More Year-End Tax Topics to Consider Before the Calendar Turns
Year-end is a natural time to take a closer look at your financial picture and make sure you’re prepared for both tax filing season and the year ahead. In addition to charitable giving, retirement planning, and business expenses, there are a few other important topics worth considering as December 31 approaches — especially relating to healthcare accounts and upcoming changes in tax law that may affect planning over the next couple of years.
HEALTHCARE ACCOUNTS: DON’T LEAVE MONEY ON THE TABLE
If you participate in an employer-sponsored healthcare account, year-end is the perfect time to review your balances and deadlines.
Flexible Spending Accounts (FSAs)
Many FSAs follow a “use it or lose it” structure. That means if you don’t use your remaining balance by your plan’s deadline, you may lose part — or even all — of the unused funds.
However, employers have options, and your plan may allow:
• A grace period into the early part of next year, or
• A limited carryover of unused funds
Since each plan is different, it’s important to confirm your specific rules. If you still have money available, consider scheduling medical or dental appointments, updating prescriptions, or purchasing qualifying medical supplies before your deadline.
Health Savings Accounts (HSAs)
HSAs work differently and are often extremely valuable from a tax standpoint. Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free.
While HSA contributions don’t necessarily need to be made by December 31, it’s still a good time to:
• Review contributions so far
• Evaluate tax strategy
• Make sure funding aligns with next year’s needs
LOOKING AHEAD: TAX RULES MAY CHANGE AFTER 2025
Under current law, many provisions from the Tax Cuts and Jobs Act are scheduled to expire after 2025. Unless Congress acts, several rules could change beginning in 2026.
Examples include:
• Standard deduction scheduled to decrease
• Income tax brackets may shift
• Various deductions and credits may revert to prior rules
This isn’t a reason to panic, but it’s an excellent reason to stay informed and consider proactive planning. Awareness leads to better long-term financial decision-making.
PLANNING BRINGS CLARITY — AND PEACE OF MIND
Year-end planning isn’t just about minimizing taxes today. It’s about creating clarity, avoiding surprises, and strengthening your financial future.
If you’d like to review your healthcare accounts, consider long-range planning, or understand how future tax changes might affect you, I’d be happy to help.
The article is meant for informational purposes only. Please contact me directly to discuss how this applies to your individual tax situation.