The final weeks of the year are when planning compounds.
You can make a few decisions before Dec 31 to lower your tax bill, protect what you’ve built, and start the next year with intention.
This checklist groups what matters into three components: what expires, what will lower your tax bill, and what will protect your family. Use this guide as a conversation starter with your advisor as you prepare for year-end.
| HSA, self only/family | $4,400/$8,750 |
| HSA catch-up, 55+ | $1,000 |
| 401(k) | $24,500 |
| 401(k) catch-up, 50+ | $8,000 |
| 401(k) catch-up, 60-63 | $11,250 |
| IRA | $7500 |
| IRA catch-up, age 50+ | $1,100 |
| QCD limit, per person | $111,000 |
| Gift exclusion, per recipient/per couple | $19,000/$38,000 |
What expires on December 31
Getting in front of the hard deadlines should be your priority.
Take your required minimum distributions. If you’re 73 or older, confirm you’ve taken your 2026 RMDs. Missing one can trigger a penalty of up to 25% of the amount you should have withdrawn, plus income tax. RMDs typically apply to traditional IRAs, including SEP and SIMPLE IRAs, profit-sharing plans, and defined contribution plans like 401(k)s. If you turned 73 this year, your first RMD isn’t due until April 1, 2027. Every RMD after that is due December 31.
Spend down your FSA. Most plans forfeit unused funds. Check with your employer on the rules because some plans allow a limited carryover and others offer a grace period into early 2027.
Maximize your HSA. The 2026 limit is $4,400 for self-only coverage and $8,750 for family coverage, with an additional $1,000 if you’re 55 or older.
Use the annual gift exclusion. For 2026, you can give up to $19,000 per recipient ($38,000 per couple) without using any of your lifetime exemption.
What lowers your bill
This is where year-end planning pays off most.
Max out your 401(k). The 2026 employee limit is $24,500. You’re able to add an $8,000 catch-up if you’re 50 or older, or $11,250 if you’re 60 to 63. It is also important to ensure you’re capturing your full employer match. When you leave that unclaimed, you walk away from compensation you’ve already earned.
Another retirement-planning option is contributing to an IRA. In 2026, the limit is $7,500, with a $1,100 catch-up if you’re 50 or older.
Review your gains and losses. Selling losing positions can offset gains and reduce taxable income, with up to $3,000 of excess losses deductible against ordinary income. Ask your advisor about tax-aware vehicles like municipal bonds and how they fit your situation.
For tax-loss harvesting, think year-round, not just at the end of the year. Year-end harvesting captures what’s visible in December. A continuous approach, like Farther’s daily tax-loss harvesting or direct indexing, can help you capture opportunities year-round.
For some people, depending on their bracket and retirement timeline, it can be a smart choice to evaluate a Roth conversion. For those people, a Roth conversion in a year where you have a lower income can reduce your lifetime tax burden. Consult your tax advisor before executing.
Give with intention. A Donor Advised Fund can be a more flexible vehicle than a private foundation or charitable trust. If you’re 70 and a half or older, a Qualified Charitable Distribution (QCD) allows you to send up to $111,000 directly from your IRA to a qualified charity. The QCD counts toward your RMD without adding to your taxable income. For larger, more complex giving, charitable remainder trusts and charitable lead trusts can support you and fuel the philanthropic causes you care about. Your advisor can design these with an estate attorney.
What protects the people you love
Taxes are the urgent part of year-end. This is the important part.
Review your estate documents. Your will, revocable trust, powers of attorney, and healthcare directives should all reflect your current intentions.
Set aside time to review your retirement accounts, life insurance policies, and transfer-on-death accounts, and check your designated beneficiaries. Make sure these align with your wishes. An outdated designation is a frequent, easily avoidable mistake.
Account for what changed this year, including marriages, births, deaths, and divorces that could have impacted your plan. Address them sooner rather than later.
Revisit your insurance. Home, auto, umbrella, and life policies can fall out of step with what you actually own and owe after a change in lifestyle, assets, or family. Underinsurance often isn’t visible until a claim forces the question, and by then it's too late to fix.
Start with one conversation
You don’t need to tackle all of this at once, and you don’t need to do it all alone. Set aside time before the holiday rush to address what matters to you.
