Windsor Wealth Management LLC

Investment service in Topsfield, Massachusetts

Taxes

5 Financial Tasks to Tackle Before Fall

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As summer winds down, it’s a good time to take a few minutes to review your finances before the busy fall season begins.

Here are five areas worth checking now.

Image Source: ChatGPT

#1—Plan for Age 18

If your child or grandchild is turning 18 or heading off to college, make sure they have the legal documents that allow you to help them if there’s a medical emergency.

Overall, it’s a good idea to have:

  • HIPAA Authorization
  • Medical Power of Attorney
  • Living Will
  • Durable Power of Attorney

Related Post: Turning Age 18 Legalities & Grandchild College Planning

Also, if your student is living on or off campus, consider whether renter’s insurance makes sense. Replacing specialized computer equipment can be costly. The same goes for e-bikes, which many students use to get around campus and can cost thousands to replace.

Note: While your homeowners policy may cover some losses in a dorm, e-bikes and high-value tech often require special endorsements or separate policies.

Finally, if you’re using a 529 plan, coordinate your withdrawals carefully. Using the same education expenses for both a 529 withdrawal and an education tax credit can lead to unexpected tax consequences.

Fidelity does a nice job explaining it here: How to spend from a 529 college plan1

#2—Get Ready for Open Enrollment (Medicare & Employer)

Open enrollment season is just around the corner.

Medicare’s Annual Enrollment Period runs from October 15—December 7, and many employers hold open enrollment in the fall.

Before finalizing your benefits, consider the following:

Health Insurance Coverage: Compare plan costs, deductibles, provider networks and out-of-pocket maximums to determine whether your current plan is still the best fit.

Prescription Drug Coverage: Make sure your medications are still covered and compare costs if your prescriptions or health needs have changed.

Health Savings Account (HSA) Contributions: If you’re eligible for an HSA, review your contribution amount during open enrollment. HSAs offer triple tax advantages, including tax-deductible contributions, tax-deferred growth and tax-free withdrawals for qualified medical expenses.

Flexible Spending Accounts (FSAs): Estimate next year’s eligible healthcare or dependent care expenses so you can elect an appropriate contribution amount.

Life and Disability Insurance: Review your coverage after major life events (e.g., birth, divorce or marriage). If your employer allows you to increase coverage without a medical exam during open enrollment, consider whether additional protection makes sense before your health changes.

Retirement Plan Contributions: Increase your contribution rate if you’re receiving a raise or bonus. Also, make sure you’re contributing enough to receive your full employer match.

Are you turning age 65 soon?

Your Medicare initial enrollment timeline is different from the annual enrollment period.

Most people can enroll in Medicare beginning three months before the month you turn 65 and continuing for three months afterward.

However, if you’re still covered by an employer health plan, different rules may apply.

Give us a call before you enroll, so we can help you sort through your options.

RESOURCE: Here’s our detailed Medicare guide describing initial enrollment timelines, premiums and deductibles for 2026.

#3—Review Your Taxes and Retirement Savings

Now is a great time to see whether you’re on track.

Review your paycheck withholdings to help avoid an unexpected tax bill or an unnecessarily large refund next spring. Also, check your retirement plan contributions to see if you’re on pace to maximize your 401(k), 403(b), etc. before year-end.

Keep in mind, if you’re age 50 or older and make catch-up contributions, be aware that recent law changes may require higher earners to make catch-up contributions on a Roth (after-tax) basis.

#4—Update Your Homeowners Insurance

Have you remodeled your kitchen, finished a basement or added a garage?

Major home improvements can increase the cost to rebuild your home. If you’ve completed significant renovations, review your homeowners insurance to help ensure your coverage keeps pace with your home’s current value.

Also, if you’ve added a pool, consider adding an umbrella policy.

#5—Plan Ahead for Holiday Spending

It may feel early, but the holiday shopping season will be here before you know it.

Therefore, take a few minutes now to decide how much you want to spend on gifts, travel and entertaining.

Setting a budget early can help reduce financial stress and prevent overspending later in the year.

If you have any questions, please reach out.

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Source:

1) Fidelity.com, How to spend from a 529 college plan, https://www.fidelity.com/learning-center/personal-finance/college-planning/college-529-spending

Tax Planning During Your 50s & 60s

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There are certain moments in life when tax planning becomes especially important. If you’re in your 50s or 60s, this is one of them.

Retirement isn’t simply the end of a career; it’s a transition to a new way of generating income.

While many people spend decades building their retirement savings, fewer spend time planning how to withdraw the assets tax-efficiently.

Image Source: ChatGPT

This is important because:

  • Your tax return may look very different in retirement.
  • Your sources of income begin to change.
  • You may have years when you’re temporarily in a lower tax bracket.

These changes can create valuable financial planning opportunities.

Here are three key retirement tax planning opportunities, followed by a short roundup of other areas to optimize.

#1—Roth Conversions

A Roth conversion allows you to move money from a traditional IRA into a Roth IRA.

You pay income taxes on the amount you convert today, but qualified withdrawals from the Roth IRA are tax-free in the future.

