​As we approach the 2024 tax filing season, it’s crucial for high-net-worth retirees to stay informed about recent policy changes and their potential impact on tax planning strategies. 

Last-minute tax planning can reduce taxable income, maximize deductions, and help ensure you’re making the most of available tax benefits.

This guide explores effective last-minute tax planning strategies for 2024 so that you remain compliant while optimizing your tax situation.

Why Last-Minute Tax Planning Matters

We don’t know what’s going to happen with taxes, but keeping an eye on these issues is imperative so you can make the right moves at the right time. The current administration has proposed tax policy adjustments, including potential higher income tax rates and expiring deductions in 2025, that could impact HNWIs significantly.

Some key considerations for high-net-worth retirees:
✅ Tax brackets could shift in 2025 if expiring provisions from the 2017 Tax Cuts and Jobs Act aren’t renewed.
✅ Capital gains tax increases have been proposed, making tax-efficient investment strategies more critical than ever.
✅ Estate and gift tax exemption changes could affect long-term wealth transfer plans.

Staying ahead of these potential changes is essential for minimizing tax burdens and optimizing your financial future.

Key Last-Minute Tax Strategies for 2024

1. Maximize Retirement Contributions

Contributing to retirement accounts before filing your tax return is one of the most effective ways to help reduce taxable income. Some retirement contribution deadlines extend to April 15, 2025:

• IRA Contributions – The deadline for Traditional and Roth IRA contributions for the 2024 tax year is April 15, 2025. If eligible, contributions may reduce taxable income or grow tax-free in the case of Roth IRAs.
• Self-Employed Retirement Plans – If you’re self-employed, contributions to SEP IRAs and Solo 401(k)s can be made until the tax-filing deadline, with an extension available if you file for one.

2. Harvest Capital Losses

If you realized losses in 2024, tax-loss harvesting allows you to offset capital gains on your tax return:

• Offsetting Gains – Losses can be used to offset capital gains dollar-for-dollar.
• $3,000 Deduction – If your losses exceed gains, up to $3,000 can be deducted from your ordinary income.
• Carrying Over Losses – Unused losses can be carried forward to offset future taxable gains.

3. Consider Charitable Giving

Donations made by December 31, 2024, may be deductible on your 2024 tax return:

• Donor-Advised Funds (DAFs) – Contributions to a DAF allow for an immediate deduction, even if distributions are made to charities later.
• Qualified Charitable Distributions (QCDs) – If you’re 70½ or older, you can donate up to $105,000 from your IRA directly to charity, which counts toward Required Minimum Distributions (RMDs) without increasing taxable income.
• Appreciated Stock Donations – Donating appreciated securities instead of cash may help you avoid capital gains taxes while receiving a full deduction.

4. Review Required Minimum Distributions (RMDs)

If you were 73 or older in 2024, RMDs were required from traditional IRAs and 401(k)s. However, with ongoing tax policy discussions, some financial professionals recommend evaluating Roth conversions while tax rates remain historically low.

Why consider a Roth conversion in 2025?
📉 Tax rates may increase in 2026—converting now could lock in lower rates.
💡 Roth IRAs are not subject to RMDs—offering greater flexibility in retirement.
📊 Future-proofing against tax law uncertainty—keeping more control over your withdrawals.

While Roth conversions require upfront taxes, they can significantly reduce long-term tax liabilities.

5. Defer Income and Accelerate Deductions for 2025

While it’s too late to defer 2024 income, you can begin planning for 2025 now:

• Deferring Bonuses or Stock Sales – If you have control over income timing, consider shifting taxable events into 2025 to lower your 2024 liability.
• Accelerating Deductions – Making tax-deductible expenses early in 2025 (such as property taxes or business expenses) can help offset taxable income for the new year.

6. Utilize the Gift Tax Exclusion

If you made large financial gifts in 2024, you may need to file a gift tax return (Form 709) when filing your federal return:

• The IRS allows individuals to gift up to $18,000 per recipient in 2024 without triggering gift taxes.
• Gifts above this amount may count toward your lifetime gift and estate tax exemption.

7. Consider State-Specific Tax Strategies

State tax laws vary widely. If your state offers deductions for contributions to 529 college savings plans, energy-efficient home upgrades, or other incentives, you may still qualify for deductions when filing your 2024 return.

