Year-End Tax Checklist: 10 Money Moves to Make Before December 31

Most tax-saving moves have to happen before the calendar year ends. Once January arrives, it's too late for many of them. Use this checklist in November and December to lower your 2026 tax bill and set up 2027.

1. Boost your 401(k) contributions

401(k), 403(b) and 457(b) contributions must come out of paychecks by December 31. The 2026 limit is $24,500 ($32,500 if you're 50+, $35,750 at ages 60–63). If you have room, raise your contribution percentage for the last paychecks of the year. See 401(k) basics.

2. Take your required minimum distribution (RMD)

If you're 73 or older (75 if born in 1960 or later), you generally must withdraw your RMD from traditional IRAs and 401(k)s by December 31. Your first RMD can wait until April 1 of the following year, but then you'd take two in one year. Missing an RMD triggers a 25% excise tax on the shortfall (10% if corrected promptly).

3. Harvest investment losses

Selling investments at a loss in a taxable account can offset capital gains and up to $3,000 of ordinary income. Watch the wash sale rule. Full guide: tax-loss harvesting explained.

4. Consider realizing gains at 0%

If your 2026 taxable income is low enough (up to $49,450 single or $98,900 married filing jointly), long-term capital gains may be taxed at 0%. Selling winners and rebuying can reset your cost basis higher for free. See capital gains tax explained.

5. Use your FSA money

Health FSA funds may expire at year-end. Check your balance and your plan's carryover or grace period. See FSA rules.

6. Make charitable gifts strategically

• Donate appreciated stock held over a year instead of cash: you can avoid capital gains tax and may deduct the full value if you itemize.
• Qualified charitable distributions (QCDs): at 70½ or older you can give directly from your IRA to charity. QCDs count toward your RMD and aren't taxable income.
• "Bunching" two years of donations into one year can help you itemize in alternating years.

7. Give gifts to family within the annual exclusion

You can give up to $19,000 per person in 2026 ($20,000 in 2027) without filing a gift tax return. See gift tax exclusion explained.

8. Consider a Roth conversion

Conversions must be completed by December 31 to count for 2026. A lower-income year can be a good time to convert. See Roth conversions explained.

9. Review new deductions

If you received qualified tips or overtime, or you're 65+, make sure you understand the new deductions so you can keep records and adjust withholding: no tax on tips and overtime and the $6,000 senior deduction.

10. Check your withholding and estimated taxes

If you'll owe a lot, increase withholding on your final paychecks or make a fourth-quarter estimated payment (normally due January 15). Withholding is treated as paid evenly through the year, which can help avoid underpayment penalties.

Things that can wait until April 15, 2027

• Traditional and Roth IRA contributions for 2026 ($7,500, or $8,600 at 50+). See Roth vs traditional IRA.
• HSA contributions for 2026 ($4,400 self / $8,750 family). See HSAs explained.

Plan ahead for 2027

Look at the new 2027 tax brackets, update your W-4 if your life changed, and set up automatic contributions for January so next year's savings start on day one.

Sources: IRS 2026 limits and inflation adjustments; SECURE 2.0 Act RMD rules. Consider a tax professional for your specific situation.