Key benefits include:

  • Creating a source of tax-free retirement income, enabling greater flexibility when managing withdrawals.
  • Filling up a lower tax bracket. (Converting just enough money to maximize today’s low tax rate without pushing yourself into a higher one.)
  • Paying taxes now to reduce taxes later.

Also, a Roth conversion typically creates a more tax-efficient inheritance for your heirs.

You pay the taxes today, allowing your beneficiaries to receive tax-free withdrawals from an inherited Roth IRA, assuming the Roth rules are met. By comparison, withdrawals from an inherited traditional IRA or 401(k) are generally taxable as ordinary income.1

Roth conversions need to be modeled extensively, since they can increase your modified adjusted gross income. We use two software tools for Roth conversion planning, including Holistiplan and Income Lab.

Reach out if you’d like to model some scenarios.

Keep in mind, Roth conversions can often take years to reach a breakeven point.

#2—Social Security Claiming Timing

Many people think the Social Security decision comes down to one question: Should I claim early or wait?

This is important.

However, the timing of your benefits can also impact your tax strategy.

For Example:

Imagine you retire at age 64 but don’t plan to claim Social Security until age 70.

During these six years, you may have little taxable income because you’ve stopped working, haven’t started receiving Social Security and Required Minimum Distributions (RMDs) haven’t begun.

These lower-income years may create opportunities to:

  • Complete Roth conversions while you’re in a lower tax bracket.
  • Withdraw money from tax-deferred retirement accounts at lower tax rates.
  • Reposition investments before additional retirement income begins.

The key isn’t simply deciding when to claim Social Security. It’s coordinating the decision with the rest of your retirement income plan.

#3—Tax Diversification & Tax–Efficient Withdrawals

A well-diversified portfolio can help manage investment risk, while a tax-diversified portfolio can increase flexibility when it’s time to generate retirement income.

Ideally, your retirement savings are spread across three tax buckets:

  • Taxable (brokerage accounts)
  • Tax-deferred (traditional IRAs and 401(k)s)
  • Tax-free (Roth IRAs and 401(k)s)

Having assets in each of these buckets gives you more choices when generating retirement income. Instead of withdrawing from the same account every year, you can select the accounts that best fit your tax situation.

For Example:

If you realize a large capital gain (e.g., selling an investment property or appreciated investments) you may choose to rely more on tax-free Roth IRA withdrawals for this particular year rather than taking additional taxable distributions from a traditional IRA.

Over time, this flexibility may help make your retirement income strategy more tax efficient.

Related Post: Stress-Free Retirement Spending: The Investment Bucket Strategy

While Roth conversions, Social Security and tax buckets form the foundation of a solid plan, a truly tax-efficient retirement requires watching the fine print, too.

More Opportunities for Lifetime Tax Savings

Finding meaningful savings comes from looking at the whole picture and making small, coordinated moves over time.

Here are nine additional tax-planning opportunities we monitor with you to help minimize your lifetime tax liability:

Medicare IRMAA Surcharges: Manage your income levels to avoid triggering higher Medicare Part B and Part D premiums. Before recognizing a large gain or completing a Roth conversion, look at whether it could push you into a higher IRMAA bracket. Here’s our chart reflecting Medicare Parts B and D income-related adjustments.

Related Post: Medicare: The $1 Mistake that Costs $3,500.

Capital Gains Planning: Review your portfolio for opportunities to strategically harvest tax losses or realize gains to offset future liabilities.

Estate Planning & Lifetime Gifting: Consider whether it makes sense to transfer assets to children or grandchildren now to complement your broader estate and tax plan.

Stock Options & Concentrated Stock: Develop a multi-year plan for diversifying single-stock positions to manage investment risk and tax challenges.

Health Savings Accounts (HSAs): Continue funding your HSA if eligible, since it’s one of the most tax-efficient ways to save for future healthcare expenses.

Catch-Up Contributions: Maximize available catch-up contributions if you’re age 50 or older, and strategically split them between traditional and Roth accounts when applicable. See our chart for contribution limits.

Charitable Giving: Utilize Qualified Charitable Distributions (QCDs) or donate appreciated securities instead of cash to maximize the tax efficiency of your giving.

Required Minimum Distributions (RMDs): Plan ahead for future mandatory distributions well before they begin to help reduce their impact on your ordinary income.

Spouse Protection Planning: Anticipate the transition from a joint to a single tax return, which can increase tax obligations (widow’s tax) since a survivor no longer has the larger joint deduction. Maximizing Social Security to secure a higher survivor benefit, combined with early Roth conversions to reduce future taxable distributions, can help protect a surviving partner’s income down the road.

