Vision Capital Management Financial Advisor Portland Oregon

Vision Capital Management has been providing clients financial planning and investment management services since 1999. Visit our site to find out more.

Year-End Financial Planning Checklist

As the year draws to a close, we would like to highlight two key activities we’re undertaking on behalf of our clients and provide reminders on other best practices for year-end.

  1. Tax-Loss Harvesting

    Our investment team actively monitors portfolios for tax-loss harvesting opportunities. This involves selling securities at a loss to offset capital gains, while simultaneously reinvesting in a way that remains aligned with your long-term goals and risk tolerance. We also manage cost basis considerations to support overall tax efficiency.

  2. Required Minimum Distributions (RMDs)

    Clients age 73 or older are legally required to take annual Required Minimum Distributions (RMDs) from tax-deferred retirement accounts, such as traditional IRAs and 401(k)s. Vision Capital will assist in coordinating these distributions through your Fidelity or Schwab account as needed.  If you have an inherited IRA, Required Minimum Distributions (RMDs) may still be required, regardless of your age, depending on the terms of the inheritance and current IRS regulations.  If you hold an inherited IRA or have any questions regarding your RMD obligations, please contact your client relationship manager for guidance.

Additionally, the following items can help clients get organized and ready to welcome in the new year.

  • Maximize Retirement Contributions

    Even if you can’t contribute the full annual limit, increasing contributions before year-end can significantly enhance long-term retirement savings. If eligible, consider making “catch-up contributions,” which vary in amount depending on the type of retirement account.

  • Optimize Charitable Giving

    To receive a 2025 tax deduction, charitable donations must be completed by December 31. We recommend acting early, as nonprofits can be overwhelmed during the final weeks of the year. Additional strategies to consider include bunching donations into a single year for greater impact, donating highly appreciated long-term assets, or making qualified charitable distributions (QCDs) directly from an IRA.

  • Evaluate Income Tax Withholding

    Now is a good time to reassess your withholding elections to make sure they still match up with your current income level and tax situation heading into the new year.

  • Assess Medicare Coverage

    We recommend reading the Annual Notice of Change (ANOC) document, which details changes to costs and coverage. If you have experienced significant changes with your health, are seeing new providers, or have new prescriptions, it may be worthwhile to move to a new plan during open enrollment, which takes place from October 15 to December 7.

  • Contribute to Your Health Savings Account

    Health Savings Accounts (HSAs) carry the unspent funds over to the next year. If you are able, it is advantageous to maximize your contribution to your HSA for a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical costs.

  • Use Flexible Spending Accounts (FSAs)

    Flexible spending funds are generally subject to a “use it or lose it” rule. Depending on your plan, unused balances may expire at year-end. Eligible purchases include new contacts or glasses, prescriptions, appointment copays, and over-the-counter items such as first aid supplies, sunscreen, and cold and flu remedies.

  • Review Estate Planning Documents

    Outdated beneficiary designations are unfortunately common and can lead to unintended consequences. Take the time to review and update your beneficiary forms to ensure they accurately reflect your current wishes and circumstances.

If you have any questions about the topics outlined above, please don’t hesitate to reach out. We are here to support your financial goals with thoughtful, proactive guidance.

Maximizing Employee Benefits

Over time, the way humans work has evolved, and so have employee pay and benefits. The concept of employee benefits emerged during the Industrial Revolution in response to harsh working conditions when industrialists began offering housing, medical care, and educational opportunities to attract workers. As labor rights developed, benefits became a formal part of the employer structure. In the late 19th century, German Chancellor Otto von Bismarck introduced a formal health insurance system for workers. This watershed moment influenced organizations and governments worldwide and eventually evolved into the employee benefits we know today.

Today, it is estimated that 90% of U.S. companies with 50 or more employees offer healthcare and/or other benefits to their workers. According to one study, benefits account for roughly 30% of an average worker’s total compensation. However, while employers now provide more benefits than ever, employee usage has not kept pace. More than one-third of employees report that they do not fully understand the benefits offered to them, and nearly half (46%) do not take all their paid time off.1, 2

To make sure you are getting the most out of your employee benefits, consider the following best practices:

Understand Total Compensation and Review Annually

Go beyond your base salary to calculate the full value of your compensation package. This may include 401(k) or other retirement account contributions and matches, health insurance premiums, stock options, tuition or continuing education reimbursement, paid time off, and bonus pay or profit-sharing. It is also important to find out if you have left any funds behind with previous employers. As of 2023, there were 29.2 million accounts left behind with approximately $1.65 trillion in forgotten assets, but thanks to SECURE 2.0, the Department of Labor created a database for workers to find old plans.3

We recommend clients review their benefits annually and adjust contributions and expenses as needed.

