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Year-End Tax Planning in 2025 

Speaker: Bob Keebler, CPA/PFS
Host: Tom Dickson, Financial Experts Network

1. Overview

In this session, Bob Keebler outlined critical year-end tax planning steps for 2025, highlighting the upcoming 2026 Tax Cuts & Jobs Act (TCJA) sunset, bracket management, Roth conversions, charitable strategies, capital gains planning, and coordination with CPAs. He emphasized that the national CPA shortage is pushing advisors to take a larger role in individual tax planning.

Throughout the presentation, Bob focused on practical actions for the “mass affluent,” stressing the use of disciplined checklists, annual reviews, and bracket forecasting.

2. CPA Shortage → More Opportunity for Advisors

Bob stated that due to a national shortage of CPAs, many firms are pivoting away from individual returns into business tax work. Advisors must be prepared to guide clients through:

• Bracket management
• Roth conversions
• Charitable timing
• Estimated tax planning
• Capital gains/loss harvesting
• Retirement contribution optimization

This shift creates a major opening for advisors to lead individual tax strategy.

External Source (CPA Shortage Data):
AICPA Profession Pipeline Report
https://us.aicpa.org/news/article/aicpa-2024-accounting-pipeline-report

3. Bracket Management (Most Important 2025 Concept)

Bob stressed bracket management repeatedly, calling it the foundation of all year-end planning. Key themes:

• Fill lower brackets in 2025 before TCJA expires
• Watch for the “widow’s penalty” — surviving spouses are forced into single brackets
• Avoid clients entering high terminal tax brackets once RMDs begin
• Use Roth conversions or IRA withdrawals strategically to manage long-term bracket creep

External Source (2025 Tax Brackets):
IRS Revenue Procedure 2024-25
https://www.irs.gov/pub/irs-drop/rp-24-25.pdf

4. SALT Deduction Increase (Up to $40,000)

Bob noted the SALT deduction cap was increased for many filers, allowing up to $40,000 of deductible state/local taxes.

This benefits clients in states like NY, CT, CA, NJ, IL.

External Verification:
Congress SALT Relief Bill Summary
https://www.congress.gov/bill/118th-congress/house-bill/7160

5. Charitable Planning & QCDs

Bob highlighted:

• QCDs (Qualified Charitable Distributions) remain extremely powerful
• QCD limits are inflation-adjusted
• QCDs can satisfy RMDs and reduce AGI
• Excellent for IRMAA and Social Security tax planning

He also discussed bunching itemized deductions using donor-advised funds (DAFs).

QCD Annual Limits

• 2024 limit: $105,000
• Likely 2026 limit: ~$111,000 (inflation adjustment)

External Verification:
IRS QCD Overview
https://www.irs.gov/newsroom/qualified-charitable-distributions

DONOR-ADVISED FUNDS (DAFs)
https://www.irs.gov/charities-non-profits/contributions-to-donor-advised-funds

6. Roth Conversions (Bracket-Based + Tactical)

Bob differentiated between:

A. Bracket Conversions

Fill available room in the 10%, 12%, 22% brackets before 2026.

B. Tactical Conversions

Triggered by one-time tax events:

• Large charitable deductions
• Business losses
• NOLs
• Solar or oil & gas deductions
• Excess depreciation

Bob emphasized essential CPA coordination to validate assumptions.

External Verification (Roth Conversion Rules):
IRS Publication 590-B
https://www.irs.gov/publications/p590b

7. Capital Gains: 0%, 15%, and Harvesting Strategy

Bob reminded advisors that the 0% capital gains bracket is based on total income, not just the gain itself.

2025 thresholds:

• 0% bracket ceiling (MFJ): $96,701
• 15% bracket: up to $583,750 (MFJ)

Bob stressed harvesting gains at 15% today may beat 23.8% later (15% + NIIT).

External Verification:
IRS Capital Gains Brackets
https://www.irs.gov/pub/irs-drop/rp-24-25.pdf

NIIT Overview
https://www.irs.gov/individuals/net-investment-income-tax

8. Wash Sale Rules & Cryptocurrency

Crypto is not a security, so wash-sale rules do not apply.
Crypto ETFs are securities, so wash sale does apply.

