Year-End Tax Planning: What You Can Still Do Before December 31

There is still time to lower your 2026 tax bill, but the window is closing. The moves that make the biggest difference, from retirement contributions to charitable giving, need to happen before December 31, not in April when your return is already due. Here is what is worth a look before the year closes out.

Key Tax Moves to Consider Before Year-End

A handful of decisions made in the next few weeks can meaningfully change what you owe, or what you keep, next spring.

Max Out Your Retirement Contributions

If you have not hit your contribution limit for your 401(k), 403(b), or IRA this year, you may still have room. Contributions to a traditional account reduce your taxable income for the year, while Roth contributions grow tax free later. If your employer offers a match, check that you have captured the full amount before the plan year closes. Self-employed individuals with a SEP IRA or solo 401(k) often have more flexibility and a later deadline, so it is worth confirming your specific plan's rules.

Consider a Roth Conversion Before Year End

A Roth conversion means moving money from a traditional IRA into a Roth IRA and paying the tax on that amount now, in exchange for tax free growth and withdrawals later. This can make sense if you expect to be in the same tax bracket or a higher one in retirement, or if you want to reduce future Required Minimum Distributions. Converting in a lower income year, such as one where you had reduced earnings, can also stretch the value of the move. The tradeoff is real: you are paying tax today on income you might otherwise have deferred, so this is worth reviewing with your full picture in mind before you act.

Review Your Charitable Giving

If giving is part of your plan, timing matters. Donating appreciated stock instead of cash can let you avoid capital gains tax while still claiming a deduction for the full value. If you are 70 and a half or older, a Qualified Charitable Distribution lets you send money directly from your IRA to a qualifying charity, which can satisfy some or all your Required Minimum Distribution without adding to your taxable income. Bunching several years of giving into one tax year is another strategy worth discussing if you are close to the standard deduction threshold.

Harvest Investment Gains or Losses

Tax loss harvesting means selling investments that have lost value to offset gains elsewhere in your portfolio, which can lower your overall tax bill. On the flip side, in some years it makes more sense to harvest gains, particularly if you are in a lower bracket now than you expect to be later. Either strategy depends heavily on your specific holdings and goals, so it is not a one size fits all decision.

Take Your Required Minimum Distribution

If you are at the age where RMDs apply to your retirement accounts, missing the deadline comes with a real penalty. Confirm the amount, confirm the deadline, and make sure the distribution is scheduled with enough time to process before December 31.

Does Where You Live Change Anything?

It can. State tax laws vary, and where you live can affect how retirement income is taxed, whether certain deductions are available, and how much you ultimately owe. These differences can influence decisions like a Roth conversion or the timing of a retirement account distribution, especially if you split time between multiple states or recently relocated. Reviewing both the federal and state tax implications of your situation can help you make more informed decisions and identify potential opportunities while avoiding unexpected tax consequences.

What If You Have Already Maxed Out Your Retirement Accounts?

If your retirement contributions are already where they need to be, there are still other levers. Reviewing your withholding and estimated payments before year end can help you avoid a surprise bill or an unnecessary refund, especially if your income changed this year due to a bonus, a new job, or investment gains. Looking at whether a health savings account has room left is another often overlooked option, since HSA contributions are deductible and can be invested for future medical costs. And if you have a flexible spending account, check the deadline and balance so you are not leaving pre-tax dollars unused.

Business owners have a few additional items worth a look before year end, including whether equipment purchases, retirement plan contributions for employees, or the timing of invoices and expenses could shift income between this year and next in a way that helps your overall tax picture.

How Should You Prioritize These Moves?

With several options on the table, it helps to think in terms of deadlines first. Required Minimum Distributions and Roth conversions are hard cutoffs, so those come first if they apply to you. Retirement contributions through an employer plan typically also need to happen by December 31, while contributions to an IRA often have more flexibility and can be made up until the tax filing deadline the following spring. Charitable giving strategies, especially ones involving appreciated securities or a Qualified Charitable Distribution, take a little more lead time to process, so those are worth starting sooner rather than later. Tax loss or gain harvesting can typically happen right up until the last trading day of the year, which makes it one of the more flexible items on this list.

Rather than trying to tackle everything at once, it often helps to start with whichever moves have the earliest deadlines and the biggest potential impact on your specific situation, then work through the rest as time allows.

Frequently Asked Questions

How much can I still contribute to my 401(k) or IRA this year?

Contribution limits are set annually and vary by account type and your age, with an additional catch-up amount available once you reach a certain age. If you are unsure how much room you have left, your plan administrator or advisor can confirm the exact number for your specific accounts, including whether any employer match has already been factored in.

Is it too late to do a Roth conversion for this year?

Not yet, but the deadline is firm. A Roth conversion needs to be completed by December 31 to count for the current tax year, so this is one of the more time sensitive items on this list. Processing times can vary by custodian, so it is worth starting the request well before the last week of December rather than waiting until the final days.

What is a Qualified Charitable Distribution?

A Qualified Charitable Distribution is a transfer made directly from your IRA to a qualifying charity. If you meet the age requirement, it can count toward your Required Minimum Distribution without increasing your taxable income, which is different from writing a check and claiming a deduction afterward, since a deduction only helps if you itemize.

When is my Required Minimum Distribution due?

For most account holders who are already taking RMDs, the deadline is December 31 of the current year. If this is the first year an RMD applies to you, you may have a slightly later deadline, so it is worth confirming your specific date rather than assuming the standard one applies.

Should I meet with an advisor now or wait until tax season?

Now. Many of the moves that reduce your tax bill, like retirement contributions, Roth conversions, and charitable giving strategies, have to happen before December 31. By the time your tax return is being prepared, most of those decisions are already behind you, and your accountant is left simply reporting what already occurred rather than helping you plan around it.

Where to Go from Here

As the year comes to a close, we’re here to help you make the most of the opportunities available to you. If you have questions about any of these strategies or would like to review how they fit into your financial plan, we’re happy to help.

Have questions about your year-end tax planning? Fill out the form below, and we’ll be in touch to discuss your options.