As the year draws to a close, both individuals and retirement plan sponsors face a series of important deadlines that can significantly impact tax planning, compliance, and long-term retirement outcomes. Many retirement-related actions must be completed by December 31, while certain contributions for the prior tax year can be made up until the tax filing deadline in April.
Below is a breakdown of the most important end-of-year deadlines for 2025, including what needs to be done before year-end and what can wait until tax time.
If you are age 73 or older, or a beneficiary of an inherited IRA, you must take your Required Minimum Distribution by year-end. Missing your RMD could result in a 25% penalty on the amount not withdrawn—one of the steepest in the tax code.
All employee salary deferrals for workplace retirement plans must be completed through payroll by the end of the calendar year. If you plan to max out your contributions, make sure your payroll deductions are set up appropriately before the last pay cycle.
To count as a 2025 tax-year conversion, the transfer from a traditional IRA or employer plan to a Roth IRA must be finalized by December 31. Conversions can be a powerful long-term tax and retirement strategy, but they must occur within the calendar year.
Individuals age 70½ or older can donate up to $108,000 directly from an IRA to a qualified charity for the 2025 tax year. QCDs can satisfy part or all of your RMD and may reduce your taxable income.
You have until the tax filing deadline—April 15, 2026—to make contributions to a Traditional or Roth IRA for the 2025 tax year, whether or not you file an extension. This gives you additional flexibility if you're still determining your tax strategy.
Plan sponsors must ensure all RMDs for participants already receiving distributions are processed and issued by year-end to remain compliant with IRS rules.
Sponsors of non-governmental 457(b) plans must amend their plans by this date to reflect legislative updates from the SECURE Act, CARES Act, and SECURE 2.0. Most other plan types have an extended amendment deadline of December 31, 2026, but reviewing required changes ahead of time is still recommended.
Employers can make matching or profit-sharing contributions for the prior plan year until their tax filing deadline, including extensions. This can provide meaningful tax deductions and boost participant retirement savings.
Staying ahead of these deadlines ensures you maximize retirement savings opportunities, remain compliant with IRS rules, and avoid costly penalties. Whether you’re an individual planning for the future or an employer overseeing a plan, now is the perfect time to review your year-end checklist and take action before the deadlines arrive.
If you need help navigating retirement plan rules, contributions, or year-end compliance requirements, the RMC Group team is here to assist.
Click here to schedule a meeting with our retirement team today or call our office at 239-298-8210.