By Jack Green, CFP®
Now that tax season is here, many people find themselves asking the same question: Is there anything I could have done differently? While some opportunities may still be available before you file, the most effective tax strategies happen throughout the year—not just during tax season. The following year-round tax planning steps highlight key areas to focus on now—and keep in mind as you position yourself for next year.
Step 1: Take Full Advantage of Retirement Accounts
Tax-advantaged retirement accounts like 401(k)s are excellent year-round tax planning tools. If you have a 401(k) through your employer, you have until December 31 of the tax year to max out contributions. These were the maximums for 2025:
- General maximum: $23,500
- Age 50 and older: Add $7,500 in catch-up contributions for a total of $31,000
- Ages 60 to 63: Add $11,250 in super catch-up contributions for a total of $34,750
These are the maximums for 2026:
- General maximum: $24,500
- Age 50 and older: Add $8,000 in catch-up contributions for a total of $32,500
- Ages 60 to 63: Add $11,250 in super catch-up contributions for a total of $35,750
If you’re a business owner with a solo 401(k), the contribution deadline could be extended until you file your taxes.
For a traditional IRA, you have until April 18, 2026, to make contributions for 2025. The limit is $7,000 if you’re under 50 and $8,000 if you’re 50 or older.
Step 2: Contribute to an HSA (if Eligible)
Health savings accounts (HSAs) are some of the best year-round tax planning tools out there. That’s because they offer a triple tax advantage:
- Your contributions are pre-tax, so they immediately lower taxable income.
- Money in the account grows tax-free.
- Withdrawals for qualifying medical expenses are tax-free.
Contributions can be made for 2025 up until filing. Below are the limits.
- Single: $4,300 ($5,300 if age 55+)
- Family: $8,550 ($9,550 if age 55+)
You must have a high-deductible health plan (HDHP) in order to create or contribute to an HSA.
Step 3: Harvest Investment Losses
Many people saw considerable investment returns in 2025. If you experienced losses during the year, or want to be more proactive going forward, tax-loss harvesting is a key part of year-round tax planning.
Tax-loss harvesting involves selling unsuccessful investments at a loss to offset capital gains dollar-for-dollar. If your total investment losses exceed your gains, you may apply up to $3,000 of those losses against your ordinary income. Any remaining losses carry forward to later tax years.
Step 4: Think About Itemizing or Bunching Deductions
A key part of effective year-round tax planning is deciding whether to claim the standard deduction or to itemize. For the 2025 tax year, standard deductions were as follows:
- Single/Married Filing Separately: $15,750
- Head of Household: $23,625
- Married Filing Jointly: $31,500
Always run the numbers to see whether your itemized deductions could exceed the standard deduction. These are some key deductible expenses to consider during year-round tax planning.
Mortgage Interest
For many taxpayers, home mortgage interest is fully deductible.
State and Local Taxes
Under the One Big Beautiful Bill Act (OBBBA), you may deduct up to $40,000 of state and local tax (SALT) from your tax bill for 2025. Prior to that, the SALT deduction cap was $10,000. However, this deduction phases out once you hit a modified adjusted gross income (MAGI) of $500,000.
Charitable Contributions
For many of our clients, charitable giving has long been an integral part of year-round tax planning. However, the OBBBA introduced a critical change: a charitable giving floor. Under the new law, only contributions that exceed 0.5% of your adjusted gross income (AGI) are counted.
Medical Expenses
As the cost of healthcare rises, more people are qualifying for medical expense deductions. If your medical expenses exceed 7.5% of your AGI, you may deduct the excess.
Looking for Help With Year-Round Tax Planning?
Tax season can be stressful, but it helps to have a knowledgeable guide. And remember that the best strategies don’t happen all at once; they’re implemented throughout the year.
The team at Thrive Wealth Management, LLC, is committed to crafting a personalized tax plan for each of our clients. This is just one part of our holistic iThrive Life Planning Process™, which is designed to help you align your finances with your vision for the future.
Think we might be the right firm for you? Contact us today with any questions you may have. To schedule a meeting, call (215) 376-5530 or email jack@thrivewealth.com.
Frequently Asked Questions
Why is year-round tax planning important?
Year-round tax planning involves reviewing your income, deductions, retirement contributions, and investment activity before filing your return. Taking time to plan ahead may help you identify opportunities to manage taxable income or take advantage of available deductions. Many individuals work with financial professionals, such as the team at Thrive Wealth Management, to review these strategies as part of a broader financial plan.
When should I start planning for tax season?
The best time to start planning for next year’s tax season is during the current tax season, while your financial details are fresh. Many strategies (e.g., retirement plan contributions or tax-loss harvesting) must be completed before the end of the calendar year. Others, like IRA contributions, may be available until the tax filing deadline. Reviewing your financial situation early can provide more flexibility when evaluating potential tax planning options.
What are common year-round tax planning strategies?
Common year-round tax planning strategies may include maximizing retirement account contributions, evaluating eligibility for health savings accounts (HSAs), reviewing investment gains and losses, and determining whether itemizing deductions makes sense. Because each taxpayer’s circumstances are unique, financial professionals at firms like Thrive Wealth Management often review these factors within the context of a client’s broader financial goals.
About Jack
Jack Green, CFP®, is a Relationship Manager at Thrive Wealth Management, LLC, a boutique financial planning firm in Blue Bell, Pennsylvania. In his role, Jack supports Thrive’s financial planners with in-depth client service, plan building, and ongoing relationship management. Clients appreciate Jack’s responsiveness, honesty, and independence; they know his guidance is rooted in Thrive’s best thinking, not products from banks or insurance companies. He finds it most rewarding when clients feel the stress lift off their shoulders after developing a clear plan, allowing them to focus on life outside of finances. “Money is emotional,” Jack says. “My role is to be a steady buffer during market declines so clients don’t make decisions they’ll regret later.”
Jack earned his CFP® designation in 2022 and holds a Bachelor of Business Administration in Financial Planning from Temple University’s Fox School of Business. While at Temple, he was an active member of the Financial Planning Association, the Temple University Investment Association, and the Men’s Lacrosse team. Jack currently resides in Philadelphia, PA, and outside of work, he enjoys running, working out, golfing, cooking (especially grilling), traveling, and attending concerts. Most of all, he values spending time with family and friends. To learn more about Jack, connect with him on LinkedIn.
Disclosure:
This material is provided for informational and educational purposes only, should not be viewed as an exhaustive discussion of the topics presented, and should not be construed as individualized advice for any reader’s personal circumstances. For guidance on how these matters may impact your financial plan or investment portfolio, please contact your Thrive Wealth Management, LLC representative. While the information presented is believed to be factual and up to date, Thrive Wealth Management, LLC does not guarantee its accuracy and, due to various factors, including but not limited to changing laws and regulations, this information is subject to change. All expressions of opinion reflect the judgment of the authors as of the date of publication. Thrive Wealth Management, LLC is not a law firm or an accounting firm, and no content contained herein should be construed as legal or accounting advice. Please consult with the qualified professional(s) of your choosing for legal and accounting advice.
Please visit https://thrivewealth.com/disclosure for additional information regarding the professional designations and credentials discussed. Professional designations and credentials do not guarantee success or any particular investment or financial outcome.
Past performance does not guarantee future results. All investing comes with risk, including risk of loss.