RESOURCE: Fidelity has written an excellent article explaining 4 Retirement Tax Surprises, including shifting tax brackets, surcharges, the widow’s penalty and fewer deductions.2

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Sources:

1) IRS.gov, Retirement topics-beneficiary, https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary

2) Fidelity.com, 4 retirement tax surprises, https://www.fidelity.com/learning-center/wealth-management-insights/avoid-tax-surprises-in-retirement

Bay Colony Advisors, DBA Windsor Wealth Management, is not a Certified Public Accountant and does not provide tax, legal, or accounting advice. Any tax-related information provided is for general informational purposes only and should not be construed as legal or tax advice. Each individual’s tax situation is unique, and you should consult with your own tax, financial, or legal advisors before making any decisions. We strongly recommend seeking the advice of a qualified CPA or other professional for personalized tax advice.

Quick Tax Check Before the Year Gets Away

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Earlier this month, we looked at how major life events (e.g., death, new job or retirement) impact your financial plan.

But sometimes, the most valuable planning opportunities don’t wait for a major milestone.

Instead, they build up quietly in your day-to-day tax situation.

An unexpected bonus or shifting into a new tax bracket can quietly alter your financial landscape. To help ensure you aren’t leaving money on the table, we built a quick Mid-Year Tax Checkup for you below.

Take 60 seconds to scan the checklist and see which items apply to you:

Click here to view or print a full-size version of the checklist.

If several items apply to you or if you’re unsure how they impact your situation, please reach out.

The second half of the year is a great time to make adjustments.

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Bay Colony Advisors, DBA Windsor Wealth Management, is not a Certified Public Accountant and does not provide tax, legal, or accounting advice. Any tax-related information provided is for general informational purposes only and should not be construed as legal or tax advice. Each individual’s tax situation is unique, and you should consult with your own tax, financial, or legal advisors before making any decisions. We strongly recommend seeking the advice of a qualified CPA or other professional for personalized tax advice.

2026 Tax Planning Resources & Key Financial Data

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Happy New Year!

As a new tax season begins, we’ve pulled together updates and resources you may find helpful to reference throughout the year.

Today, we discuss:

  • The SALT deduction increase and why more families will likely itemize taxes this year.
  • The new senior “bonus” deduction for individuals aged 65 and up.
  • A catch-up curveball impacting high earners.
  • The new $1,000 charitable deduction, even if you don’t itemize.
  • Why early-year QCDs create a “double” impact.
  • Deductions impacted by filing status.
  • 2025 withholdings and strategically positioning yourself for 2026.
  • Why January is a great time to adjust retirement contributions.
  • Required Minimum Distributions (RMDs).
  • Key financial facts for the 2025 and 2026 tax years, including standard deductions, retirement contribution limits, Social Security taxation, Medicare premiums and more. (2 handy handouts)

Reassess Itemizing Under the Expanded SALT Deduction

As a result of the One Big Beautiful Bill Act (OBBBA), the state and local tax (SALT) deduction cap has quadrupled to $40,000. For many, this makes itemizing a viable option again, offering potentially greater savings than the standard deduction.

(Note: This higher cap begins to phase down for households with a modified adjusted gross income (MAGI) over $500,000, eventually returning to the $10,000 limit for those earning over $600,000.)

If you:

  • Pay High State & Local Taxes
  • Own Your Home
  • Make Regular Charitable Contributions
  • Pay Mortgage Interest

…then itemizing may be a savings option for you.

EXAMPLE: See a side-by-side comparison of the standard deduction versus the new $40,000 SALT cap for married couples filing jointly in our recent post: 2025 Tax Changes: One Big Beautiful Bill Act (OBBBA)

Leverage the New Senior “Bonus” Deduction

Given the new OBBBA laws, those aged 65 and older can claim a new $6,000 senior bonus deduction ($12,000 for married couples).

This temporary benefit starts in 2025 and expires after December 31, 2028.

The full deduction is available to single filers with a MAGI up to $75,000 and married couples up to $150,000. It gradually phases out after, and is completely eliminated at incomes of $175,000 (single) and $250,000 (married).

This H&R Block article discusses the deduction in detail: New $6,000 deduction for seniors.1

Navigate the SECURE 2.0 Catch-Up Curveball

There’s a new twist for building your retirement nest egg starting in 2026.

If you earned more than $150,000 last year, the IRS now requires your “catch-up” contributions to be made as Roth (after-tax) instead of pre-tax.

While you won’t get the upfront tax break, the payoff is that this money will be tax-free when you retire, including any growth.

Finally, don’t forget about the “Super Catch-Up.” If you’re aged 60, 61, 62 or 63, you’ve hit a special four-year window that allows you to contribute a much higher limit of $11,250 to your 401(k) for tax year 2025.

RESOURCE: For a deep dive, Schwab has a great guide titled: Catch-Up Contributions 2025 and 2026. It breaks down these numbers and the new Roth requirement in detail.2

Claim the New $1,000 Charitable Deduction (No Itemizing Required)

You can deduct up to $1,000 (single filers) or $2,000 (married couples filing jointly) for cash donations to qualified charities, even if you take the standard deduction, starting in tax year 2026.

For tax purposes, “cash” includes donations made by check, credit card or electronic transfer—not property (e.g., clothing, furniture) or securities.

Accelerate Impact with Earlier QCDs

Qualified Charitable Distributions (QCDs) are an efficient way to manage RMD-related taxes.

