As we close out 2025, it’s time to prepare your finances for the new year. 

For U.S. expats, whether you’re living in Israel, France, or anywhere else abroad, year-end is an ideal moment to reduce your tax burden, shore up compliance, and position your investments for 2026.

But first, if you’re new to life in Israel, check out our other helpful reads on moving abroad, cross-border finances, and tax-smart planning for expats:

What to do when you get kicked out of your US brokerage account

Can one use a US Power of Attorney in Israel, (and vice versa)?

Immigrating to Israel

A guide to retiring in Israel

Checklist for moving to Israel

A guide to investing abroad

Israel expat case studies

Social Security for expats

Financial planning for US citizens living abroad

Selling a house in Israel as a US citizen

Why US Expats should look before they leap into a Roth 401k

Compliance with reporting of foreign assets: tips for US expats to avoid stress

What expats need to know about Brokerage Accounts for non-US residents

And now let’s get into the blog!

Here are some top items to review before the clock strikes midnight:

1. Realize Losses and Gains Strategically

Year‑end is the ideal time to review your investment portfolio for tax efficiency. If you have positions that are down, consider tax‑loss harvesting to offset realized capital gains. 

And for Americans living in Israel under the 10‑year tax exemption on foreign investment income, timing is especially important: loss carry‑forwards can only be used within that 10‑year window. 

If you’re sitting on unrealized gains, you may even choose to sell and immediately repurchase profitable positions, locking in gains now so they can offset losses before the exemption period ends.

2. Set Aside Tax Payments Early

Even if you plan to file for an extension, your 2025 taxes must still be paid, nearly in full, by April 15, 2026 to avoid penalties and interest. 

Don’t get caught off guard by an unexpected bill. Forecast your liability now and reserve the funds accordingly.

3. Revisit Your Retirement Contributions Before the Year Closes

Review how much you can contribute to your IRA, SEP-IRA, or Solo 401(k), especially if you’re self-employed or have U.S. source income.

A cross-border financial advisor can help ensure you’re taking full advantage of what’s available while avoiding contribution errors.

4. Don’t Miss Your Required Minimum Distributions (RMDs)

If you’re 73 or older, or have inherited an IRA, you’re required to take your RMD by December 31. Failing to do so can result in steep IRS penalties.

For U.S. expats, the good news is you don’t need to transfer the funds overseas. Simply moving the correct amount into your U.S. brokerage account counts as fulfilling the requirement.

Keep in mind: RMDs count as fully taxable income for the 2025 tax year.

5. Review Your Social Security Credits

To qualify for the U.S. Social Security benefits, you need 40 credits, typically one for each quarter worked, adding up to 10 years.

If you’re currently short, you still have time. You can earn up to four additional credits in 2025 based on eligible income. 

For many expats, this is a critical step toward securing future benefits, so don’t overlook it.

6. Update Your Beneficiaries

Life changes, like marriage, divorce, relocation, or the birth of a child, can impact your long-term intentions. 

That’s why year-end is a smart time to review and update beneficiaries across key documents and accounts, including:

• Wills and trusts
• IRAs and 401(k)s
• Life insurance policies

Even a small oversight can create complications later. Keeping beneficiary designations current ensures your assets go where you intend, without delays or disputes.

7. Understand and Monitor Your Tax Residency Status

If you’re a U.S. expat living abroad, spending too many days back in the States could unintentionally trigger the Substantial Presence Test (SPT), which may reclassify you as a U.S. tax resident, with global tax implications.

Even if you consider yourself a non-resident for lifestyle or visa reasons, the IRS may disagree if your physical presence exceeds certain thresholds. 

If you’re approaching the limit, consult a cross-border tax advisor to explore elections or planning moves that preserve your non-residency status.

8. Secure and Organize Proof of Income

Whether you’re self-employed, a freelancer, or running a business overseas, make sure your income records are clean and accessible. 

Up-to-date invoices, bookkeeping entries, and financial statements are often requested by tax authorities, lenders, and immigration offices. 

A little year-end housekeeping now can prevent delays, or denials, later.

9. Prepare Early for FATCA and FBAR Filing

If you hold foreign financial accounts, such as bank, pension, or investment accounts, now’s the time to get organized. 

U.S. citizens abroad must often report these under FBAR (FinCEN Form 114) and FATCA (Form 8938). 

To stay compliant, gather your year-end balances and any necessary account details before December 31. Starting early ensures fewer surprises during tax season.

Need Help Navigating Year-End Decisions?

Managing cross-border finances as a U.S. expat is anything but straightforward, from optimizing tax strategies and retirement distributions to ensuring compliance with FATCA and FBAR. 

That’s where Nardis comes in. Our team specializes in helping Americans abroad make informed, compliant, and tax-efficient financial decisions tailored to their unique residency, income sources, and long-term goals. 

Whether you need guidance on U.S.-Israel tax coordination, Social Security planning, or retirement structuring, Nardis offers the clarity and confidence you need to enter the new year financially secure. 

Contact us today to schedule a personalized consultation

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Disclaimer

Nardis Advisors LLC (“Nardis”) is a Registered Investment Advisory Firm regulated by the U.S Securities and Exchange Commission in accordance and compliance with applicable securities laws and regulations. Registration does not imply a certain level of skill or training. Nardis does not render or offer to render personalized investment advice through this medium. The information provided herein is for informational purposes only and does not constitute financial, investment or legal advice. Investment advice can only be rendered after delivery of the Firm’s disclosure statement (Form ADV Part 2) and execution of an investment advisory agreement between the client and Nardis.