As 2025 comes to a close, this is one of the most important windows of the year to revisit your financial strategies and make sure you’re positioning yourself wisely for the year ahead. With shifting tax laws, evolving compensation structures, and increasing complexity around equity, retirement plans, and Washington State taxes, proactive planning can make a meaningful impact, especially for high earners in the tech sector.
At Avier, our work with senior engineers, managers, directors, and executives across Microsoft, Amazon, and other major tech companies has made one thing abundantly clear: your financial life moves fast, and the tax code doesn’t wait for you to catch up.
This guide summarizes the most relevant year-end planning opportunities we’re discussing with clients right now so you can enter 2026 informed and prepared.
Estate & Gift Planning: New Opportunities Ahead
Major changes arrive in 2026:
Federal Changes
- The federal estate and gift exemption is rising to $15M per person ($30M for couples) after December 31, 2025.
- Annual gift exclusion: $19,000 per recipient in 2025/2026.
If your net worth is climbing quickly due to equity, bonuses, and compounding investments, you may have more opportunities to transfer wealth tax-efficiently than ever before. Now is the time to review:
- Your current estate plan
- Beneficiaries
- Trust structures
- Gifting strategies to children, parents, or others
Education Planning Updates That Matter for Tech Families
529 plans now offer expanded flexibility, including for K–12 expenses up to $20,000 per year. Eligible expenses include tuition, textbooks, online learning materials, tutoring, and dual-enrollment college courses.
Additionally, certain unused 529 funds may be eligible for conversion to a Roth IRA under current IRS rules, subject to limits and specific requirements.
Washington State Tax Updates for 2025: Capital Gains & Estate Tax
For tech professionals living in Washington, these changes are especially important.
Washington Capital Gains Tax: New Tiered Rates
WA now applies:
- 7% tax on long-term capital gains above $278,000
- 9.9% tax on gains above $1,000,000
If you hold concentrated stock positions, common among Microsoft, Amazon, and startup employees, this should be part of your year-end planning.
Key tip:
Washington does not recognize losses from worthless stock unless you sell before it is canceled. If you’re holding positions that have gone to zero, consider selling before year-end to retain the loss.
Washington Estate Tax: Higher Exclusion, Higher Rates
Effective July 1, 2025:
- Estate exclusion increased to $3M
- Top estate tax rate increased to 35% – the highest in the nation
This is especially relevant for tech professionals with:
- High-value equity portfolios
- Large RSU accumulations
- Concentrated stock positions
- Significant real estate assets
A review of your estate plan before year-end is strongly recommended.
Final Thoughts: The Best Planning Still Happens Before Year-End
This year brings more moving parts than most, and for high-net-worth families, the stakes are higher. Financial planning done early, and done thoughtfully, can significantly affect your long-term financial trajectory.
At Avier, we help clients integrate:
- Cash flow
- Equity compensation
- DCP strategy
- Retirement planning
- Tax optimization
- Legacy and estate planning
…into a coordinated plan that supports your lifestyle today and your goals for tomorrow.
If you’d like support navigating these year-end decisions, we’re here to help. Schedule your 30-minute virtual Discovery Call below.