By donating directly from your IRA, you can reduce taxable income, satisfy RMD requirements and support causes you care about.

However, timing matters.

Because of how the IRS applies annual distribution ordering, any IRA withdrawals taken before a QCD count as taxable income and are applied toward your RMD first. That leaves less room for a tax-free QCD later in the year.

For Example:

If your total RMD for the year is $150,000 and you withdraw $150,000 for personal use in February, this entire amount is taxable. Even if you make a $25,000 donation to charity in October, you cannot “swap” the two; the February cash has already satisfied your RMD with taxable dollars.

Instead, by prioritizing QCDs earlier in the year, you help ensure these first dollars go directly to charity, rather than accidentally triggering taxable income through personal withdrawals.

This approach also helps avoid year-end processing delays and gets your charitable dollars working sooner.

Verify Your Filing Status

Life changes often drive tax outcomes.

Marriage, divorce, the loss of a spouse, or a dependent aging out could impact your:

  • Standard Deduction
  • Tax Brackets
  • Eligibility for Credits and Deductions

A solid understanding of your filing status is critical in order to optimize your tax situation.

Fine-Tune 2025 Withholdings for 2026

Your tax return doesn’t just close the books on 2025; it informs smarter decisions for 2026.

Reviewing withholdings now helps you:

  • Avoid Surprises Next April
  • Align Tax Payments with Actual Income
  • Adjust for Bonuses, Side Income and Retirement Distributions

Overall, reviewing your withholdings now is especially important if your 2025 income fluctuated more than expected.

Optimize Retirement Contributions Early

January is the ideal time to revisit retirement contributions.

Increasing them early spreads savings evenly across the year, reduces decision fatigue and helps keep your financial plan on track automatically.

At the same time, if your income came in higher than expected in 2025, confirm you didn’t exceed contribution limits. Remember, over-contributions can trigger avoidable penalties, but they’re much easier to fix when caught early.

Prepare for Required Minimum Distributions (RMDs)

If you take RMDs—or will for the first time—this deserves early attention.

Taking RMDs increases your taxable income, which can:

  • Push You into a Higher Tax Bracket
  • Increase Medicare Premiums
  • Trigger Social Security Benefits Taxation

Also, if this is your first RMD year, timing matters.

Delays can result in two RMDs landing in the same tax year, increasing taxable income.

Download 2025 & 2026 Key Financial Data (Handouts)

To make your life easier, we have two handy spreadsheets highlighting key numbers you’ll likely need throughout the year.

They include:

  • Standard Deductions by Filing Status
  • Retirement Plan Contribution Limits
  • Educational Credits and Deductions
  • Medicare-Related Thresholds
  • Health Savings Account (HSA) Limits*
  • Capital Gains and Dividend Tax Rates
  • Social Security Taxation Thresholds
  • Tax Deadlines

*When possible, max-out this contribution, given its triple tax benefit: tax-deductible contributions, tax-free growth, tax-free qualified withdrawals.

Here are the handouts:

2025 Key Financial Facts — What to Know This Tax Season

2026 Key Financial Facts — Planning Ahead

If you’d like hard copies, please let us know. We’re happy to mail them to you, or you’re welcome to stop in. We’d love to see you!

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Sources:

1: H&R Block, New $6,000 deduction for seniors, hrblock.com/tax-center/irs/tax-law-and-policy/one-big-beautiful-bill-senior-tax-deduction

2: Charles Schwab, Catch-Up Contributions 2025 and 2026, https://www.schwab.com/learn/story/what-to-know-about-catch-up-contributions

Bay Colony Advisors, DBA Windsor Wealth Management, is not a Certified Public Accountant and does not provide tax, legal, or accounting advice. Any tax-related information provided is for general informational purposes only and should not be construed as legal or tax advice. Each individual’s tax situation is unique, and you should consult with your own tax, financial, or legal advisors before making any decisions. We strongly recommend seeking the advice of a qualified CPA or other professional for personalized tax advice.

5 Financial Moves to Make Before Year-End

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Fall brings more than changing leaves. It’s also an ideal time to revisit your financial plan before the holiday rush begins.

By making a few smart updates now, you can take advantage of valuable year-end opportunities and set yourself up for a strong start to the new year.

Let’s look at five key moves to consider:

#1—Revisit Retirement Plan Contributions

Now’s a great time to revisit your retirement plan contributions.

Even a small bump can make a big difference down the road. Plus, if your employer offers a match, that’s essentially free money. Also, consider directing a portion of any bonus or raise to your retirement accounts.

And don’t forget the power of compounding—it’s what turns small, consistent contributions into meaningful long-term growth.

Learn more in our post: Maintaining Retirement Lifestyles: Compound Interest’s Role

#2—Review Major Life Changes

If you’ve experienced any major life event, please contact us as soon as possible, including:

Employment Changes: New job, raise or retirement coming up? Let’s review your benefits, income, health insurance and tax withholdings. If you’re retiring soon, we’ll also help you determine whether your life insurance is portable and if you still need it.

