Before December 31, review retirement contributions, investment gains and losses, health savings accounts, deductions, Roth conversions, and required minimum distributions. These decisions may reduce current taxes, support future tax flexibility, or help you meet withdrawal requirements. The right combination depends on your income, age, filing status, and financial goals.
Year-end planning works best when you consider these choices together. A deduction may lower taxable income, while a Roth conversion may increase it. Start with a projection of your 2026 tax situation, then consider the following six areas.
Pre-tax workplace retirement contributions generally reduce current federal taxable income. Roth contributions do not.
For 2026, employee contribution limits for 401(k), 403(b), and governmental 457 plans generally are:
| Your age in 2026 | Employee contribution limit, including applicable catch-up |
| Under 50 | $24,500 |
| 50-59 or 64+ | $32,500 |
| 60-63 | $35,750 |
The higher catch-up for ages 60–63 replaces the standard catch-up; it is not added to it. Plan provisions and compensation limits apply.1
A change for higher earners: For 2026, affected employees whose 2025 wages from the sponsoring employer exceeded $150,000 generally must make catch-up contributions on a Roth basis. Confirm how this applies with your plan administrator.2
Review your remaining pay periods and payroll deadlines early enough to make any changes.
Tax-loss harvesting involves selling investments at a loss in a taxable account to offset capital gains.
If losses exceed gains, you generally can deduct up to $3,000 of net capital losses against ordinary income, or $1,500 if married filing separately. Unused losses can carry forward to future years.3
Watch the wash-sale rule: buying substantially identical securities within 30 days before or after a loss sale can disallow the current deduction. Review automatic dividend reinvestments and purchases in other accounts, including IRAs, before trading.4
Any sale should also fit your investment strategy. A potential tax benefit is one factor in deciding whether an investment still belongs in your portfolio.
Eligible HSA contributions can provide a federal income tax benefit, and withdrawals for qualified medical expenses generally are tax-free.
For 2026, contribution limits are $4,400 for self-only coverage and $8,750 for family coverage. Eligible individuals age 55 or older may contribute an additional $1,000. Employer contributions count toward the limit.5
Eligibility generally requires HSA-qualified health coverage, no disqualifying additional coverage, no Medicare enrollment, and that you cannot be claimed as another taxpayer’s dependent. Your allowable contribution may depend on how many months you qualify. Confirm eligibility with your benefits provider, particularly if your coverage changed during the year.
Unlike many year-end moves, HSA contributions generally can be made until the federal tax return filing deadline, excluding extensions.5
Your age, earnings, borrowing, and charitable giving may create additional deduction opportunities.
Several deductions are available to eligible taxpayers whether they itemize or claim the standard deduction:
Senior deduction: Up to $6,000 per qualifying person age 65 or older, or $12,000 when both spouses qualify.
Qualified tips: Up to $25,000 for eligible tips in qualifying occupations.
Qualified overtime: Up to $12,500, or $25,000 for joint filers. This generally covers the qualifying premium portion of overtime, rather than all overtime wages.
Vehicle loan interest: Up to $10,000 for interest on a qualifying loan for an eligible new personal-use vehicle with final assembly in the United States.
These deductions have income phaseouts and other eligibility requirements. Married taxpayers generally must file jointly to claim the senior, tips, or overtime deductions.6
Charitable giving also has new rules for 2026. Taxpayers taking the standard deduction may deduct eligible cash gifts of up to $1,000, or $2,000 for joint filers. For itemizers, charitable contributions generally are deductible only above 0.5% of adjusted gross income, subject to other limits.7
Before making a substantial gift, review the amount, timing, recipient, and documentation with your tax professional.
A Roth conversion may be worth evaluating during a lower-income year or when paying tax now fits your longer-term retirement strategy.
Converting pre-tax retirement assets generally creates taxable income in the conversion year. Qualified Roth IRA withdrawals generally are tax-free. A conversion cannot later be reversed through recharacterization. [8]
Consider a partial conversion alongside your expected income, available deductions, and ability to pay the resulting tax. Additional income can affect income-based tax benefits, so evaluate the full tax projection before proceeding.
To target 2026 treatment, arrange your conversion well before December 31 and confirm processing requirements with your custodian. If you owe an RMD, that required amount cannot be converted.8
Required minimum distributions generally apply to traditional IRAs and pre-tax workplace retirement accounts, with most annual withdrawals due December 31.
For someone reaching age 73 in 2026, the first RMD generally is for 2026. It may be delayed until April 1, 2027, but that typically means taking both the first and second RMDs in 2027. Some workplace plans permit eligible employees to delay RMDs until retirement.9
Missing an RMD can result in a 25% excise tax on the shortfall, potentially reduced to 10% with timely correction. Roth IRAs and designated Roth workplace accounts do not require lifetime RMDs from their owners; inherited accounts have separate rules.9
A year-end review is an opportunity to connect tax decisions with your retirement income, investment strategy, charitable priorities, and cash needs.
At Samalin Wealth, we help clients consider how these choices fit their broader financial goals and coordinate with their tax professionals. Contact our team to discuss your year-end planning priorities.
This material is for informational and educational purposes and is not individualized tax, legal, or investment advice. Federal rules are summarized; state tax treatment may differ. Consult your tax professional before acting. Information reviewed October 27, 2026.