Year-End Financial Strategies:

Giving, Planning, & Purpose

The end of the year can bring a mix of reflection, gratitude, and a sense of responsibility. It’s natural to look at what matters most to you: your family, your business, your career, your faith, your community, and make thoughtful decisions that affect both your finances and the people around you.

For many, this time of the year offers a chance to combine generosity with long-range planning in ways that feel meaningful to you and others

At iWealth, we talk a lot about stewardship: how you manage what you’ve accumulated, how you care for the people you love, and how your influence can extend well beyond your lifetime. This time of year brings all three into a sharper focus.

In our Quick Guide, we’ll explore how giving, planning, and purpose can work together at year-end to create something larger than any one item on your to-do list: a season of significance for you and those who depend on you.

Chapter 1: The Spirit of Giving in Financial Planning

Giving isn’t just a financial act; it’s a profound expression of care. It shapes mindset, strengthens perspective, and reminds us why we work so hard in the first place. Many people we meet ask us:

● “How does charitable giving fit into my overall financial plan?”

● “What are the long-term benefits of purposeful giving?”

These are common questions, and the answers often go far beyond the numbers. Charitable giving aligns with your planning by integrating your values into your holistic financial plan.

Whether you give through a donor-advised fund, annual gifts, volunteering, or a Qualified Charitable Distribution, each approach can be structured to support causes you care about while still keeping your broader tax and retirement strategies on track.

The long-term benefits are greater than a deduction; purposeful giving strengthens family values, creates a lasting impact in your community, and adds meaning to the lives of your family members.

Giving Helps You Live Beyond Yourself

Brad Connors, the founder of iWealth, believes that financial planning should include generosity, because generosity reframes challenges and opens us to what matters most. He often references 2 Corinthians 9:7: “God loves a cheerful giver.”

Whether clients share that same faith or traditions or simply value giving back, the principle holds: giving shifts the focus from financial stress to real purpose. Examples of how Brad and the iWealth team have built that philosophy into our culture include:

• Encouraging team members to volunteer
• Quarterly random acts of kindness
• The iWealth Food Baskets & Backpacks outreach
• A culture built around service, kindness, and supporting our communities

When you look outside yourself and offer time, kindness, or financial support, personal challenges take on a different perspective. Gratitude grows. Stress eases. You see your blessings more clearly.

Watch our video on: “The Financial Side of Charitable Giving.”

True wealth isn’t only built; it’s shared. When we give, it:

• Reminds us what gratitude means
• Strengthens families and communities
• Offers connection and stability
• Provides a sense of purpose
• Creates a ripple effect of kindness

Community care may not appear on a balance sheet, but it can provide significant value in your life.

When financial planning includes giving, time, skills, and money, you create an impact that lasts long after the holidays pass.

Chapter 2: Year-End Opportunities to Manage and Preserve Your Wealth

The end of the year is also a crucial time to review your retirement accounts, contributions, and investment strategy. This season brings some of the most common questions, such as:

• “Which accounts need to be funded before December 31?”
• “What’s the deadline for IRA and SEP-IRA contributions?”
• “Is there a risk of missing market movement if I wait?”

Let’s break it down.

Tax-Sheltered Accounts: What You Can Still Do This Year

Not every account follows the same deadline. Here are key reminders:

• Traditional IRAs and Roth IRAs: You typically have until tax filing day in mid-April to make contributions for the prior year. (1)
• SEP IRAs: Also typically open until tax filing day for contributions.
• 401(k)s and SIMPLE IRAs: These plans typically require funding by calendar year-end, depending on your plan.

If you’re unsure which rules apply to your accounts, this is a good time to consult with your Minnesota financial planner to ensure nothing is overlooked.

Don’t Miss Market Movement

One of the most overlooked points in year-end tax planning is this: If you wait until tax time to contribute, you may miss the market movement between January and April.

Whether markets rise or fall, waiting means missing out on months of compounding. Consistency often matters more than timing, and the early part of the year can have a significant impact on long-term results.

At iWealth, we can guide you through these decisions in a clear, disciplined manner, helping you understand the deadline that applies to your plan and how contributions fit into your long-term strategy.

Chapter 3: Smart Gifting Strategies Before Year-End

Purposeful giving can take various forms, including financial, emotional, or practical. But when it comes to tax-smart decisions, many families ask:

What are appropriate charitable giving strategies before December 31?

Year-end is the key window for charitable gifts to count for this tax year, which can include straightforward methods, such as cash contributions, appreciated stock, or directing part of a Required Minimum Distribution through a Qualified Charitable Distribution (if you are over 70 years old).

All charitable gifts must be completed or postmarked by December 31, and QCDs should be initiated in mid-December to allow sufficient time for processing. These approaches support causes you care about while aligning with thoughtful tax planning.

How does gifting to family work?

Family gifting is often simpler than people expect. You can give up to the annual exclusion amount per recipient without triggering a gift tax return, making it a practical way to support children or grandchildren. Here’s the current annual gift-tax limit (for 2025 and 2026) for gifts to family or other individuals (2):

• For 2025, the annual exclusion is $19,000 per recipient.
• As of 2026, that exclusion remains $19,000 per recipient.
• If you are married, you and your spouse can both give gifts, up to $38,000 per recipient per year (i.e., each spouse uses their own $19,000 exclusion and you file a “gift-splitting” election).
• If gifts to one person in a single year exceed the $19,000 limit, they must be reported on IRS Form 709. Whether any tax is owed will depend on your available lifetime gift-and-estate tax exemption.