Family Changes: Marriage, divorce, a new child or caregiving responsibilities? These often require adjustments to estate plans and insurance coverage.

Selling, Buying or Inheriting: Transactions like selling a home or receiving an inheritance can impact your taxes. Be sure to review your 2025 withholdings and be prepared for any capital gains or losses.

#3—Recognize OBBBA Impact

Tax laws changed earlier this year with the introduction of the new One Big Beautiful Bill Act (OBBBA).

One key benefit (the Senior Bonus Deduction) is for those age 65 and older.1

It’s a new “bonus” deduction, including $6,000 for qualifying individuals and $12,000 for qualifying couples. This benefit is in addition to the standard deduction. It’s available to both itemizers and non-itemizers but begins to phase out once income exceeds $75,000 for individuals or $150,000 for couples. This bonus deduction is temporary, and is effective for tax years 2025-2028.

Here are two resources on our website describing key takeaways from OBBBA:

#1—2025 Tax Changes: One Big Beautiful Bill Act (OBBBA) (Includes a “SALT Deduction Savings Example” highlighting how the higher SALT deduction cap now allows many households to deduct more of their state and local taxes than in previous years—and how you may save more by itemizing rather than taking the standard deduction this year.)

#2—Key Financial Data spreadsheet (Includes updated 2025 tax brackets, standard deductions, child tax credit and more.)

If you’d like, we can run year-end tax modeling to show how these changes may affect you.

Our Holistiplan tax software helps us forecast your taxes, model different scenarios, and identify opportunities such as Roth conversions or itemizing under the new, higher SALT deduction cap.

#4—Prepare for Year-End Charitable Giving

If you’re planning to give before year-end, start now to maximize your impact and tax benefits.

Consider using some of the following tax-smart strategies. We’re happy to help you decide which ones fit best.

Appreciated Assets: Donating stocks or mutual funds that have grown in value enables you to deduct their fair market value and avoid capital gains tax.

Donor-Advised Funds (DAFs): Gain an immediate tax deduction by making a contribution now, and enjoy the flexibility of distributing the funds to your favorite charities over time. This is a powerful tool for managing multi-year giving.

[RESOURCE]: Fidelity does a great job explaining what DAFs are, and you can take a quick quiz to see if this resource may work for you (or call us).2

Matching Gifts: Ask your employer if they’ll match your donation.

Qualified Charitable Distributions (QCDs): If you’re 70½ or older, you can donate directly from your IRA to help reduce Required Minimum Distributions (RMDs).

#5— Manage Income to Avoid Future Medicare Surcharges

When managing your 2025 taxes, it’s important to keep IRMAA (Income-Related Monthly Adjustment Amount) for Medicare on your radar.

IRMAA surcharges are based on your modified adjusted gross income (MAGI) from two years prior, meaning your 2025 income will determine what you pay for Medicare premiums in 2027.

Strategic tax planning can help you stay below key IRMAA thresholds by managing income sources such as Roth conversions, capital gains and RMDs. Timing these activities (especially toward year-end) can help reduce future surcharges and keep your overall retirement healthcare costs in check.

Medicare Resources Available on Our Website:

Will I avoid IRMAA surcharges on Medicare Parts B & D?

Medicare Premiums and Deductibles for 2025

BONUS MOVES: Other Tax & Retirement Savings Strategies

  • Roth Accounts: Consider whether shifting from a traditional 401(k) or IRA to a Roth option makes sense given your tax outlook. Remember, withdrawals in retirement from Roth accounts are tax-free, creating flexibility later on (e.g., reducing taxable income in years when you draw more from other sources).
  • Health Savings Account (HSA): If you’re eligible, consider maxing out your contributions. HSAs offer a triple tax advantage; specifically, contributions are tax-deductible, grow tax-deferred and can be withdrawn tax-free for qualified medical expenses. For example, a family contributing the 2025 maximum of $8,550 could reduce taxable income by that same amount, and individuals age 55 and older can add an extra $1,000 catch-up contribution. To qualify for an HSA, you must be enrolled in a High Deductible Health Plan (HDHP).
  • Tax-Loss Harvesting: Even with markets trending higher, we continue to look for tax-loss harvesting opportunities where appropriate to help offset gains and improve your after-tax returns. Keep in mind, if you have other accounts that we don’t manage, be sure to coordinate with us so you achieve maximum impact.

Quick Reminder

Many of the federal energy home improvement credits expire on Dec. 31, 2025. If you’re planning to replace your front door, add better attic insulation or similar, consider doing it now to take advantage of the credits.

Please reach out with any questions.

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Sources:

1: IRS.gov, One, Big, Beautiful Bill Act: Tax deductions for working Americans and seniors, https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors

2: Fidelity, What is a donor-advised fund (DAF)?, https://www.fidelitycharitable.org/guidance/philanthropy/what-is-a-donor-advised-fund.html

Bay Colony Advisors, DBA Windsor Wealth Management, is not a Certified Public Accountant and does not provide tax, legal, or accounting advice. Any tax-related information provided is for general informational purposes only and should not be construed as legal or tax advice. Each individual’s tax situation is unique, and you should consult with your own tax, financial, or legal advisors before making any decisions. We strongly recommend seeking the advice of a qualified CPA or other professional for personalized tax advice.

