As the holiday season approaches, you might find yourself balancing packed surgical schedules, travel, and family obligations. However, the end of the calendar year also marks a key financial checkpoint—especially when it comes to managing your taxes and investments.
This article from Surgeons® Capital Management (SCM) offers a straightforward guide to help you evaluate your financial strategy before the year closes. With 2025 nearly over and new tax changes already scheduled for 2026, a review now can help you enter January with a clear understanding.
Evaluate Your Investment Portfolio
Rebalancing
Over the course of a year, investment portfolios may have drifted away from their original allocation due to market performance. For example, if equities substantially outperformed bonds, equity allocation may now exceed your intended risk level—especially if you’re approaching retirement or planning a career transition.
Rebalancing involves selling a portion of the over-weighted investments and reallocating those funds into under-weighted asset classes. This strategy helps bring your portfolio back in line with your goals and risk tolerance. It’s also an opportunity to revisit your investment strategy and consider whether your current allocation still fits your timeline and income needs.
Tax-Loss Harvesting
Another tool to consider before December 31 is tax-loss harvesting. This involves identifying investments in your taxable accounts that have declined in value and selling them to capture a loss. Those losses can then offset capital gains earned earlier in the year.
If your losses exceed your gains, you can deduct up to $3,000 against ordinary income in 2025, with any remaining loss carried forward for future years.
Be mindful of the wash sale rule, which disallows a loss deduction if you repurchase the same or a “substantially identical” security within 30 days before or after the sale. This applies not only to taxable accounts but also to purchases made in IRAs or other tax-deferred accounts, which can inadvertently trigger the rule.
The key is to maintain your investment strategy without violating this timing window—by using alternative but not identical investments during the waiting period. When done correctly, tax-loss harvesting can improve after-tax returns while keeping your portfolio properly balanced.
Together, rebalancing and loss harvesting can provide a powerful end-of-year opportunity to fine-tune your taxable investment strategy while managing risk and potential tax exposure.
Maximize Tax-Advantaged Accounts
Retirement Contributions
Before December 31, it’s wise to verify whether you’ve taken full advantage of available retirement contributions. For employer-sponsored plans like 401(k)s and 403(b)s, the 2025 elective deferral limit is $23,500.
If you’re age 50 or older, you may contribute an additional $7,500 in catch-up contributions. For those between 60 and 63, a new special catch-up allows for an added $11,250—available only if your income is below a certain threshold and your employer plan allows it.
These contributions must be made by December 31 to count for the 2025 tax year. The same deadline applies to non-qualified deferred compensation plans, which are sometimes available to high-income professionals such as surgeons.
Self-employed surgeons may use SEP IRAs or Solo 401(k)s. The SEP IRA limit is the lesser of 25% of compensation or $70,000, and can be funded up to the April 15, 2026, tax deadline. Solo 401(k)s must be established by December 31, though funding can also occur by the tax deadline.
If you’re exploring Roth IRA strategies, they should be completed by December 31, 2025, to count for this tax year. These approaches may be beneficial for surgeons in higher tax brackets who are seeking tax-free growth, but they require close evaluation based on your income, filing status, and long-term plans.
SCM’s experienced team in wealth management for surgeons can help you assess which strategies best fit your structure and goals.
Health Savings Accounts (HSAs)
If you have a high-deductible health plan, HSAs offer a triple tax advantage: deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
For 2025, the contribution limit is $4,300 for individuals and $8,600 for families, with an additional $1,000 catch-up contribution for those age 55 and older. Contributions for 2025 can be made until April 15, 2026, but contributing before year-end may be beneficial for planning purposes.
HSAs can be especially useful for covering future healthcare expenses in retirement or can even be used as a supplemental long-term savings vehicle.
Review Professional and Business Expenses
Business Structure
Your business entity—whether an S Corp, C Corp, or LLC—has a direct impact on how your income is taxed and what deductions are available. As part of your year-end review, consider whether your current structure still makes sense for your practice.
Changes in revenue, staff, or operations may warrant a reevaluation. For example, some surgeons may benefit from restructuring to take advantage of Qualified Business Income (QBI) deductions or reduce exposure to self-employment taxes.
A discussion with a tax professional and an SCM advisor can help clarify if adjustments should be considered ahead of the 2026 tax code updates.
Deductible Expenses
Year-end is also the right time to gather and categorize your professional expenses. Many of these can reduce your taxable income, so taking time to document and reconcile them may lead to valuable tax savings.
Some commonly overlooked deductions for surgeons include:
- Professional association dues and licensing fees
- Continuing education courses
- Malpractice insurance premiums
- Equipment purchases and maintenance
- Home office expenses, if applicable
- Travel and meals related to conferences or business
Maintaining clear records now will help reduce the stress of tax season and allow your CPA or financial team to apply all applicable deductions.
SCM: Wealth Management for Surgeons in Pennsylvania
Wrapping up the year with a focused review of your tax situation, investment portfolio, and business expenses is a valuable way to position yourself for the months ahead.
At Surgeons® Capital Management, we’ve built our firm around the specific financial lives of medical professionals. As leading financial advisors for surgeons in Pennsylvania, we aim to help you uncover opportunities, reduce inefficiencies, and stay ahead of policy changes.
As you prepare for 2026, taking action today may make a meaningful difference in your future financial flexibility.
Contact us to speak with one of our advisors serving Pennsylvania-based surgeons and healthcare professionals.
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Associates of Surgeons Capital Management are registered representatives of Equitable Advisors, LLC (Equitable Financial Advisors in MI and TN), a broker-dealer; investment advisor representatives of Equitable Advisors, LLC, an SEC-registered investment adviser; and agents of Equitable Network, LLC (Equitable Network Insurance Agency of California, LLC; Equitable Network Insurance Agency of Utah, LLC; Equitable Network of Puerto Rico, Inc.). Equitable Advisors and its affiliates do not provide tax, accounting, or legal advice or services. AGE-8596953.1(11/25)(exp.11/29)
