Year-End Financial Moves to Make Before December 31

Posted on October 28, 2026

The calendar is closing in fast. A few short conversations now can save a lot of scrambling later. Here’s what we’re reviewing with our clients.

Deadlines That Don’t Move

401(k), 403(b) and 457(b) deferrals. The 2026 limit is $24,500, and contributions have to be in by December 31. If you’re 50 or older, you can add $8,000, or $11,250 if you’re 60 to 63.
Required minimum distributions. Take yours by year-end. Missing it can mean a steep penalty.
Inherited IRAs. Ask your advisor whether you need to take a withdrawal this year.
FSA balances. Use up any FSA money before it expires.
Roth conversions. Talk to your advisor about converting part of a traditional IRA to a Roth. It has to be done by December 31 to count for this year.
Tax-loss harvesting. Losses can offset gains elsewhere. Watch the 30-day wash sale rule, and call us before you sell.

New $2,000 Charitable Deduction

If you take the standard deduction, you can now deduct up to $2,000 of cash gifts to charity if you file jointly ($1,000 if single), with no itemizing required.

Pro Tip: Save your receipts and send the total to your CPA at year-end. Only cash gifts to public charities count. Gifts to donor-advised funds and gifts sent from your IRA don’t.

Giving From Your IRA

If you’re 70½ or older, a qualified charitable distribution (QCD) sends money straight from your IRA to a charity, so it isn’t added to your taxable income. It can also count toward your RMD. The 2026 limit is $111,000 per person. Start early, because December is busy.

Check Your HSA Beneficiary

It takes five minutes. A spouse who inherits your HSA gets to treat it as their own. Anyone else owes tax on the full value. If you’re single, use up your HSA. The tax benefit does not pass to your heirs.

Trump Accounts

If your child or grandchild was born between January 1, 2025 and December 31, 2028, make sure the parent claims their Trump Account and the one-time $1,000 from the U.S. Treasury. It won’t claim itself. Learn more at TrumpAccounts.gov.

Annual Gifts: Use It or Lose It

You can give up to $19,000 per person in 2026 without touching your lifetime exemption or filing a gift tax return. A couple can give double. Unused exclusion doesn’t carry over.

The Bottom Line

Not sure what applies to you? Let’s talk before the holidays. As always, check with your tax accountant before making any moves.

Sources

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