2025 Tax Changes: One Big Beautiful Bill Act (OBBBA)

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Just a quick update about some recent tax law changes, some will likely impact you.

President Trump signed the One Big Beautiful Bill Act (OBBBA) on July 4. The Act primarily extends and replaces the expiring 2017 Tax Cuts and Jobs Act (TCJA).

Among all the changes, one really stood out: a major increase to the cap on State and Local Tax (SALT) deductions.

Starting in 2025, the SALT deduction cap will increase from $10,000 to $40,000 for households earning under $500,000. For higher incomes, this cap gradually gets smaller.

(Note): The higher cap, which is effective until the end of 2029, will revert to $10,000 starting in 2030.1

SALT Deduction “Savings” Example

The higher SALT deduction means some taxpayers may save more money by itemizing their taxes this year versus taking the standard deduction.

Here’s an example…

Assumptions:

  • Married Filing Jointly
  • Adjusted Gross Income (AGI): $300,000
  • SALT Paid: $35,000 (including property and state income tax)
  • Other Itemized Deductions: $7,000 (e.g., charitable giving and modest or no mortgage interest, common for many pre-retirees and retirees with paid-down loans)

This example shows how the increased SALT deduction can shift a married couple’s advantage, enabling them to itemize for an extra $10,500 in deductions, leading to an estimated $2,520 in tax savings compared to the prior 2024 standard deduction rules.

Temporary Deductions

The Act also introduces several new temporary deductions for 2025-2028, including:

  • A $6,000 deduction for single filers ($12,000 for joint filers) for those aged 65+.

  • Up to $25,000 for tips; and overtime wages ($12,500 for single filers, $25,000 joint filers). Note, payroll taxes still apply.

  • Up to $10,000 for qualifying auto loan interest on new, U.S.-assembled vehicles.

Keep in mind, the above deductions are subject to income phase-outs and other restrictions.2

Other Key OBBBA Highlights:

Permanent Tax Cuts: Many TCJA provisions are now permanent, including the existing individual income tax brackets (10%, 12%, 22%, 24%, 32%, 35% and 37%), and the increased standard deduction, now $15,750 for single filers, $23,625 for heads of household and $31,500 for joint filers, for 2025.

Child Tax Credit: The Child Tax Credit is permanently increased to $2,200 beginning in 2025, and will be indexed for inflation beginning in 2026.3

[Deep Dive Resource]: For an OBBBA deep (deep) dive, read Breaking Down The One Big Beautiful Bill Act: Impact Of New Laws On Tax Planning.

These are significant tax changes, and we’ve only scratched the surface. To see how they might impact you using our tax modeling software, please reach out.

It will be an exciting tax season for sure!

–David Bunker, Financial Advisor & Licensed Fiduciary

P.S…Our Key Financial Data spreadsheet is now updated with the OBBBA changes, including 2025 tax brackets, standard deductions, child tax credit and much more.

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Source:

1, 2, 3: Kitces.com, Breaking Down The “One Big Beautiful Bill Act”: Impact Of New Laws On Tax Planning. https://www.kitces.com/blog/obbba-one-big-beautiful-bill-act-tax-planning-salt-cap-senior-deduction-qbi-deduction-tax-cut-and-jobs-act-tcja-amt-trump-accounts/

Bay Colony Advisors, DBA Windsor Wealth Management, is not a Certified Public Accountant and does not provide tax, legal, or accounting advice. Any tax-related information provided is for general informational purposes only and should not be construed as legal or tax advice. Each individual’s tax situation is unique, and you should consult with your own tax, financial, or legal advisors before making any decisions. We strongly recommend seeking the advice of a qualified CPA or other professional for personalized tax advice.

Home Energy Audits and Energy Tax Credits

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Is your home leaking money?

Wealth isn’t just about accumulation; it’s about being intentional with your resources.

Optimizing your home’s energy efficiency is a prime example.

Just as we seek to help maximize your financial returns, you can maximize your home’s comfort and value, while also leveraging energy credits to lower your taxes.

Are your cooling and heating systems energy efficient?

Our goal today, is to help you:

– Discover hidden savings via a professional home energy audit.

– Reduce taxes by leveraging energy credits.

– Understand two key 2025 energy tax credit changes.

– Increase awareness of energy-efficiency scams.

Useful Home Energy Audits

A good energy audit includes a detailed report of where your home is losing energy, and what you can do to fix it.  

The first step, is finding a certified energy auditor. Specifically, a professional who’ll provide you unbiased information and isn’t selling products.

Finding a Reputable Auditor

The U.S. Department of Energy recognizes about 10 home energy auditor qualified certification programs for the Energy Efficient Home Improvement Credit.

To find certified professionals near you, try the Building Performance Institute (BPI) locator. Keep in mind, BPI is just one locator option.