For minors, gifts can be directed to custodial accounts or used to fund education or facilitate savings goals.

While these gifts don’t reduce income taxes, they can be part of a broader, comprehensive financial plan and legacy strategy, especially for families who want to pass along values as well as financial support.

Does volunteering provide benefits beyond helping others?

Absolutely! Volunteering does far more than meet a community need.

Research, including studies from Harvard, indicates that individuals who volunteer frequently often experience a boost in mood, a stronger sense of social connection, and a more profound sense of purpose. Giving your time puts day-to-day stress in perspective and reinforces the gratitude that shapes a healthier financial mindset. It’s one of the clearest reminders that the impact of service runs both ways.

Key Year-End Deadlines

• Required Minimum Distributions (RMD-related charitable giving,for individuals age 70 or older): Contributions should be processed by early December. This allows time for custodians and charities to receive and acknowledge the transfer before the end of the year.
• Non-RMD charitable gifts: Must be postmarked or completed by December 31 to count for the current tax year.
• Gifting to children: Minnesota families can gift up to $19,000 per child under 18 without filing a gift tax return (based on current limits). (3)

Considering a More Formal Path: Family Foundations

If your goals include long-range giving and teaching future generations how to carry on your values, a family foundation may be worth considering.

At iWealth, we help families determine whether a foundation aligns with their goals, philanthropic interests, and long-term estate plan. This is where legacy planning in Minnesota intersects with purposeful giving, helping you build a structure for generosity that lasts well beyond this season.

Chapter 4: Qualified Charitable Distributions (QCDs): Giving from the Heart and the IRA

Some of the most common year-end questions we receive are:

What Is a Qualified Charitable Distribution?

A Qualified Charitable Distribution (QCD) is a direct transfer from your IRA to a qualified charity if you’re age 70½ or older. Instead of withdrawing the money yourself and creating taxable income, the funds move straight from the IRA to the organization you want to support.

It’s one of the simplest ways to combine charitable giving with tax-efficient retirement planning.

Does a QCD Count Toward My RMD?

Yes. A QCD can satisfy all or part of your Required Minimum Distribution for the year.

That’s one reason timing is so important: conversations usually need to happen in early December so custodians have enough processing time. When done correctly, a QCD allows you to meet your annual RMD obligation while directing those dollars to a charity that matters to you.

Why QCDs Matter

Most couples today use the standard deduction when filing taxes, meaning traditional charitable gifts may not provide additional deduction benefits. But QCDs are different.

If you’re over age 70, giving directly from your IRA to a qualified charity can:

• Satisfy part or all of your Required Minimum Distribution
• Avoid adding that distribution to your taxable income
• Allow you to maintain your standard deduction
• Support causes you care about

Timing Is Crucial

If you want your RMD to go to a charity, conversations with your advisor should begin by the first week of December. This gives the custodian enough time to process the transaction before year-end.

If you’re thinking about using QCDs as part of your legacy plan or long-term giving structure, this might also be the time to explore whether a family foundation fits your goals.

Watch our video: “Mastering the Art of Gifting and Inheritance Planning.”

Chapter 5: Year-End Tax Planning for a Stronger 2026

As the year comes to a close, your decisions today will influence the next several tax years. Here are common questions to consider:

What should I discuss with my tax accountant before the end of the year?

A short conversation before December 31 can help you spot opportunities that may otherwise slip by. Ask about capital gains for the year, whether a Roth contribution or conversion makes sense, and if any adjustments are needed to retirement withdrawals or estimated taxes.

It’s also a good time to confirm that charitable gifts, QCDs, and business deductions are recorded correctly, especially if you’re coordinating your financial strategy with a Minnesota financial planner.

What should I be thinking about for the 2026 tax season?

You can begin formulating a plan for the new year now. By reviewing these topics early, you create flexibility for the next two tax years and give yourself room to make thoughtful decisions rather than rushed ones. Here are a few examples:

• Estate documents may need updating
• Your retirement withdrawal plan might evolve
• Tax law changes could influence how you save and give today.

Chapter 6: Teamwork That Builds Purpose: How iWealth Serves Clients Together

There’s another part of year-end that often goes unmentioned: the team behind the planning you rely on: iWealth.

A Team Built for Service

iWealth is intentionally structured to enable advisors to cover for one another, respond quickly, and provide consistency. This model wasn’t just built in theory; it was shaped through real-life challenges.

When one of our financial advisors, JP Eykyn, was diagnosed with leukemia, and again when it returned, the team stepped in without hesitation. Our team of Minnesota financial advisors supported his clients, supported each other, and kept everything moving.

The same happened in other seasons of hardship. The team showed what it means to “row the boat” together.

Clients didn’t experience gaps, delays, or confusion. They experienced our collective support and services. That model continues today.

Year-end often brings more appointments, more planning questions, and more financial decisions that must be made. The strength of the iWealth team means:

• Calls get returned
• Accounts get handled
• Deadlines are met
• Clients receive consistent, high-quality care

This approach enables us to provide comprehensive, holistic financial planning, charitable giving strategies, legacy planning in Minnesota, and retirement guidance through a coordinated team of experts that has your best interests at heart.

At iWealth, we’re honored to walk alongside Minnesota families who seek to live with purpose, both today and in the years ahead.

If you’d like to think through Minnesota charitable giving strategies, legacy planning in Minnesota, or year-end tax planning, our team is here to help you review your financial plan for what matters most. Let’s connect.

Disclosures:

1) Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.

2) https://www.irs.gov/

3) https://www.360financial.net/post/minnesota-gift-tax-guide

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.