(This article originally appeared in the October 2025 issue of Military Officer, a magazine available to all MOAA Premium and Life members who can log in to access our digital version and archive. Basic members can save on a membership upgrade and access the magazine.)

The end of the year usually means it’s time to tackle your financial to-do list. But new changes to tax law may give you more to consider when getting your personal finances in order.

The One Big Beautiful Bill Act made permanent some changes due to expire in 2025. For example:

• The seven tax brackets — 10%, 12%, 22%, 24%, 32%, 35%, and 37% — will remain in place.
• The standard deduction increased to $15,750 for single filers and $31,500 for married couples filing jointly.
• For 2025-2028, there’s an additional $6,000 deduction for taxpayers 65 years and older, although there is a phaseout for those with modified adjusted gross incomes exceeding $75,000 for single filers or over $150,000 for married filers.

Here are some tips for your year-end consideration.

Embracing Flexibility

The lower tax brackets that were due to expire this year led some financial professionals to suggest their clients accelerate taking income — the taking of a distribution from a taxable account or realizing income in some other way. But that advice may no longer make sense.

“With the new law, there may not be a need to accelerate taking income, and taxpayers now have a lot more flexibility,” said Lt. Col. Amy King, USA (Ret), CFP®, who works with veterans and federal employees at her firm, Instar Financial Planning. “They might decide to spread it out over a few years.”

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The lower brackets also may impact choices made by servicemembers who are due to receive a bonus or expecting continuation pay via the Blended Retirement System, added King, who is also a Premium MOAA member. These servicemembers can choose between a lump sum or equal installments.

Roth Conversions

Since there’s no urgency to taking income, those who had planned to execute a Roth conversion this year — where assets are moved from traditional retirement plans into Roth accounts, and taxes are paid on the converted funds — might consider waiting.

A delay makes even more sense given the Thrift Savings Plan will allow in-plan Roth conversions for the first time beginning in January 2026.

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Keep an Eye on ‘Backdoor’ Contributions

The new legislation did not do away with the popular tax strategy known as “backdoor Roth,” which allows taxpayers to make contributions to a Roth IRA even though their modified adjusted gross income is above the income limit.

Contributions using this strategy must be made by the end of the calendar year.

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Reconsider Charitable Contributions

The increased standard deduction makes it even more difficult to itemize deductions.

For the charitable-minded, “it may be more tax-efficient to give through a qualified charitable distribution or donate appreciated positions from a taxable brokerage account than to donate cash,” King said.

Since qualified charitable distributions can lower taxable income, not only could you end up with a lower tax bill, but you could also reduce or even avoid the income-related monthly adjustment amount — a surcharge on Medicare premiums levied on beneficiaries with higher incomes.

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To fully understand how these and other tax-law changes could affect your 2026 finances, consider consulting a fee-only financial planner or tax professional.