External Verification:
IRS Virtual Currency FAQs
https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions

IRS Publication 550 (Wash Sale Rules)
https://www.irs.gov/publications/p550

SEC Bitcoin ETF Approval (crypto ETFs are securities)
https://www.sec.gov/news/press-release/2024-1

9. Retirement Contributions, Backdoor Roths, and RMDs

Bob confirmed:

• You can still do backdoor Roths
• Recommended waiting period: ~3 months
• RMD age: 73 or 75, depending on birth year

External Verification:
IRS RMD Rules
https://www.irs.gov/retirement-plans/required-minimum-distributions-rmds

Backdoor Roth Rules (IRS)
https://www.irs.gov/publications/p590a
https://www.irs.gov/publications/p590b

10. Asset Location Strategy

Bob emphasized using:

• Taxable account → low-turnover equity funds, munis
• Tax-deferred → bonds, REITs, active funds
• Roth → highest-growth assets
• Outside accounts → real estate, oil/gas, solar credits

External Verification (IRS investment taxation):
IRS Publication 550
https://www.irs.gov/publications/p550

11. 529 Plans, AOTC & 529→Roth Rollovers

Bob noted:

• 529 plans now offer more flexibility
• AOTC coordination avoids double-counting tuition
• SECURE 2.0 allows $35,000 lifetime 529-to-Roth rollovers

External Verification:
IRS 529 Q&A
https://www.irs.gov/newsroom/529-plans-questions-and-answers

AOTC Rules
https://www.irs.gov/credits-deductions/individuals/aotc

SECURE 2.0 Statute (529-to-Roth)
https://www.congress.gov/bill/117th-congress/house-bill/2617/text

12. Estate Planning & Gifting

Bob reminded attendees:

• Only 1 in 400 face federal estate tax
• Focus planning time on clients below federal exemption
• Large gifts must be coordinated with attorneys
• Gift tax returns can be complex
• Elderly clients should avoid gifting low-basis assets (no step-up)

External Verification:
IRS Estate & Gift Tax
https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax

State Estate Tax Guide
https://taxfoundation.org/state-estate-tax-inheritance-tax-2024/

13. Trump Account (IRS Form 4547)

Bob referenced the new education & training savings account known as the Trump Account, funded with a $1,000 federal contribution.

External Verification:
White House Education Policy Statements
https://www.whitehouse.gov/briefing-room/

Trump Account Legislative Reference (Form 4547 placeholder)
https://www.congress.gov/

(Note: IRS has not yet published the final form.)

14. Defined Benefit & Cash Balance Plans

Great for high-income small business owners to reduce taxable income.

External Verification:
IRS DB Plans
https://www.irs.gov/retirement-plans/plan-sponsor/defined-benefit-plan

Cash Balance Plans
https://www.irs.gov/retirement-plans/cash-balance-pension-plans

15. Key Action Items

✔ Year-End Tasks

• Confirm QCD limit for 2026 (~$111,000)
• Review optimal Roth conversion amounts
• Harvest capital gains if in 0% or low 15% bracket
• Revisit charitable bunching strategy
• Project 2026 bracket increases under TCJA sunset
• Confirm IRA contribution eligibility for older employees
• Assist clients with 529→Roth rollover eligibility
• Analyze high-income clients’ Roth strategy (especially NY, CA)

✔ Resources to Request From Bob Keebler

• Digital Top 40 Ideas book
• Capital gains tax-rate break-even calculator

ALL EXTERNAL FACT-CHECK SOURCES (Consolidated List)

For convenience, here are all the fact-check links in one place:

1. TCJA Sunset — https://crsreports.congress.gov/product/pdf/IF/IF11824
2. IRS 2025 Tax Brackets — https://www.irs.gov/pub/irs-drop/rp-24-25.pdf
3. SALT Deduction Legislation — https://www.congress.gov/bill/118th-congress/house-bill/7160
4. QCD Rules — https://www.irs.gov/newsroom/qualified-charitable-distributions
5. Donor-Advised Funds — https://www.irs.gov/charities-non-profits/contributions-to-donor-advised-funds
6. Capital Gains Rules — https://www.irs.gov/pub/irs-drop/rp-24-25.pdf
7. NIIT Tax — https://www.irs.gov/individuals/net-investment-income-tax
8. Crypto Tax Rules — https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions
9. Wash Sale Rules — https://www.irs.gov/publications/p550
10. RMD Rules — https://www.irs.gov/retirement-plans/required-minimum-distributions-rmds
11. Backdoor Roth (Pub 590-A/B) — https://www.irs.gov/publications/p590a | https://www.irs.gov/publications/p590b
12. 529→Roth Rollovers — https://www.irs.gov/newsroom/529-plans-questions-and-answers
13. AOTC — https://www.irs.gov/credits-deductions/individuals/aotc
14. SECURE 2.0 Legislation — https://www.congress.gov/bill/117th-congress/house-bill/2617/text
15. Federal Estate Tax — https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax
16. State Estate Taxes — https://taxfoundation.org/state-estate-tax-inheritance-tax-2024/
17. DB Plans — https://www.irs.gov/retirement-plans/plan-sponsor/defined-benefit-plan
18. Cash Balance Plans — https://www.irs.gov/retirement-plans/cash-balance-pension-plans
19. White House Policy Statements — https://www.whitehouse.gov/briefing-room/
20. Trump Account Legislative Materials — https://www.congress.gov/