Tax season may be behind you, but a few smart moves today can make next year’s filing feel even easier.

For many families, the end of tax season signals it’s time to tuck away the W-2s and 1099s for another year. But spring is actually a great time to pause and plan. With the year still in its early stages, a few thoughtful financial decisions now can help head off surprises and set you up for a smoother, more tax-efficient year ahead.

While there’s likely no need to overhaul your whole tax planning process (unless you find yourself owing or receiving way too much each April), making some intentional decisions about your withholdings, retirement contributions, and other financial matters could help keep more money in your pocket in the long run.

Below are four simple but effective steps to consider as you look ahead.

1. Max out your company-sponsored retirement program

Roughly 71.5 million workers have access to an employer-sponsored retirement plan—so chances are, you or your spouse do too. If you don’t already have automatic contributions established for your 401(k), 403(b), TSP, IRA, or similar account, that should be first on your post-tax season to-do list.  

Already contributing? Nice work. Now might be the right time to give those contributions a boost.

These tax-deferred accounts let your money grow without being taxed each year, and what you contribute (up to the annual limit) may help reduce your taxable income next April. That’s a win for your retirement and your tax strategy.

For 2025, the annual contribution limits are:

401(k), 403(b), 457, and TSP

• $23,500
• $31,000 for those 50-59 and over 64
• $34,750 for those 60-63

IRA and Roth IRA

• $7,000
• $8,000 for those 50 and over  

If maxing out the full annual limit feels out of reach, try gradually working your way up. For example, if you contributed 3% of your salary in 2024, aim for 5% in 2025. Even a small increase—especially after a raise—can have a meaningful long-term impact thanks to the power of compounding.

2. Adjust Your Withholding to Avoid Surprises

Wrapping up tax season with a refund or a bill that’s much larger than expected? It might be time to revisit your withholding. A large refund might feel like a bonus, but really, it just means you’ve been giving the IRS an interest-free loan all year.  That money could’ve gone toward your 401(k), paid down debt, or helped cover summer camp or travel plans with the kids.  

On the flip side, a large tax bill can come with penalties and a cash flow crunch, depending on the size of the payment required. If your bill is substantial enough, the IRS may require you to make estimated payments moving forward to avoid such issues in the future.

In either scenario, unexpected outcomes deserve some post-tax season follow-up. Print off your most recent pay stub and discuss this concern with your accountant or financial advisor. They should be able to evaluate your most recent return, identify potential withholding errors, and identify other ways to shore up your tax strategy. 

3. Review Your After-Tax Investments

Most families focus first on tax-deferred accounts like 401(k)s and IRAs—and for good reason. But if you’ve also got a taxable brokerage account, it’s worth reviewing how those investments fit into your overall tax picture.

While after-tax accounts don’t come with retirement-specific tax breaks, they still offer some flexibility and potential tax advantages. For example, they’re not subject to contribution limits or age restrictions, and you can access the money whenever you need it—whether that’s for a down payment, college expenses, or a big family trip.

Even better, smart strategies like tax-loss harvesting or holding investments long enough to qualify for the lower long-term capital gains rate can help reduce your tax liability over time.

Quick refresher:

• Short-term capital gains (from investments held less than a year) are taxed at your ordinary income rate.
• Long-term capital gains (from investments held for more than a year) are taxed at lower rates—anywhere from 0% to 20%, depending on your income.

The key here is balance. Spreading your investments across different tax “buckets” gives you more flexibility and control—especially down the road when you may want to manage your income in retirement or fund major life goals.

4. Evaluate Your Charitable Donations

Giving back is often a meaningful part of many families’ financial lives. And in some cases, your generosity can come with a tax benefit—but it depends on how you give and whether you itemize your deductions.

Right now, the standard deduction is relatively high: $15,000 for single filers and $30,000 for couples filing jointly. Unless your total itemized deductions exceed that amount, your charitable gifts likely won’t lower your tax bill. (Of course, that doesn’t make them any less valuable from a personal or community standpoint.)

That said, there are ways to make your giving more tax-efficient. One option is “bunching” donations—essentially, combining multiple years of giving into a single tax year. For example, if you usually donate $10,000 each year, contributing $20,000 in one year instead might push your itemized deductions above the standard threshold, making it possible to deduct the full amount.

Post-Season Planning Starts Now

Making these four tax moves now can help next year’s tax season feel a whole lot easier—and more predictable. Whether you’re fine-tuning your withholdings, giving more strategically, or simply looking to keep more of what you earn, small steps today can have a big impact down the road.

If you’re ready to tackle tax planning or need guidance with any of these strategies, book a call with our team at Lake Road Advisors today. We’re here to help you simplify your finances and achieve your goals.

Sources: 

1. https://www.hicapitalize.com/resources/401k-account-access-statistics/
2. https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000

Lake Road Advisors, a Fee-Only, independent financial planning firm with offices in Corning, NY, Ithaca, NY, and Vancouver, WA, works with clients virtually all across the country. Paul Sydlansky, the founder of Lake Road Advisors LLC, has worked in the financial services industry for 20+ years. Prior to founding Lake Road Advisors, Paul worked at Morgan Stanley in Manhattan for 13 years. While at Morgan Stanley, Paul was a senior-level manager within the Institutional Equities Department. In 2018 he was named to Investopedia’s Top 100 Financial Advisors list. Paul received a Bachelor’s degree in Economics from Marist College and holds an MBA from New York University Leonard N. Stern School of Business. Paul is a CERTIFIED FINANCIAL PLANNER™ and a member of the National Association of Personal Financial Advisors (NAPFA) and the XY Planning Network. They can be reached by phone at the Corning, NY office at (607) 438-2914, Ithaca, NY office at (607) 463-8400, or Vancouver, WA office at (607) 292-2172 or at the firm’s website at https://lakeroadadvisors.com/

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security, investment, or other financial product. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.

This material has been prepared in collaboration with Crystal Marketing Solutions, LLC, and has been edited with the assistance of artificial intelligence tools. The information presented is based on sources believed to be reliable and accurate at the time of publication. This material is for educational purposes only and does not necessarily reflect the views of the author, presenter, or affiliated organizations. It should not be construed as investment, tax, legal, or other professional advice. Always consult a qualified professional regarding your specific situation before making any decisions.