You Have Until December 31 To Make These Retirement Account Moves But You Might Want To Make Them Sooner

The Internal Revenue Service (IRS) modifies its rules on contributions virtually every year, and these changes can have a big impact on retirees' earnings. Before the end of the year, it's a good idea to take stock of your current accounts and see if they still align with your ideal retirement plan.

From contribution deadlines to strategic rollovers, here are 13 changes and their deadlines to help you determine which ones you need to act on right away.

If you're 73 or older, one of the most important things you need to do before the end of the year is to take your RMD. The exception is with your first RMD. If you turn 73 this year, you don't have to withdraw the first RMD until April 1, 2026. However, you must take a second RMD by December 31, 2026.

If you don't take your RMDs, the amount not withdrawn may be subject to an excise tax of 25%, 10% if the RMD is timely corrected within two years.

You can delay RMDs until you retire if you have a workplace plan, unless you own 5% or more of the company. Roth IRAs and 401(k)s only require withdrawals after the account owner dies.

Converting a traditional IRA or 401(k) into a Roth IRA allows your money to grow tax-free. That can be a big advantage in retirement, especially if you expect to be in a higher tax bracket down the road. The deadline is December 31, 2025.

Now may be a smart time to act. There's a good chance the tax rates will rise after the cuts from the 2017 Tax Cuts and Jobs Act end on December 31, 2025. Unless Congress intervenes to extend them, tax rates could rise in 2026.

You can still make a $7,500 catch-up contribution in 2025 if you're 50 or older. It is meant to help you save more for retirement.

You qualify for a higher catch-up limit of $11,250 if you're between 60 and 63. Similarly, the catch-up amount remains $3,500 for Savings Incentive Match Plan for Employees (SIMPLE) IRA plans.

Catch-up contributions for employment plans must be made by December 31, 2025. For IRAs, contribute until April 15, 2026.

Both 401(k) and 403(b) plans went up by $500. You can now save up to $23,500 if you're under 50. The new contribution ceiling applies to federal Thrift Savings and most governmental 457 plans.

IRS' limit doesn't include what your employer contributes as matching funds. The total combined restriction for personal and employer savings is $70,000 in 2025. It jumped from $69,000 in 2024.

Part-time workers will get better access to retirement plans in 2025. Thanks to the SECURE Act 2.0, you can join your employer's plan after two years of working at least 500 hours each year. Prior, you had to wait three years.

If you are a part-time employee, this update allows you to start saving for retirement much earlier through options like a 401(k).

The 2025 automatic portability rules make it easier to move your retirement savings when you change jobs. If your balance is $7,000 or less, your savings can transfer automatically to your new employer's plan if rollovers are allowed.

Small balances usually ended up in low-interest accounts or were cashed out without this change.

In 2025, you can save up to $7,000 in an IRA. You can make a further $1,000 in catch-up contributions to an IRA if you're 50 or older, to raise your limit to $8,000.

If you file separately but are married, the range is $0 to $10,000. The deadline is April 15, 2026.

Your ability to deduct contributions reduces at a fixed income limit if you or your spouse has a workplace plan.

The gross income limit starts from the base $126,000 for couples filing jointly. Individual filers and heads of household will work with $79,000. You need to contribute by April 15, 2026.

The contribution limits for 2025 phase out at a set modified adjusted gross income (MAGI) limit. The deadline is April 15, 2026.

The limit applies if you earn between $150,000 and $165,000 for individuals and $236,000 to $246,000 for married couples.

Individuals who earn over $165,000 and couples with a combined $246,000 cannot contribute.

The IRS raised income limits for the saver's credit in its cost-of-living update for 2025. This credit update lets you claim up to 50% of what you put into your retirement accounts.

You qualify if your income is $79,000 or less if you're married and file jointly, and $59,250 if you file as an individual. Contributions up to December 31, 2025, are eligible for claim.

You can put more money into SIMPLE and SEP retirement plans in 2025. The deadline for contributing to these plans is April 15, 2026.

The maximum for SIMPLE accounts rose to $16,500 in 2025. SEP plan limits also rose to $70,000 from $69,000. You can contribute up to $17,600 to certain eligible SIMPLE retirement accounts in 2025.

If you are a recipient of an inherited IRA and that person died after January 1, 2020, you must withdraw the funds within 10 years. If the original account owner had already started taking RMDs, you must take one RMD each year after their death before the 10-year period lapses.

Surviving spouses, children under 21, or those less than 10 years younger than the original owner are exempt from this rule. You must make the withdrawals over your lifetime if you are eligible.

Tax-loss harvesting refers to selling investments at a loss to reduce a tax bill and utilize those losses to offset gains from other investments. You must process tax-loss harvesting transactions before December 31, 2025.

The IRS allows you to reduce up to $3,000 of your income if your losses exceed your gains. This strategy works well in a volatile market when losses are easier to lock in due to price swings.

With some deadlines at the end of this year, a little planning now can go a long way toward protecting your nest egg. Whether you need to take an RMD or maximize your contributions, these year-end money moves will ensure you protect your hard-earned money.

Stay ahead of these deadlines to avoid wasting your retirement savings on penalties or missed opportunities.