Max Out Employer Contributions

If your employer offers a 401(k) or other retirement account match, contribute at least enough to receive the full match, otherwise, you are leaving free money on the table and missing out on the power of compound growth. Similarly, if you have access to a flexible spending account (FSA) or health savings account (HSA), use it whenever possible to manage health and childcare expenses while lowering taxable income.

Leverage Equity Compensation Wisely

Stock options and equity-based pay can be a powerful part of your compensation package, but it is important to understand how they work. Do your research and find out your vesting schedules, your options for selling, and the potential tax implications. We recommend collaborating with your advisor at Vision Capital, as well as your tax and legal professionals, to plan for liquidity events such as an IPO or buyout, or personal shifts such as a career change or retirement.

Optimize Benefits Use

Take advantage of preventive care appointments and wellness programs through your insurance plan to reduce long-term healthcare costs. Explore additional benefits such as Employee Assistance Programs (EAPs), which may offer mental health counseling, legal guidance, financial education, and career coaching. And don’t forget to use all your paid time off (PTO); it’s a valuable part of your compensation, essential for career longevity, and critical for preventing burnout.

Sources:

  1. “Voya Survey Finds One-Third of American Workers Don’t Understand the Benefits They Selected During Open Enrollment,” Voya Financial website, January 29, 2021.
  2. Juliana Menasche Horowitz and Kim Parker, “How Americans View Their Jobs,” Pew Research Center, March 30, 2023.
  3. Jessica Kickler, “Forgotten 401(k) Fees Cost Workers Thousands in Lost Retirement Savings,” CNBC, June 7, 2025.

Department of Labor Retirement Savings Lost and Found Database:
https://lostandfound.dol.gov/ 

The SECURE 2.0 Act and You: How New Legislation Is Enhancing Retirement Planning

by Maria Malloy, CFP®, Client Relationship Manager

In 2019, Congress passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act, significantly reshaping the retirement landscape for millions of Americans for the first time in many years. The SECURE 2.0 Act was enacted soon after in 2022, expanding upon and enhancing the original legislation. Since its passage, several measures of the SECURE 2.0 Act have already been rolled out while others go into effect this year. This article will highlight several significant provisions of the SECURE 2.0 Act and briefly explain how they may impact those planning for, or already in, retirement.

Required Minimum Distributions

Participants of traditional tax-deferred retirement accounts such as IRAs and 401(k) accounts must take required minimum distributions (RMDs) upon reaching a given age. For nearly 40 years, that age was 70½. It increased to 72 with the 2019 SECURE Act, and the SECURE 2.0 Act pushed it back further still. Today, individuals born between 1951 and 1959 must begin taking RMDs at age 73, and at age 75 for those born in 1960 or after. This allows the funds to remain in the account for additional growth potential and greater flexibility of withdrawals and tax management.

The SECURE 2.0 Act also reduced the penalty for missing an RMD and for taking out less than the required amount. The penalty is now 25% of the shortfall, down from 50% prior to the SECURE 2.0 Act. Furthermore, if a correction is made in a timely manner, the penalty is dropped to 10%.