8. Review Tax-Efficient Withdrawal Strategies

For retirees managing distributions, ensuring a tax-efficient withdrawal strategy can help optimize your financial situation. Many financial professionals recommend:

1. Withdrawing from taxable accounts first helps minimize capital gains taxes.
2. Then, drawing from tax-deferred accounts like IRAs and 401(k)s.
3. Finally, tapping into tax-free accounts (Roth IRAs) as needed.

If your taxable income was lower in 2024, consider whether a Roth conversion for 2025 makes sense.

Important Deadlines to Keep in Mind

• April 15, 2025 – The filing deadline for 2024 tax returns and last chance to contribute to IRAs.
• October 15, 2025 – Extended tax return filing deadline (if requested by April 15, 2025).
• December 31, 2025 – Deadline for 2025 tax planning strategies, including RMDs and charitable contributions.

How CKS Summit Group Can Help

Navigating last-minute tax strategies can be complex, especially for high-net-worth individuals. At CKS Summit Group, we help affluent retirees find financial plans that align with their long-term wealth goals. 

By focusing on forward-thinking retirement planning, risk management, and income strategies, CKS Summit Group helps ensure that your financial future remains secure. Contact us today to schedule a complimentary consultation.

Final Thoughts: Take Action Before Filing

Although 2024 is over, last-minute tax strategies can make a difference before filing. Reviewing contributions, deductions, and tax-loss harvesting can help reduce your overall tax liability. Looking ahead to the 2025 tax year can help ensure a proactive approach to managing your wealth efficiently.

It’s always advisable to consult with a financial professional to help ensure compliance with IRS regulations and optimize your financial strategy.

As we prepare for the 2025 tax year, potential changes on the horizon make it more important than ever to stay proactive. Estate and gift tax exemptions may decrease, tax rates could rise, and capital gains strategies will require careful planning.

📌 Key takeaway: Tax laws are shifting, and HNWIs need to be strategic now. Reviewing tax-saving opportunities today can set the foundation for a more secure financial future tomorrow.

At CKS Summit Group, we stay ahead of tax policy changes to help protect and grow your wealth. Contact us today to explore personalized strategies for 2025 and beyond.

Frequently Asked Questions (FAQs)

1. What are the penalties for underpayment of estimated taxes, and how can I avoid them?

If you don’t pay enough tax throughout the year, either through withholding or estimated tax payments, you may face an underpayment penalty from the IRS. To avoid this penalty, ensure that at least 90% of your current-year tax liability or 100% of your prior-year tax liability (110% for high-income earners) has been paid before year-end.

2. Can I still contribute to a Health Savings Account (HSA) for 2024, and what are the benefits?

Yes! If you have a High Deductible Health Plan (HDHP), you can contribute to an HSA until April 15, 2025, for the 2024 tax year. Contributions are tax-deductible and grow tax-free, and withdrawals for qualified medical expenses are also tax-free. The contribution limits for 2024 are $4,150 for individuals and $8,300 for families, with an additional $1,000 catch-up contribution if you’re age 55 or older.

3. How do I know if I should accelerate income or defer deductions instead of the other way around?

Whether you’re debating accelerating income or deferring deductions depends on your current and expected future tax bracket. If you anticipate being in a higher tax bracket in 2025, you may want to accelerate income into 2024 and defer deductions into 2025 to offset future taxes. Conversely, if you expect to be in a lower tax bracket next year, deferring income and accelerating deductions can help lower your taxable income for 2024.

4. Are there any last-minute opportunities to help reduce taxes for business owners before year-end?

Yes! Business owners can take advantage of several last-minute tax-saving strategies, such as:

• Bonus Depreciation & Section 179 Expensing – Purchasing and placing business equipment into service before year-end may provide immediate deductions.
• Making Retirement Plan Contributions – Self-employed individuals can contribute to a Solo 401(k), SEP IRA, or Defined Benefit Plan to help reduce taxable income.
• Prepaying Business Expenses – Paying for rent, subscriptions, or utilities in advance may allow for additional deductions in 2024.

5. How can I estimate whether I will owe taxes or receive a refund before filing?

You can use the IRS Tax Withholding Estimator or work with a financial professional to review your latest pay stubs, investment income, deductions, and tax payments. If you expect a shortfall, you may still have time to make an additional estimated tax payment to help minimize penalties and interest.

Disclaimer:

This blog is for informational purposes only and should not be considered tax or financial advice. CKS Summit Group does not provide tax, legal, or investment advice. Consult with a financial professional before making any decisions based on this information.