October 30, 2025

Don’t miss critical year-end deadlines for IRAs, 401(k)s, and RMDs. Learn how business owners and high-net-worth families can stay ahead with smart timing and strategic planning.

As the end of the year approaches, it’s more than just holiday prep and financial wrap-ups—it’s your window of opportunity to make powerful, tax-efficient decisions that support your long-term goals. Whether you’re a business owner, a high-net-worth individual, or part of a legacy-minded family, understanding the key year-end and early-year retirement deadlines can help you avoid penalties, capture tax benefits, and align your estate and wealth transfer strategy.

1. Opening and Funding Retirement Accounts: Timing is Everything

Why It Matters: Opening and funding IRAs or business retirement accounts by the right deadline can make a big difference in deductions, tax deferral, and long-term savings growth.

What to Know:

• Traditional and Roth IRAs can be funded for the prior tax year up until April 15 of the following year—but only if the account is already open.
• For business owners using a Solo 401(k), the account must typically be established by December 31 to contribute for that year.
• Funding deadlines for certain accounts, like SIMPLE IRAs and employer plans, vary—so don’t wait until the last minute.

Pro Tip:

If you’ve recently sold a business or experienced a liquidity event, establishing a qualified plan now (even if funding later) can help you lock in tax-advantaged savings.

2. Contribution Deadlines: Don’t Leave Tax Savings on the Table

Why It Matters: Strategic contributions can reduce taxable income and maximize retirement savings, but only if timed correctly.

Key Insights:

• Traditional and Roth IRA contributions can be made until April 15 of the next year.
• SEP IRA contributions for business owners can be made up to the business’s tax filing deadline, including extensions.
• SIMPLE IRAs and other small-business retirement accounts often require earlier action—some as early as October 1 to be valid for the current tax year.

For Business Owners:

Make sure plan providers, payroll, and your CPA are all on the same page to avoid missed opportunities due to administrative delays.

3. Required Minimum Distributions (RMDs): Avoid the Penalties

Why It Matters: If you own retirement accounts and have reached the trigger age, you may be required to take annual distributions—or face steep penalties.

Understanding RMD Start Ages:

An individual’s RMD start age depends on their date of birth:

• Born on or before June 30, 1949 – RMDs started at age 70½
• Born between July 1, 1949, and December 31, 1950 – RMDs started at age 72
• Born between January 1, 1951, and December 31, 1959 – RMDs start at age 73
• Born on or after January 1, 1960 – RMDs start at age 75

RMD Rules to Remember:

• You must take your first RMD by April 1 of the year after you reach your required age, but delaying means you’ll take two distributions in one year.
• Subsequent RMDs are due by December 31 annually.
• If you inherited a retirement account, additional distribution rules may apply, including the 10-year rule for most non-spouse beneficiaries.

Strategy Tip:

Consider using a Qualified Charitable Distribution (QCD) to meet your RMD while reducing taxable income—especially effective if charitable giving is part of your legacy goals.

4. A Legacy Lens: Year-End Planning for the Next Generation

Why It Matters: Timing contributions and distributions isn’t just about tax savings—it’s about preserving and transferring wealth efficiently.

Family-Focused Actions:

• Help younger family members open and fund IRAs before year-end to kickstart tax-deferred growth.
• Coordinate RMDs across generations to manage tax brackets and gifting plans.
• Update beneficiary designations and ensure retirement account plans align with your broader estate strategy.

5. Year-End Checklist: Are You Prepared?

• Opened new IRAs or business plans before December 31?
• Funded intended contributions by relevant deadlines?
• Reviewed RMDs for yourself or aging parents?
• Evaluated tax implications of multiple RMDs?
• Scheduled QCDs or other giving strategies?
• Verified plan provider timelines and custodial transfers?
• Reviewed retirement accounts as part of your estate plan?

Ready to Take Action?

Let’s make your year-end strategy count. Whether you’re looking to maximize contributions, coordinate RMDs, or ensure your retirement and legacy plans are fully aligned, we’re here to help.

📆 Schedule a strategy session with Omni 360 Advisors
or
🔏 Book an estate plan review with Omni Legacy Law

This blog was developed with the assistance of AI-based tools for research, drafting and editing support (Chat GPT), and reviewed by OMNI 360 personnel for accuracy and relevance.