This year’s stock market rally -- the Standard & Poor’s 500 Index returned 25 percent through October -- has tax implications for many investors with mutual funds, said Green of Wells Fargo Advisors.

Capital Gains

“This year the chances of having long-term capital gain distributions are going to be pretty good,” she said.

Mutual fund companies are releasing estimates of distributions this month, which investors can use to plan, Green said. Those intending to sell a fund should do so before distributions, while investors seeking to buy shares should wait until after, she said.

Some high earners may have to shift their usual year-end strategies because the new top rate means they are no longer subject to the alternative minimum tax, or AMT, said Di Re of Ernst & Young. Taxpayers not subject to the minimum tax can pre- pay state income or real estate taxes before Dec. 31 to lower their taxable income, Zatorski of PwC said.

Bumping up charitable donations is another strategy, Kalb of Greenberg Traurig said. Taxpayers with gains in publicly traded stocks can donate them to a public charity or their own private foundation. They’d be eligible for a charitable deduction equal to the fair value of the security, and would avoid the long-term capital gains rates, he said.

Retirement Plans

Individuals age 70 1/2 or older should consider giving as much as $100,000 to a qualified charity directly from an individual retirement account, Wells Fargo’s Green said. The donation can meet all or a portion of the annual required minimum distribution for IRA owners and isn’t recognized as income.

Also, high earners can maximize contributions to tax- advantaged retirement plans and realize some losses to offset capital gains, Green said.

Another recommended strategy is to defer income by investing in private-placement life insurance and private annuities. These are designed for high net-worth individuals, Kalb said.