Summer may feel far from tax season, but right now is the perfect time to review your current tax strategy.
At DBHW Wealth Partners, we believe the best tax outcomes come from proactive planning—not last-minute scrambling. With half the year still ahead, there’s time to make smart adjustments that could reduce your 2025 tax bill, boost your savings, and support your bigger financial goals.
Here are a few areas you can still act on in the second half of the year:
πΈ 1. Check (and Adjust) Your Tax Withholdings
Getting a big refund or owing more than expected last year? It may be time to adjust your W-4.
Mid-year is a great time to:
Make sure your withholdings match your income and filing status
Account for changes like a new job, side income, or dependent changes
Avoid underpayment penalties or surprise bills come next April
We can help you run a tax projection, so you know where you stand.
π₯ 2. Maximize Your HSA or FSA Contributions
Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) offer a triple tax advantage—but only if you’re using them right. Both reduce your taxable income and reduce FICA taxes, averaging a 17% - 35% tax reduction on amounts contributed.
HSAs (if you have an HSA-qualified high-deductible health plan) can accumulate year-to-year and are still yours to use if you change employers or health plans.
FSAs are “use-it-or-lose-it,” so mid-year is the time to make sure you're on pace to use those funds.
2025 HSA Contribution Limits:
$4,300 for individuals
$8,550 for families
$1,000 catch-up if you’re 55+
If you’re not on track yet, consider adjusting contributions for the rest of the year.
π 3. Contribute to a 529 Plan for Education Savings
Whether you’re a parent, grandparent, or other generous relative or friend, 529 plans offer a tax-advantaged way to save for education—and some states even offer a state tax deduction or credit for contributions.
Planning tip: You can “superfund” 529s using up to 5 years’ worth of gift tax exclusions (currently $19,000/year) if you want to front-load contributions.
Even smaller, recurring contributions can make a big difference over time and may help this year’s tax picture.
β€οΈ 4. Consider Qualified Charitable Distributions (QCDs)
If you're age 70½ or older and have a traditional IRA, you can make tax-free charitable gifts directly from your IRA using a QCD.
This can satisfy all or part of your Required Minimum Distribution (RMD)
It keeps the distribution out of your taxable income
You don’t need to itemize to get the tax benefit
If you are required to take an IRA distribution and give to charity, this is a powerful strategy to maximize your dollars.
πΌ 5. Evaluate Retirement Contributions
There’s still time to increase your retirement plan contributions—whether it’s a 401(k), SIMPLE IRA, or traditional IRA.
For 401(k)s, the limit in 2025 is $23,500 ($31,000 for those 50 and older)
Traditional and Roth IRA contributions $7,000 limit ($8,000 for those 50 and older) can be made up until April 15, 2026, but increasing now can smooth out cash flow and reduce year-end pressure
This is a good time to check if you’re on pace to max out—or increase contributions if you received a raise or bonus this year.
π§ Final Thoughts: Don’t Wait Until December—or April
Many of the best tax strategies require time to implement, especially those that integrate with your investment or retirement planning. The sooner you start, the more options you have.
At DBHW Wealth Partners, we take a proactive approach to tax planning—because the real value comes before tax season. If you haven’t had a mid-year review yet, let’s schedule a time to talk about where you stand, what’s changed, and how to fine-tune your strategy for the rest of 2025.