Ideally, select an auditor that doesn’t perform repairs. This helps ensure less bias results.

Related…

Mass Save® is a collaboration of Massachusetts utilities that offer home energy assessments (at no cost), rebates and incentives to help you reduce your energy costs.

Incentive Example:

The Mass Save HEAT Loan offers 0% financing for eligible energy-efficient upgrades. Starting January 1, 2025, you can finance up to $25,000. The financing covers a range of improvements, including insulation, heat pumps, batteries and more.

Most states offer energy-efficiency programs, supported by state, utility and federal incentives, including New Hampshire.

Therefore, before upgrading any cooling or heating system, or replacing any appliance, be sure to check for available rebates and incentives.

Pinpointing where your home loses the most energy will help you prioritize repairs and maximize IRS home energy credits.

Resource: Here’s a helpful chart listing what to expect an auditor to have for tools, (e.g., combustion analyzer, infrared camera, digital probe thermometer, etc.) and what the audit entails.

Finally, watch out for unsolicited “free” energy audit offers. Some companies use these to push you into buying things you don’t need. Always double check who the auditor works for and get a few different opinions before agreeing to any work or signing on the dotted line.

Home Energy Tax Credits & Key 2025 Changes

The Energy Efficient Home Improvement Credit is available for qualifying home improvements made from January 1, 2023 through 2032. To qualify for these credits, generally the improvements must be for your primary residence and use only new materials and systems.

2 Key Changes:

There have been two key changes to the program starting in 2025, including:

#1—Energy-efficient products eligible for the credit need to be manufactured by “qualified” manufacturers.

The IRS is establishing a program to certify manufacturers whose products meet specific energy efficiency standards. This requirement helps ensure the products receiving tax credits are genuinely contributing to energy savings.

#2—When claiming the credit, you must provide the Product Identification Number (PIN) for the qualifying items on your tax return.

Basically, the PIN is a unique ID the IRS uses to ensure the product meets standards, comes from a legit company and matches your credit claim.

Watch Out for Energy-Efficiency Scams

The number of U.S. solar installations is expected to double by 2030, according to the Solar Energy Industries Association®.

Therefore, it’s not surprising we’re seeing increases in solar scams.

The U.S. Treasury describes popular solar scams in their article, Consumer Solar Awareness. (It also talks about buying vs. leasing solar power systems.)

The article highlights several scam tactics, including:

– Sales pitches saying, “This is a government program” to make you think a solar installation is free or government-endorsed.

– Promises of free solar panels and limited-time offers and other pressure tactics urging you to sign up without examining the details.

– Promises of tax credits even though you owe no taxes or promises that the government will send you a tax rebate check in the mail.

Overall, solar panels may be a good option to lower your energy costs, but take your time when evaluating your options.

Buyer Beware: In general, if something is unsolicited, creates a sense of urgency, demands immediate or unusual payment, or sounds too good to be true—assume it’s a scam.

[Related]: Since the weather is getting warmer, watch out for paving scams.

Helpful Tips: No matter if you’re buying a new home or an appliance, be sure to look for the Energy Star mark. Keep in mind, the Energy Star isn’t always the only requirement for tax credits. But, it’s a good indicator of energy efficiency and, therefore, a good place to start.

Finally, don’t forget about Consumer Reports, a nonprofit organization that provides unbiased testing and ratings of products and services, (e.g., new A/C, refrigerator, smart thermostat, etc.). You can often access their reports online for free with most library memberships.

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Bay Colony Advisors, DBA Windsor Wealth Management, is not a Certified Public Accountant and does not provide tax, legal, or accounting advice. Any tax-related information provided is for general informational purposes only and should not be construed as legal or tax advice. Each individual’s tax situation is unique, and you should consult with your own tax, financial, or legal advisors before making any decisions. We strongly recommend seeking the advice of a qualified CPA or other professional for personalized tax advice.

2025 Tax Planning Resources & Key Financial Data Spreadsheet

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Happy New Year!

As we kick off a new year, it’s time to turn our attention to the upcoming tax season.

This post is intended as a year-long resource, so keep it handy.

2025-Tax-Planning-Resources

2025 Tax Planning Resources

Today, we discuss:

  • 2025 key financial data, including tax brackets, retirement plan distribution limits, Medicare premiums, standard deductions, child tax credit, and more. (Summarized in an organized spreadsheet.)
  • Changes in the IRS 2025 retirement contribution limits and a new “super” catch-up contribution for those aged 60-63.
  • Using QCDs earlier in the year.
  • The HSA’s triple tax benefits.
  • Why income taxes “may” increase in 2026.

2025 Key Financial Data (Useful Spreadsheet)

Keep this spreadsheet (links to our website) handy throughout the year. (Updated post President Trump signing the One Big Beautiful Bill Act (OBBBA) on July 4, 2025.)

Within it, you’ll find 2025 tax brackets, retirement plan distribution limits, Medicare premiums, standard deductions, child tax and education credits, tax rates for long-term capital gains and qualified dividends, tax on Social Security benefits, and much more.

