As the year winds down, it’s easy to get swept up in holidays, travel, and family plans. But before December 31 arrives, it’s worth pausing to make sure your financial life is on track and positioned for the new year. Thoughtful planning now can help reduce your tax bill, strengthen your long-term strategy, and give you confidence heading into 2026.
Here are the most important steps to review before year-end.
Review retirement contributions
Confirm you’ve contributed what you intended to your 401(k), IRA, or Roth IRA. If you’re aiming to max out contributions, double-check where you stand. Even a small increase now can make a meaningful difference over time.
Complete RMDs (Required Minimum Distributions)
If you’re age 73 or older, or you’re taking inherited IRA distributions, be sure your RMD is scheduled. Missing the deadline can lead to steep penalties, so it’s worth confirming early. If you’ve already taken your distribution, take a moment to ensure it has been documented correctly.
Evaluate opportunities for tax-loss harvesting
Down years happen, but losses can sometimes work in your favor. Realizing a loss in a taxable account can offset gains elsewhere and help reduce your tax burden. This is something we can help evaluate and execute in a way that fits your broader plan.
Plan year-end charitable gifts
If charitable giving is part of your strategy, now is the time to finalize donations. Whether you give cash, appreciated securities, or through a donor-advised fund, year-end gifts may provide valuable tax benefits.
Check FSA and HSA balances
If you have a Flexible Spending Account, review what needs to be spent before the deadline. HSAs, on the other hand, can continue to grow tax-free, so year-end is a good time to review contributions.
Revisit your financial goals
How did 2025 align with your goals? Whether it was making progress on savings, preparing for retirement, or navigating major life changes, reflecting on the year can help set clear priorities for 2026.
Ready to plan for next year? Read our guide to 👉 Setting Financial Goals for 2026
Disclosures
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.
Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.
A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.
This material was created using Artificial Intelligence (AI) tools.
