Filing Your 2025 Taxes? Moves You Can Still Make to Lower Your Tax Bill

If you’re getting ready to file your 2025 taxes, you may still have time to lower what you owe.

Many people assume tax planning ends on December 31, but retirement contributions can still be made until the tax filing deadline. That means you still have opportunities to reduce your 2025 tax bill while strengthening long-term savings.

Here are practical steps you can still take before filing.

Note: Before making changes, consider consulting a qualified tax advisor. Tax situations vary, and a professional can help you understand how these strategies apply to your specific situation. 

Contribute to an IRA for 2025 Before the Deadline

You can make Traditional IRA contributions for the 2025 tax year until April 15, 2026. Here are the 2025 IRA contribution limits:

• Up to $7,000 per person
• $8,000 if you’re 50 or older

If you qualify, contributions to a Traditional IRA can lower your taxable income and may reduce what you owe or increase your refund.

Whether your IRA contribution lowers your taxes depends on two things: how much income you earned and whether you or your spouse have a retirement plan at work, like a 401(k) or pension. If you’re unsure, it’s worth checking before you file so you don’t miss potential savings.

Your next move

If you haven’t maxed out your IRA for 2025, you can still contribute before filing. We offer two ways to get started: use Retirement Central to manage contributions yourself or connect with Frontwave Investment Services through LPL Financial for personalized guidance.

Consider a Roth IRA for Future Tax Savings

A Traditional IRA may lower your taxes now because contributions can be deductible, while a Roth IRA works the opposite way. Roth contributions don’t lower taxes today, but qualified withdrawals in retirement are tax-free.

A Roth IRA may make sense if:

• You expect your income to grow
• You expect tax rates to rise later
• You want flexibility when planning retirement income

Many savers use both Traditional and Roth accounts to balance tax savings today with tax-free income later.

Your next move

If you’re unsure whether Traditional or Roth contributions fit your situation, speak with a Frontwave Investment Services advisor through LPL Financial to review your options.

Review Catch-Up Contributions for Retirement Plans

If you’re age 50 or older, employer retirement plans allow additional contributions. For 2026, this means:

• Standard 401(k) contribution limit: $24,500
• Catch-up contribution: $8,000
• Potential total contribution: $32,500

Starting in 2026, workers earning more than $150,000 will generally need to make catch-up contributions on a Roth basis, meaning contributions are made with after-tax dollars, and future withdrawals can be tax-free.

Now is a good time to review how Roth savings fit into your retirement strategy.

Your next move

After filing, consider adjusting your 2026 contributions and speak with an Investment Services advisor if you want help planning next steps.

Don’t Miss the Deadline Opportunity

Once you file your return, opportunities to reduce your 2025 tax bill disappear. Acting before the deadline can still lower what you owe while strengthening retirement savings.

What’s Your Best Next Step?

If you’re filing soon, now is the time to decide how to use tax season to strengthen retirement savings. Frontwave offers two ways to move forward, depending on how much guidance you want.

Prefer to Do It Yourself?

Use Retirement Central to:

• Start or manage an IRA
• Make contributions before the tax deadline
• Update beneficiaries
• Access retirement education and planning tools
• Submit forms electronically and manage accounts securely

This works well if you already know what you want to do and simply need an easy way to take action.

Want Help Building a Plan?

Frontwave Investment Services, available through our partnership with LPL Financial, can help you:

• Decide between Traditional and Roth strategies
• Review retirement accounts or rollovers
• Build short- and long-term retirement plans
• Plan future contributions and retirement income

Stop by a branch or schedule an appointment to get started.