If you’d like a quality hard copy, let us know. We’re happy to mail one to you or feel free to stop in.

IRS 2025 Contribution Limit Changes & New “Super” Catch-Up Contribution

We encourage maximizing your retirement savings contributions. If you’re unsure how, reach out. Let’s explore strategies to increase your savings.

401(k), 403(b), 457, TSP & SIMPLE IRAs Limits:

General Limit: $23,500 (401(k), etc.)

General Limit SIMPLE IRA: $17,600 (< 26 employees) or $16,500 (> 26 employees)

Age 50+ Catch-Up: $7,500 most plans; $3,500 (SIMPLE IRAs)

Ages 60-63 “Super” Catch-Up: $11,250 most plans; $5,250 (SIMPLE IRAs)

Traditional & Roth IRAs:

General Limit: $7,000

Age 50+ Catch-Up: $1,000

Key Change: The “super” catch-up contribution allows individuals aged 60-63 to increase their retirement savings by contributing more (generally $11,250) to their employer-sponsored retirement plans.

Use QCDs Earlier in the Year

With a Qualified Charitable Distribution (QCD), you can transfer up to $100,000 directly from your IRA to a charity tax-free. It’s often beneficial to take your QCDs before your Required Minimum Distributions (RMDs), since it can lower your taxable income.

Here’s how it works:

RMD: Let’s say your RMD is $20,000.

Donation: You donate $3,000 to charities directly from your IRA.

Deduction: This $3,000 is deducted from your $20,000 RMD.

Taxable Amount: You only pay taxes on the remaining $17,000.

There are other benefits to using QCDs earlier in the year, including avoiding potential delays that can sometimes occur during the busy year-end season.

Also, if you have a charity in mind, making your QCD early in the year provides the charity with the funds sooner, putting your donation to work faster.

Important Note: When using Fidelity for a QCD, you won’t receive a tax form. To claim the tax deduction, you’ll need to inform your tax advisor.

At Windsor Wealth Management, we regularly facilitate QCDs for our clients, and we’re happy to engage with your accountant.

HSA: Triple Tax Benefits

Health Savings Accounts (HSAs), offer several tax benefits to help you save money on health care costs.

Keep in mind, HSAs are only available to individuals enrolled in a high-deductible health plan, have no other health care coverage, and are not enrolled in Medicare or claimed as a dependent.

Here are the triple tax benefits:

#1—Tax-Deductible Contributions: The money you contribute to an HSA is tax-deductible, meaning it reduces your taxable income, which can lead to tax savings in the present.

#2—Tax-Free Growth: Any investment earnings your HSA accumulates grow tax-free, allowing your savings to potentially build up more quickly over time.

#3—Tax-Free Withdrawals: When you use your HSA funds to pay for qualified medical expenses, such as doctor’s visits, prescription drugs or hospital stays, the withdrawals are tax-free.

Also, HSAs have no “use it or lose it” rule. The funds can roll over indefinitely from year to year. (Whereas, unused funds in a Flexible Spending Account (FSA) are typically forfeited at the end of the plan year.)

For 2025, HSA contribution limits are:

Self-only: $4,300

Family: $8,550

Individuals aged 55 and older can make an additional $1,000 catch-up contribution.

Income Taxes May Increase in 2026

The Tax Cuts and Jobs Act (TCJA) is a tax law passed in 2017 that made significant changes to the US tax code.

Many of the individual tax cuts under the TCJA are set to expire at the end of 2025. If Congress doesn’t extend these provisions, income tax rates for many Americans could increase starting in 2026.

Under the TCJA, marginal tax rates are 10%, 12%, 22%, 24%, 32%, 35% and 37%.

If the TCJA expires on 12/31/25, then marginal tax rates will revert to their permanent pre-TCJA levels of 10%, 15%, 25%, 28%, 33%, 35% and 39.6%, according to a Congressional Research Service report.

Want to see how the potential expiration of the TCJA might affect your taxes?

Our software can illustrate the potential tax implications of different income levels.

Contact us if you’d like to see how your tax burden could change under various circumstances.

Quick Look: 2024 Market Performance

In short, 2024 was a great year for the stock market, with the S&P 500 finishing up 25.02% for the year, and 3% in the last quarter.

Communication services and big tech led the way, consistently outperforming the rest of the market, largely due to the rise of artificial intelligence. Compared to 2023, there was broader market participation in 2024, with sectors beyond communication services and big tech contributing more evenly to the market’s growth.

Looking ahead to 2025, company valuations are high, so we may not see as strong a year.

Fidelity does a nice job recapping 2024 in their article, 2024 Stock Market Report. It’s an easy read too.

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Bay Colony Advisors, DBA Windsor Wealth Management, is not a Certified Public Accountant and does not provide tax, legal, or accounting advice. Any tax-related information provided is for general informational purposes only and should not be construed as legal or tax advice. Each individual’s tax situation is unique, and you should consult with your own tax, financial, or legal advisors before making any decisions. We strongly recommend seeking the advice of a qualified CPA or other professional for personalized tax advice.