CFPs Caution: 2025 Tax Shifts May Derail Clients’ Financial Plans
With key provisions of the Tax Cuts and Jobs Act (TCJA) set to expire on December 31, 2025, Certified Financial Planners (CFPs) are raising significant concerns about the potential risks to their clients’ retirement and financial plans.
According to the 2025 CFP Professionals Taxes Survey conducted by the CFP Board—the professional body overseeing personal financial planners in the U.S.—88% of CFPs believe that the impending tax changes pose a critical risk to their clients’ financial objectives.
“We’re at a tipping point that will define the financial future for millions of Americans,” CFP Board CEO Kevin Keller said. “The risks are real, and time is running out.”
Enacted in 2017 during President Donald Trump’s first term, the TCJA overhauled the U.S. tax code, introducing provisions that lowered tax rates, adjusted deductions, and reshaped financial planning strategies. With many of these changes expiring at the end of 2025, the president has an opportunity in his second term to extend or expand his tax policy agenda. Until then, CFP professionals are taking proactive steps to shield clients from the potential fallout.
In anticipation, CFPs are suggesting tailored strategies, as outlined in a recent survey. These include Roth conversions (64%), encouraging clients to move funds into Roth accounts for tax-free benefits later; increased retirement plan contributions (64%), urging higher deposits into tax-deferred accounts; and tax-loss harvesting (61%), leveraging investment losses to reduce taxable income. These approaches target clients’ leading concerns: retirement account taxation (61%), the tax implications of their nest eggs; current income tax exposure (59%), their immediate tax liabilities; and potential tax rate changes (55%), uncertainties surrounding future tax policies.
To enhance tax efficiency, financial advisors are adopting robust strategies. According to the survey, 78% are strategically timing capital gains to minimize tax burdens, while 75% are leveraging tax-efficient retirement income plans to optimize withdrawals. Additionally, 71% of CFPs are focusing on maximizing contributions to tax-deferred accounts, aiming to shield client wealth ahead of the TCJA provisions’ expiration.
The TCJA removed tax deductions for financial advice, erecting obstacles to professional guidance. According to the survey, 52% of CFPs report this change has harmed consumer access to services. Meanwhile, 50% argue that reinstating these deductions would make professional financial advice more affordable for a broader swath of Americans.
To broaden access to financial planning, CFPs are pushing for policy changes. According to the survey, 46% support an above-the-line tax deduction, while 39% favor a tax credit system. These measures, they argue, would enable more Americans to afford the expert guidance required to address impending tax shifts.
The survey gathered insights from 312 Certified Financial Planner (CFP) professionals, randomly chosen across the U.S., between January 16 and February 4, 2025. The data carries a sampling error of +/- 5.5% at a 95% confidence interval, as noted by the CFP Board.
