Most tax-saving moves have a hard deadline: December 31. Once the year closes, your options for 2026 shrink to a few things like IRA and HSA contributions. That makes the last quarter of the year the best time to look at your tax picture while you can still change it.
This checklist covers the main items to review before the end of 2026. Not every one will apply to you, but it's worth a quick pass through all of them.
1. Max out workplace retirement contributions
Deferrals to a 401(k), 403(b) or governmental 457 plan come out of your paycheck, so they need to happen by December 31. The 2026 limit is $24,500, plus an $8,000 catch-up if you're 50 or older, or an $11,250 catch-up if you turn 60 to 63 in 2026 and your plan allows it.
If you're behind, ask payroll about raising your contribution rate for the remaining paychecks. Note that if your 2025 FICA wages from your employer were over $150,000, your 2026 catch-up contributions must be Roth. See our full guide to 2026 retirement contribution limits.
2. Plan your IRA and HSA contributions
These can wait until the April 2027 filing deadline, but deciding now helps with cash flow. The 2026 IRA limit is $7,500 ($8,600 if you're 50 or older). HSA limits are $4,400 for self-only coverage and $8,750 for family coverage, plus $1,000 if you're 55 or older.
3. Harvest investment losses
If you've taken gains this year, look for investments that are down. Selling them can offset those gains, and up to $3,000 of net losses can offset other income ($1,500 if married filing separately). The wash sale rule disallows the loss if you buy substantially identical securities within 30 days before or after the sale. Our guide to understanding capital gains walks through the details.
4. Take your required minimum distributions
If you're 73 or older, you generally must take your required minimum distribution (RMD) from traditional IRAs and workplace plans by December 31. The one exception is your first RMD, which you can delay until April 1 of the following year (though then you'll take two in one year).
Missing an RMD can trigger a 25% excise tax on the amount not taken, reduced to 10% if you correct it within two years. Roth IRAs and designated Roth accounts in 401(k) and 403(b) plans don't require RMDs while the owner is alive.
5. Rethink charitable giving under the new rules
The One Big Beautiful Bill Act changed charitable deductions starting in tax year 2026:
- If you don't itemize: you can deduct up to $1,000 of cash gifts to qualifying charities ($2,000 for married couples filing jointly). Gifts of clothing, stock or other property don't count.
- If you itemize: only the part of your charitable contributions above 0.5% of your adjusted gross income is deductible. With $200,000 of AGI, the first $1,000 of gifts gives you no deduction.
Because of the floor, "bunching" may make more sense for itemizers. Instead of giving the same amount every year, you combine two or more years of gifts into one year. That pushes you further over the 0.5% floor and possibly over the standard deduction (for 2026, $16,100 for single filers and $32,200 for joint filers). A donor-advised fund can help, since you get the deduction when you contribute and can recommend grants to charities over time.
If you're 70½ or older, a qualified charitable distribution (QCD) sent directly from your IRA to a charity can count toward your RMD and isn't included in your income. The 2026 limit is $111,000 per person.
6. Use up your FSA
Health flexible spending accounts are generally use-it-or-lose-it. Some plans allow a grace period or let you carry over a limited amount (up to $680 into 2027 for 2026 plan years), but not both. Check your plan's rules and schedule eye exams, prescriptions or other eligible expenses before your deadline. When you sign up for 2027, keep in mind the 2026 health FSA limit was $3,400.
7. Check your withholding and estimated payments
A raise, a side business, a big capital gain or a change in deductions can leave you underpaid. Use the IRS Tax Withholding Estimator to see where you stand. If you're short, increasing withholding from your last few paychecks can help, because withholding is generally treated as paid evenly through the year, unlike a late estimated payment. If you're self-employed, see who needs to pay estimated taxes.
8. Make annual exclusion gifts
For 2026, you can give up to $19,000 to any one person without using up any of your lifetime exemption or needing to file a gift tax return for that gift. A married couple can give twice that per recipient if they elect to split gifts (which does require a gift tax return). The exclusion is "use it or lose it" each calendar year, so gifts need to be made by December 31.
9. Review business and self-employment items
If you run a business, year-end is the time to look at equipment purchases, retirement plan setup, and timing of income and expenses. Our article on maximizing small business deductions covers the main options.
10. Start gathering documents
Getting organized now makes filing season easier. Start a folder for:
- W-2s, 1099s (including 1099-B and the new 1099-DA for crypto) and K-1s
- Records of charitable gifts, with written acknowledgments where required
- Retirement and HSA contribution records
- Property tax, mortgage interest and medical expense statements
- Estimated tax payment confirmations
- Cost basis records for anything you sold
For a broader view of what's new this year, read navigating the 2026 tax changes.
When to get professional help
You can work through much of this list on your own. A professional review is worth it if you had a big change this year, such as a new job, a home or business sale, a large gift or inheritance, or retirement. It also helps if you're deciding whether to itemize or bunch gifts under the new charitable rules. Our personal tax preparation team can review your year-end plan, and you can book an appointment before the December rush.
This article is general information, not tax advice for your situation.
Sources
- IRS: 2026 retirement plan and IRA limits (IR-2025-111)
- IRS: Notice 2025-67 (2026 retirement amounts, Roth catch-up wage threshold, QCD limit)
- IRS: Tax inflation adjustments for tax year 2026
- IRS: Rev. Proc. 2025-32
- IRS: Topic no. 506, Charitable contributions
- IRS: Understanding the individual tax provisions of the 2025 law (charitable deduction changes)
- IRS: Required minimum distribution FAQs
- IRS: Donating to charity through your IRA
- IRS: Rev. Proc. 2025-19 (2026 HSA limits)
- IRS: Tax Withholding Estimator
- IRS: Instructions for Form 2210 (withholding treated as paid evenly)
- IRS: Publication 969 (health FSA grace period and carryover)
- IRS: Instructions for Form 709 (gift splitting)
- IRS: Topic no. 409, Capital gains and losses
General information, not tax advice. Tax rules change and depend on your situation. Figures are for tax year 2026 unless noted; confirm current amounts at IRS.gov or talk to a Stellar Tax professional before acting.