we should utilize year-round.
2023 has provided abundant opportunities for year-round and year-end harvesting. When it comes to tax planning, the time to harvest losses in your portfolio is when the market is most volatile.
While you could donate cash directly to a charity, there are other ways to contribute that will provide additional tax benefits.
A Donor Advised Fund allows donors to make a charitable contribution directly to the DAF account, receive an immediate tax deduction, and then gift to various charities of their choice. A DAF can accept cash or securities, with the most advantaged opportunity being highly appreciated securities. For example, if you have an investment with a high embedded gain, you can donate to that position. You would get a tax deduction for the total market value of the securities gifted.
It’s important to note that utilizing a DAF is only beneficial if you itemize your tax return during the year you donate. However, for taxpayers that have opted out of itemizing in favor of the larger standard deduction, you can lump your DAF contributions into a single year in which you 1) itemize, 2) receive the full tax deduction up front, and 3) then gift the funds over many years.
Although we all strive to build up a large nest egg for retirement, the larger the tax-deferred retirement account, the larger the Required Minimum Distributions (RMD) upon reaching age 72. Since RMDs are taxable as ordinary income, an extensive distribution can easily bump you into a higher tax bracket, amplifying your ultimate tax bill.
A Qualified Charitable Distribution is a direct transfer from your IRA to a qualified charity that satisfies up to $100,000 of your annual Required Minimum Distribution. Unlike a standard RMD, the amount used to fund the QCD is excluded from your taxable income. Reducing your taxable income not only reduces your tax burden for the year, but may also reduce the impact that higher income levels have on certain tax credits and/or deductions. For example, reducing your taxable income can help reduce your Medicare premiums and reduce the taxable portion of your Social Security.
Unlike a gift made to a Donor Advised Fund, you don’t need to itemize on your tax return to take advantage of a QCD. This allows you to take the higher standard deduction while also meeting your annual charitable goals. To utilize this strategy, you must be 70 ½ or older, the QCD may not exceed the Required Minimum Distribution amount for the year, and funds must be distributed directly to a charity.
Approaching year-end also presents an opportunity to review what you have contributed to your retirement accounts. A lot can change in your life in a given year, impacting how much you can save for the future.
If you had hoped to max out your allowable contribution, this is the time to check if you’re on track. Conversely, if you are projected to be under the maximum, now is the time to bump up your contribution to making a difference.
If you or your spouse have access to an employer-sponsored retirement plan but would also like to contribute to a traditional or Roth IRA, you must check your income-based eligibility. For those of us with variable compensation, it can be challenging to know at the start of the year which type of IRA you are eligible to contribute to. However, year-end is a great time to evaluate your income and make any available contributions.
While you technically have until April 15th to make IRA contributions, conversions from a traditional IRA to a Roth IRA must be done by December 31st. Conversions could be particularly beneficial if your income were lower than usual for the year, thus allowing you to convert a portion of your IRA at a lower tax rate. Another valuable time to convert is when the market is down, allowing you to convert funds at a lower fair market value. Once your account is converted to a Roth IRA, the funds grow tax-free, and you never have to worry about taking Required Minimum Distributions.
If you are 72 or older, confirm that you have taken your Required Minimum Distribution for the year before converting any funds to a Roth IRA.
The IRS allows each person to gift up to $17,000 (2023) per year per recipient before qualifying it as a “taxable gift.” If you gift over $17,000, then you must file a gift tax return, and the excess gift will count towards your lifetime exemption. By gifting the maximum allowable annual gift per year, per person, you can decrease your taxable estate without impacting your available lifetime gift exemption. If married, you may jointly gift $34,000 (2023) per year per recipient.
529 plans offer an enhanced gifting opportunity for those looking to assist with education funding. You may gift up to five times the annual limit in a lump sum per 529 plan beneficiary. However, you may only gift this lump sum once every five years.