Changes to Roth Retirement Accounts

  • Elimination of RMDs from employer-sponsored Roth plan accounts – Roth retirement accounts differ from traditional retirement accounts in that contributions are made with after-tax funds. While Roth IRAs are not subject to RMDs during the owner’s lifetime, prior to the SECURE 2.0 Act, employer-sponsored plans such as Roth 401(k) or Roth 403(b) plans were. Effective 2024, that is no longer the case, allowing Roth funds across plan types to be treated the same and lessening confusion for plan participants.
  • Employer contributions – For individuals still working and saving for retirement with an employer-sponsored Roth 401(k) plan, employees can now elect to have employer contributions be made to the Roth side of the plan. While the amount is taxable to the employee in the year the contribution is made, this provision allows employees to accumulate additional Roth savings for tax-free growth and withdrawals in retirement.
  • 529 plan rollover to Roth – Concerned that saving for education expenses with a 529 plan will leave unused funds behind after graduation? A highly anticipated statute of the SECURE 2.0 Act aims to alleviate that concern by allowing a lifetime maximum of $35,000 to be moved to a Roth IRA. This will allow the tax advantages of the 529 plan to be retained while giving a young adult a head start on retirement. Conditions apply however, so it is imperative to discuss this option with your financial professional before initiating any transfers.
  • Opportunities for small businesses and the self-employed – Another change the SECURE 2.0 Act brings is the opportunity for small businesses and self-employed individuals to establish Roth SEP IRAs (Simplified Employee Pension) and Roth SIMPLE IRAs (Savings Incentive Match Plan for Employees). Previously, these types of accounts only allowed pre-tax contributions.

The SECURE 2.0 Act also created three tax credit opportunities for small businesses. These aim to incentivize the implementation of a retirement savings plan for employees; have an automatic enrollment feature; and to make contributions on behalf of employees. Qualifying for the credits is subject to specific requirements, so it would be wise to consult with a licensed CPA to ensure that all conditions are met in order to attain the credit.

Catch-Up Contributions

The SECURE 2.0 Act contains multiple provisions related to retirement plan catch-up contributions, which allows older workers nearing retirement to contribute funds beyond the standard limit.

  • Individuals 50 years and older and earning more than $145,000 in the prior year (adjusted for inflation) must make catch-up contributions to 401(k), 403(b), and 457(b) plans with after-tax dollars to the Roth side of the retirement plan. This does not apply to catch-up contributions to IRAs. Originally set to become effective in 2024, the IRS granted a transition period to allow plans time to make the necessary administrative adjustments.
  • The allowable catch-up contribution limit to IRAs is now indexed for inflation and will adjust annually. This applies to workers aged 50 and above.
  • A “super catch-up” contribution for individuals aged 60-63 goes into effect this year. Applicable to employer-sponsored retirement plans only, it allows the participant to contribute 150% of the normal catch-up limit of $7,500. That means in 2025, individuals in that four-year age range can contribute an additional $11,250 for a total of $34,750.

Charitable Giving

For older individuals who are charitably inclined, qualified charitable distributions (QCDs) have been a great way to support a charitable cause while also reducing one’s taxable income. Upon reaching age 70½, individuals can gift directly from their IRA and have the amount count towards their RMD and be excluded from income.

The SECURE 2.0 Act changed the annual allowable QCD amount to now be indexed for inflation ($108,000 in 2025) and grants a one-time allowance to use $50,000 of the QCD limit to fund a charitable trust or annuity as an alternative to gifting directly to a charity.

Other Notable Provisions

  • A special needs trust that is a beneficiary of an IRA is now considered an eligible beneficiary. Therefore, the inherited assets do not need to be distributed within 10 years as is required for noneligible beneficiaries.
  • Student loan payments may now be treated as elective deferrals for employer-matching purposes in workplace retirement accounts. This enables the employee to make payments towards their student loans and receive the employer match contribution to their retirement account.
  • A surviving spouse who is a beneficiary of a retirement account can now choose to be treated as the deceased spouse for RMD purposes. Particularly if the deceased spouse is younger, this allows the surviving spouse beneficiary to delay RMDs until the deceased spouse would have been RMD age. The calculated RMD amount is also based on the deceased spouse’s younger age, making the RMD amount smaller.

These are just a few of the key changes introduced by the SECURE 2.0 Act. While the legislation presents exciting opportunities for nearly all Americans, its complexity necessitates careful interpretation and application. To make the most of these provisions, and to avoid unintended consequences, it is important to collaborate closely with a trusted financial advisor and tax professional. With proper planning, the SECURE 2.0 Act can be a valuable tool in helping Americans achieve their long-term retirement goals.

Sources:

  1. Fidelity Viewpoints, “SECURE 2.0: Rethinking Retirement Savings,” Fidelity.com, May 20, 2025.
  2. “H.R. 2954 – Securing a Strong Retirement Act of 2022,” Congress.gov, March 30, 2022.
  3. Levine, Jeffrey, “SECURE Act 2.0: Later RMDs, 529-to-Roth Rollovers, and Other Tax Planning Opportunities,” Kitces.com, December 28, 2022.

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