JNBA requests your 2025 tax returns to provide well-rounded and accurate financial planning advice. If you have not previously signed a Tax Professional Authorization form, please send a copy of your final 2025 tax return to your JNBA Advisory Team or upload your tax return to your JNBA Client Portal.
IRA Contributions
To make the April 15, 2026 deadline for IRA contributions, contribution checks (made payable to Charles Schwab with “2025 contribution” written in the memo line) should arrive at our office no later than April 10, 2026.
- You have until the tax filing deadline (April 15, 2026) or the date you file your tax return (whichever comes first) to finalize IRA contributions for 2025.
- If you need to confirm your IRA contributions already made for 2025 to determine if any additional contribution can be made or are considering moving money from a non-IRA account to an IRA for your 2025 contribution, remember to allow time for processing to meet the April 15, 2026 deadline.
SIMPLE IRA DEFERRAL Updates
Some SIMPLE plans are allowed higher deferral limits. Participants in certain SIMPLE 401(k) and SIMPLE IRA plans can take advantage of an increased deferral limit of $17,600 and an increased catch-up limit of $3,850 (both unchanged from 2025) if their employer meets one of the following conditions:
- Has 25 or fewer employees receiving at least $5,000 of compensation, or
- Employs more than 25 but not more than 100 employees and makes either a 4% matching contribution or a 3% nonelective contribution
QCD – Qualified Charitable Distribution
If you are over the age of 70 ½ and gave money from your IRA directly to a charitable organization, please share those distribution details with your tax professional. The 1099-R generated for your IRA shows total distributions but does not include details on distributions to a qualified charitable organization. This will be important information to share as distributions to qualified 501(c)(3) charities, up to $108,000, are not taxable for 2025.
Social Security Tax
Those who worked for multiple employers in 2025 may have paid too much in Social Security tax. The maximum amount withheld by employers was $10,918.20 per taxpayer. If your Social Security withholdings exceed that maximum, you may be able to claim the excess as a credit.
Long-Term Care Insurance
If you own long-term care insurance, you may be eligible for an income tax credit for premiums paid during the 2025 tax year. Specifics vary from state to state, and you should consult your tax professional for additional information.
Minnesota Resident 529 Plan Contributions
As a Minnesota resident, you may be eligible for a Minnesota nonrefundable income tax credit or an income tax subtraction for contributions to any state’s 529 plan. The nonrefundable income tax credit is subject to phase-out. Please consult your tax professional for additional information regarding the credit or subtraction.
Health Insurance
The Affordable Care Act requires that a taxpayer and each member of his or her family has qualifying health coverage for each month of the year, qualifies for an exemption, or makes an individual shared responsibility payment when filing his or her tax returns. Like last year, those who had qualifying health coverage for the whole year will simply have to check a box stating that they are covered.
Important Employer-Provided Benefit Reminders
As you gather documents for your 2025 tax return, this is a good time to complete a thorough review of your employer-provided benefits. Look for opportunities to increase your 401(k) contributions to maximize your savings for the new tax year, confirm that the beneficiaries listed on your employer-provided benefits are still accurate, and determine if any adjustments should be made to your tax withholding. Withholding adjustments can be a good topic to discuss with your tax professional as they review your information to prepare your 2025 tax return.
Please note JNBA is neither an accountant nor an attorney and no portion of the above should be construed as accounting or legal advice. All legal and accounting issues should be addressed with a legal or accounting professional of your choosing. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from JNBA Financial Advisors, LLC. Please see important disclosure information at jnba.com/disclosures/.