To sum up, there are many great planning opportunities to consider at year-end. Of course, these strategies are not reserved for just year-end, but let’s not miss our final chance to make an impact. Carefully evaluating your tax, retirement, and estate planning before the start of the next year allows you to have financial peace of mind.
Disclosures: Zoe Financial, Inc. ("Zoe Financial") is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Zoe Financial provides investment advisory services and access to independent registered investment advisers through its platform. The information provided by Zoe Financial is for educational and informational purposes only and should not be construed as personalized investment advice or as an offer to buy or sell any security. All investments involve risk, including possible loss of principal. Past performance is not indicative of future results. Clients should consult with their own financial, tax, or legal professionals before making any investment decisions. The material presented by Zoe Financial is for informational purposes only and is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product. Material presented has been gathered from sources believed to be reliable, however Adviser cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Past performance is no guarantee of future results. Zoe Financial does not provide legal or tax advice, and nothing contained in these materials should be taken as legal or tax advice. SEC Registration does not constitute an endorsement of Zoe Financial by the SEC nor does it indicate that Zoe Financial has attained a particular level of skill or ability. The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance. Lower expenses do not guarantee better investment performance. Certain information contained herein may constitute forward-looking statements. Due to various risks and uncertainties, actual events, results or the performance of a fund may differ materially from those reflected or contemplated in such forward-looking statements.
Disclosure: This page is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors. The observations of industry trends should not be read as recommendations for stocks or sectors.
Investment advisory services are provided by Zoe Financial, Inc. (Zoe Financial), an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website.
The information in the visuals above is for illustrative purposes only and does not represent an actual user's account, balance, or return. Zoe Financial does not provide tax or legal advice.
Explore the Zoe Wealth Platform with AI
Some of this content may have been generated with the assistance of AI. Please review and sense-check all outputs, as AI tools can occasionally produce incomplete or inaccurate information.
In certain situations, you may be required to disclose that the content was “generated by AI.” Please confirm any specific disclosure or labelling requirements with Compliance.
(646) 680-9244
support@zoefin.com
666 Third Ave, 6th Floor
New York, NY, 10017
Copyright © 2026 Zoe Financial, Inc. | All rights reserved
Find an Advisor
Retirement Planning
Disclosure: This page is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors. The observations of industry trends should not be read as recommendations for stocks or sectors.
Investment advisory services are provided by Zoe Financial, Inc. (Zoe Financial), an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website.
The information in the visuals above is for illustrative purposes only and does not represent an actual user's account, balance, or return. Zoe Financial does not provide tax or legal advice.
Explore the Zoe Wealth Platform with AI
Some of this content may have been generated with the assistance of AI. Please review and sense-check all outputs, as AI tools can occasionally produce incomplete or inaccurate information.
In certain situations, you may be required to disclose that the content was “generated by AI.” Please confirm any specific disclosure or labelling requirements with Compliance.
(646) 680-9244
support@zoefin.com
666 Third Ave, 6th Floor
New York, NY, 10017
Copyright © 2026 Zoe Financial, Inc. | All rights reserved
Find an Advisor
Retirement Planning
Disclosure: This page is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors. The observations of industry trends should not be read as recommendations for stocks or sectors.
Investment advisory services are provided by Zoe Financial, Inc. (Zoe Financial), an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website.
The information in the visuals above is for illustrative purposes only and does not represent an actual user's account, balance, or return. Zoe Financial does not provide tax or legal advice.
Explore the Zoe Wealth Platform with AI
Some of this content may have been generated with the assistance of AI. Please review and sense-check all outputs, as AI tools can occasionally produce incomplete or inaccurate information.
In certain situations, you may be required to disclose that the content was “generated by AI.” Please confirm any specific disclosure or labelling requirements with Compliance.
(646) 680-9244
support@zoefin.com
666 Third Ave, 6th Floor
New York, NY, 10017
Copyright © 2025 Zoe Financial, Inc. | All rights reserved
