As the leaves begin to turn and the year winds down, fall is the perfect time to pause and check in on your financial goals. Whether you’re retired, still working, or somewhere in between, a little planning now can make a big difference come December. With the holidays approaching and the end-of-year deadlines looming, this season offers a valuable opportunity to tidy up your finances and prepare for a strong start to 2026.
Here are a few key areas to focus on this season:
Required Minimum Distributions (RMDs)
If you’re age 73 or older, or if you’ve inherited an IRA, you’re likely required to take a Required Minimum Distribution (RMD) before December 31. Your first RMD must be taken by April 1 of the year after you turn 73, and subsequent RMDs are due annually by December 31 [1]. Missing this deadline can result in a 25% excise tax, though this may be reduced to 10% if corrected and reported properly using IRS Form 5329 [2].
Not sure how much you need to take or from which accounts? Our team can help you calculate your RMD and schedule the distribution to ensure compliance and avoid penalties.
Tip: You have several options for how to use your withdrawals, depending on your financial needs and goals. For example, if you don’t need the income from your RMD, consider using it for a Qualified Charitable Distribution (QCD)—a tax-efficient way to give back.
Qualified Charitable Distributions (QCDs)
A QCD allows IRA owners or beneficiaries aged 70½ or older to donate up to $100,000 directly to a qualified charity—without counting it as taxable income. This strategy can also satisfy all or part of your RMD [3].
Benefits of a QCD:
- Satisfies all or part of your RMD
- Reduces taxable income
- Supports your favorite nonprofit organizations
To qualify, the funds must be transferred directly from your IRA to the charity. Donations to donor-advised funds or private foundations do not qualify [3]. New for 2025: The IRS has added Code Y to Form 1099-R, Box 7 to identify QCDs, making it easier for taxpayers and preparers to report them accurately [4].
If you’re considering a QCD this year, we recommend starting the process early to ensure it’s completed by December 31.
Fall Financial Check-In
Beyond RMDs and QCDs, fall is a great time to take stock of your overall financial picture. Here are a few items to review before the year ends:
- Retirement Contributions: Are you on track to max out your 401(k), IRA, or other retirement accounts? If not, there’s still time to make additional contributions.
- Beneficiary Designations: Life changes happen—marriages, births, deaths. Make sure your beneficiary information is up to date across all accounts.
- Tax Withholding & Estimated Payments: Review your current tax situation to avoid surprises in April. Adjust your withholding or make estimated payments if needed.
- Charitable Giving & Gifting Strategies: Whether you’re donating to charity or gifting to family, now is the time to plan for tax-efficient giving.
- 2025 Goals: Schedule a meeting with us to discuss your financial goals for the coming year. Whether it’s retirement planning, estate updates, or investment strategy, we’re here to help.
Let’s Make the Most of the Season
Fall is a season of change—and a great reminder to make sure your financial plan is still aligned with your life. Taking time now to review your finances can help you avoid last-minute stress and set the stage for a successful year ahead.
If you have questions about RMDs, QCDs, or anything else, we’re here to help. Let’s work together to make sure your financial house is in order before the year wraps up.
Warm regards,
Sage Capital Wealth Partners
Phone: 864-999-4150
Email: admin@sagecapitalwealth.com
Website: www.sagecapitalwealth.com
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