Practical Year-End Magic for Your Wealth

In the spirit of the season, we asked members of our client service team about some of the practical “magic” that often goes on behind the scenes at RWA, especially as year-end deadlines loom. We’ve also put together a checklist to help you get your portfolio and finances in order before 2026 arrives.

Take Stock of Your Finances and Goals 

As we rake up the leaves for winter, it’s a good time for some financial weatherproofing. Private Wealth Client Officer Kia Jeffery notes that “we’re listening throughout the year, setting tasks and reminders to revisit topics covered in calls and meetings before the end of the year.” Here are some high-level considerations: 

• Plan for big expenses. Buying a second home? Helping your children or grandchildren with finances? Planning an extended vacation? You should make a list.
• Maximize your retirement savings. Have you maxed out contributions to IRAs and 401(k)s? What about catch-up contributions?
• Contribute to a 529 plan. You can consider “superfunding” a 529 account for your loved ones by making five years of contributions at once (up to $95,000 per individual or $190,000 for a couple in 2025).
• Account for changes in your life. Retiring, selling a business, moving, getting married or divorced, having children? Tell us and we can help you plan.

Know Your Deadlines

Director of Private Wealth Client Service Megan Higgins estimates that her team processes roughly 3,500 required minimum distributions (RMDs) a year for clients, with this activity coming to a crescendo in the final months of the year. “Behind the scenes, we’re running many versions of RMD reports as part of our reconciliation process, comparing our internal dashboards against the various custodian reports and doing refreshes to catch any newly added accounts or discrepancies.” As you’ll see, this due diligence for RMDs and other deadlines can work like a charm to keep the IRS at bay.

• Take your RMDs on time. If you’re 73 or older, missing the Dec. 31 RMD deadline or not taking out the full required amount can be costly. The IRS charges a 25% excise tax on the amount you fail to withdraw (down from 50% in years past), which can be reduced to 10% if caught in time. But it’s better to just get it right the first time and avoid penalties altogether.
• Make charitable gifts. If you plan on deducting charitable gifts on your 2025 tax return, they must be made by Dec. 31. Gifts must go to qualified charitable organizations and be properly documented. Qualified charitable distributions (QCDs) from an IRA also share this deadline, and they can count against your RMD for a given year.
• Enroll in Medicare. The Medicare open enrollment window is Oct. 15 to Dec. 7 each year. During this period, you can switch between Original and Medicare Advantage plans, and you can also adjust coverage and join, drop or change Medicare Part D prescription drug plans. Make sure you enroll in Medicare during the seven-month window around your 65th birthday. Missing this deadline can permanently increase your monthly premiums.
• Top off workplace retirement contributions. Retirement savers must make all contributions to their employer’s plan for the year by Dec. 31. The limit for 2025 is $23,500 for those under 50. Those 50 and older can make up to $7,500 in catch-up contributions, and if you’re 60 to 63, that catch-up amount is $11,250 this year.

 Minimize Taxes

In a year when stocks have set records, many investors are carrying unrealized capital gains in their portfolios. That’s something we can help you manage. Kia states, “The RWA tax team are absolute wizards,” and Megan shares, “We recently helped facilitate a net unrealized appreciation transaction for a client that had highly appreciated company stock in their 401(k). We were able to pool together both internal resources at RWA and at Fidelity to help the client benefit from favorable tax treatment.”

• Assess your income. Low-income years present valuable tax-savings opportunities. If you changed jobs, lost an income source or retired, let us know.
• Consider a Roth conversion. A partial or full Roth conversion results in a tax bill but can create substantial savings when you are ready to draw down your retirement accounts. Talk to your team to see if a Roth conversion makes sense for your specific situation.
• Harvest gains. In a low-income year, harvesting capital gains can reduce future tax liability. We regularly monitor your portfolio to seek long-term wealth-building opportunities.

Revisit Your Estate Plans and Reduce Risk

We think of estate plans as living documents that require periodic tending. Your team can lend a hand with the following (and more):

• Ensure your plans are current. Your team is here to help you review your essential documents, philanthropic strategy, fiduciary administration, trust needs and business succession plans.
• Think about a gifting strategy. You can gift up to $19,000 annually (or $38,000 as a married couple) in 2025, helping others while reducing your taxable estate. We can help you with QCDs, donor-advised funds, charitable remainder trusts and other strategies to ensure your legacy carries on.
• Check beneficiary designations. Make sure your financial accounts and insurance policies reflect your wishes.
• Review insurance coverage. As your net worth increases, you want the right coverage against unexpected events.

Maximize Employer Benefits

While being mindful of contribution limits and saving at appropriate levels are fundamental, these are just two aspects of managing the benefits you’ve earned at work. Here are some others:

• Make the most of stock options. Year-end marks a good time to strategize with your advisor about equity compensation awards, concentration risk and options overlays.
• Review vesting schedules. Checking your schedule around year-end helps you to prepare for receiving shares or exercising options in 2026.
• Consolidate assets. Think about consolidating old 401(k)s for a simpler financial position and a unified strategy.

Protect Yourself From Fraud Online

This is a year-round concern, but worth the reminder. Megan notes that “we’ve seen a spike in the industry with client fraud issues which has presented its fair share of challenges over the years. With RWA’s security protection procedures, we’ve been able to help and protect clients from these bad actors by walking them through our security measures, providing education, adding two-factor authentication to their accounts, and restricting or registering accounts.”

Here are some of the steps you can take to protect your information:

• Set up two-factor authentication. It’s common for email providers, financial institutions, social media accounts and other services to offer two-factor or multifactor authentication. This adds protection for your accounts if someone tries to gain unauthorized access to a device, email or online account.
• Think before you click. Phishing scams are increasingly common and convincing. There may be telltale signs that an email or text message is fraudulent, but they can be hard to spot. Treat any link from an unsolicited source with suspicion.
• Don’t store sensitive information in your email box. Many people use their email inbox as a repository of useful information—unfortunately, that makes it a prime target for fraudsters. Save important documents in protected cloud or device locations and delete them from your inbox regularly.
• Be mindful of what you post on social media. Social engineering is also extremely prevalent—consider waiting until you’re back home before you share vacation photos or videos. Death and birth announcements also reveal sensitive information to the world and could be used for identity theft or to hit you with a convincing phishing attempt.
• Use public networks with caution. Guest Wi-Fi networks offer convenience, but they may be unsecured and put your information at risk. You may want to avoid using public networks to access financial accounts.

Some of the steps above you can handle on your own, but for others, you’ll want to summon your team for assistance. Fortunately, it won’t require a Ouija board or a witch’s brew—modern magic in the form of a call or email will suffice.