Introduction

Many people assume that once the calendar turns to January 1, their tax planning opportunities are over. That's not true.

While most strategies must be executed by December 31, there are still several powerful moves you can make before you file your tax return—often up until April 15 (or October 15 if you extend).

Below are the most important questions and answers.

Are There Still Ways to Reduce Last Year's Taxable Income?

Yes. The most impactful opportunities typically involve retirement and health-related accounts. Depending on your situation, you may still be able to:

• Make IRA contributions
• Fund a Health Savings Account (HSA)
• Contribute to a SEP-IRA or Solo 401(k) (if self-employed)

These contributions can reduce taxable income for the prior year—even though we're already in the new year.

Can I Still Contribute to an IRA for Last Year?

Yes—up until the tax filing deadline. You may fund either:

Traditional IRA

• May provide a tax deduction
• Reduces prior-year taxable income (if eligible)
• Especially valuable if you are near a tax bracket threshold

Roth IRA

• No deduction today
• Tax-free growth long-term
• Must meet income eligibility rules

Even if you're unsure which is best, you can fund one and evaluate options before filing.

What About an HSA?

If you were covered by a high-deductible health plan, you may still contribute to a Health Savings Account (HSA) for last year. HSAs offer a rare triple tax advantage:

1. Tax-deductible contributions
2. Tax-free growth
3. Tax-free withdrawals for qualified medical expenses

For many families, this is one of the most powerful tax-advantaged accounts available.

I Own a Business. Do I Have Additional Options?

Yes—and they can be significant.

SEP IRA

If you have self-employment income, you may:

• Open and fund a SEP-IRA up until the filing deadline (including extensions)
• Contribute up to 25% of eligible compensation
• Substantially reduce taxable business income

Solo 401(k)

If established by December 31:

• Employer contributions can still be made before filing
• These contributions may meaningfully reduce taxes

Business owners often have the largest post–December 31 planning flexibility.

What If I Underpaid Taxes During the Year?

You may still:

• Make an additional payment before filing
• Reduce potential penalties and interest

While this won't reduce taxes owed, it may limit penalty exposure.

Are There Mistakes That Can Still Be Corrected?

Yes. Before filing, you can:

• Recharacterize certain IRA contributions
• Correct excess contributions
• Fund a spousal IRA (if eligible)
• Review 1099 income and business expense classifications

This review process alone can uncover missed deductions.

What Can't Be Changed After December 31?

It's equally important to understand what is no longer available:

• Tax-loss harvesting for last year
• Increasing 401(k) salary deferrals
• Making charitable gifts for last year
• Adjusting paycheck withholdings retroactively

Once the year closes, those opportunities are generally gone.

DISCLOSURE: Securities and Investment Advisory Services are offered through Osaic Wealth, Inc., member FINRA/SIPC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth. Osaic Wealth does not offer tax or legal advice. This material is for general informational purposes only and is not intended to provide specific tax or legal advice. Contribution rules, deadlines, and eligibility requirements can vary by individual circumstance. We suggest that you discuss your specific situation with a qualified tax professional before making any decisions based on this information.