Before the year closes, a few strategic financial moves can position you for greater confidence and clarity in 2026.
Introduction
Since we are close to flipping the calendar to 2026, this is a great time to sit down and reflect on the past financial year and anticipate what might be ahead. Here are a few actions to consider taking before year-end:
1. Max Out Retirement Plan Contributions
If you haven’t maxed out your retirement plan contributions for 2025, you may want to use your year-end bonuses to do so.
The maximum 401(k) contribution for 2025 is $23,500. If you are over the age of 50, you can contribute up to $31,000.
2. Consider Increasing Salary Deferral
Consider increasing next year’s salary deferral to your retirement plan by one percent or more.
If you are anticipating a raise next year, it’s a great way to save a portion of it before you spend that extra cash.
3. Review Required Minimum Distributions (RMDs)
As a reminder, review your accounts to ensure you’ve satisfied your RMD. If you haven’t, consider giving all or a portion of it to a charitable cause utilizing a Qualified Charitable Distribution (QCD), allowing you a tax benefit for giving—even if you take the standard deduction.
Required Minimum Distributions (RMDs) from IRAs will begin for those turning 73 in 2026.
4. Review Your Tax Situation
Review your tax situation with your advisor and tax professional.
Depending on your current income and projected future income, you may have the opportunity to do Roth conversions to pay a lower tax rate now than in the future.
If you have built up realized gains, you may have the opportunity to realize long-term capital gains at a low tax rate. If you have any positions at a loss, it may be a good opportunity to do some tax-loss harvesting to offset future gains.
5. Contribute to a 529 Plan
If you have a child nearing college age, consider putting more into a 529 plan. Many states offer a state income tax deduction for contributions.
For example, in the state of Iowa, contributions up to $5,800 per beneficiary by an individual (up to $11,600 per beneficiary by married taxpayers filing jointly) are deductible when computing your taxable income for the state of Iowa.
6. Revisit Standard Deductions and Charitable Planning
With standard deductions now at $31,500 for married couples filing jointly ($15,750 for single), you may want to consider the following:
- Consider combining charitable gifts for a few years into a single year. By doing this, you could receive a higher itemized deduction this year and then utilize the standard deduction next year.
- Be aware that, if you use the standard deduction, you won’t be able to deduct mortgage interest, which can be yet another benefit to eliminating debt.
7. Evaluate Next Year’s Benefits
Take time to think about the year ahead before electing your benefits for the next year.
- If you have a high deductible healthcare plan, consider maximizing a Health Savings Account (HSA). The 2025 contribution limit for an individual is $4,300 and $8,550 for a family. HSA holders 55 and older get to save an extra $1,000.
- Have you met your out-of-pocket maximum for your health insurance plan in the current year? If you have, consider any medical care you’ve been putting off before the end of the year.
- Are you aware of any certainties when it comes to your health care in 2026? If you know you are having a baby, a surgery, or some other medical procedure in 2026, have the provider give you an estimate of cost so that you can evaluate your health plan options.
8. Review Stock Options or Restricted Stock
If you are a recipient of stock options or restricted stock, review the number of units vested to you in 2025 and that will be vested to you in 2026.
Make sure that your tax preparer is aware of those so that you can plan for them in advance. There may be opportunities to offset that extra income with increased retirement plan contributions or deferred compensation contributions.
9. Set a Fun Goal
Saving money is great, but plan to have a little fun along the way. Reward yourself for hitting some increased savings goals.
Start 2026 Positioned for Strength
Year-end planning isn’t about reacting — it’s about aligning today’s decisions with tomorrow’s goals.
If you’d like to walk through this checklist as it applies to your situation, we’re here to help.
