Year-end financial moves to help prepare for 2027

As the calendar turns toward year-end, financial planning becomes especially important. New legislation, including the One Big Beautiful Bill Act (OBBBA), also called the Working Families Tax Cuts, together with continuing SECURE 2.0 changes, has introduced fresh opportunities and questions for individuals and families. With interest rates shifting and markets remaining unpredictable, this is a good time to review your financial approach and get ready for what comes next.

Michelle Slawny, director of wealth planning at Associated Bank, says taking action early can help people make better choices before important deadlines arrive. “The more proactive you are, the more flexibility and confidence you’ll have moving into 2027,” she says. Evaluating options sooner can create more room to improve tax planning, retirement savings and broader wealth strategies.

Tax planning should be near the top of the list. OBBBA made several adjustments that could influence financial decisions, including a larger deduction for adults age 65 and older, broader SALT deduction opportunities and revised charitable giving rules. The federal estate and gift tax exemption also rose to $15 million per individual, opening new possibilities for wealth transfer planning and family legacy conversations.

Slawny also advises reviewing income before the year ends. “I always encourage people to get an idea of what their income looks like year to date and if they anticipate being in a lower tax bracket before December 31,” she explains. Looking over income, deductions and retirement account options before the year closes may reveal useful planning opportunities.

Wisconsin retirees may have another tax break to consider. Residents age 67 and older may qualify for an additional deduction of up to $24,000 of qualifying retirement income per person, or up to $48,000 for married couples filing jointly when both spouses qualify. That can reduce state income taxes on retirement income and should be part of year-end planning.

It is also a good time to make sure tax-advantaged accounts are fully funded. For many investors, maximizing 401(k), IRA and HSA contributions can deliver both immediate tax benefits and long-term growth potential. SECURE 2.0 also raised catch-up contribution limits for people ages 60 to 63 and added new Roth catch-up requirements for certain higher-income employees, making retirement plan reviews especially important.

Investors should also use this period to reassess portfolios. Strong market performance may have pushed allocations away from their intended targets, increasing risk exposure. Rebalancing can help bring investments back in line with long-term goals while also providing a chance to review diversification, concentrated holdings and overall portfolio risk.

“If people have not been rebalancing, that might mean the stock portion of their account is a little overweighted,” Slawny says. A disciplined review can help keep investment strategies aligned with both goals and risk tolerance.

Effective year-end planning is about more than completing a checklist. It is a chance to look at the full financial picture and make sure every part of the strategy supports long-term goals. As Slawny puts it, “Ultimately, it’s a combination of having that plan and having the road map to get you there.” With major legislative changes shaping financial decisions, acting now can help position you for greater confidence, flexibility and financial well-being in 2027.

About the Guest Author

Michelle Slawny Director of Private Wealth Planning, Associated Bank Private Wealth

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Associated Bank and Associated Bank Private Wealth are marketing names Associated Banc-Corp (AB-C) uses for products and services offered by its affiliates. Securities and investment advisory services are offered by Associated Investment Services, Inc. (AIS), member FINRA/SIPC; insurance products are offered by licensed agents of AIS; deposit and loan products and services are offered through Associated Bank, N.A. (ABNA); investment management, fiduciary, administrative and planning services are offered through Associated Trust Company, N.A. (ATC); and Kellogg Asset Management, LLC® (KAM) provides investment management services to AB-C affiliates. AIS, ABNA, ATC, and KAM are all direct or indirect, wholly-owned subsidiaries of AB-C. AB-C and its affiliates do not provide tax, legal or accounting advice. Please consult with your advisors regarding your individual situation. (1024)

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