Most year-end financial moves must be completed by December 31, 2026 — not by tax day. Required minimum distributions (RMDs), Roth conversions, qualified charitable distributions (QCDs), and tax-loss harvesting all run on a calendar-year clock. Retirement account contributions are the exception: 401(k) deferrals must come out of paychecks you have not yet received, while IRA contributions can generally wait until the tax filing deadline. Work through the checklist below before December, not during the holidays, because several items need your custodian, your payroll department, or your CPA — and none of them move quickly in the last week of the year.
1. Take your RMD — the deadline is December 31
If you are 73 or older (75 if born in 1960 or later), your 2026 required minimum distribution must leave the account by December 31. The penalty for missing an RMD can reach 25% of the amount not withdrawn. Check every pre-tax account you own — traditional IRAs, 401(k)s, 403(b)s — because RMDs generally cannot be aggregated across different plan types the way IRA RMDs can be combined. If you inherited an account, separate inherited-IRA rules apply; see our post on inheriting retirement accounts.
2. Consider a qualified charitable distribution (QCD)
If you are 70½ or older, you can donate up to the annual QCD limit directly from an IRA to a qualified charity. A QCD counts toward your RMD but is excluded from taxable income, which can beat a taxable withdrawal followed by a deductible donation — especially if you take the standard deduction. The transfer must go directly from the custodian to the charity, and it must be completed by December 31.
3. Decide on a Roth conversion — and model the tax bracket first
A Roth conversion moves money from a pre-tax IRA into a Roth IRA. You pay income tax on the converted amount in 2026, and qualified Roth withdrawals later are generally tax-free, with no lifetime RMDs on your own Roth IRAs. The year-end question is not whether conversions are good in general, but how much room you have in your current tax bracket before a conversion pushes you into the next one or raises Medicare premiums (IRMAA). Run the projection before you convert; conversions cannot be undone.
4. Max out your 401(k) — but watch the payroll clock
For 2026, the employee elective deferral limit is $24,500, plus an $8,000 catch-up at age 50 and older, and an $11,250 “super catch-up” for ages 60 through 63 if your plan offers it. The catch: 401(k) contributions can only come from paychecks you have not yet received. If you want to raise your deferral, do it with enough pay periods left in the year — waiting until December may leave no room to catch up. Confirm you are capturing the full employer match first; that is an immediate return no limit should stand in the way of.
5. Fund your IRA — this one can wait until tax day
The 2026 IRA limit is $7,500, plus a $1,100 catch-up at age 50 and older. Unlike 401(k) deferrals, traditional and Roth IRA contributions for 2026 can generally be made until the tax filing deadline in spring 2027. If cash is tight in December, this is the item you can safely defer — but put it on the January calendar so it does not slip.
6. Top off your HSA
If you are covered by a qualifying high-deductible health plan, the 2026 HSA limits are $4,400 for self-only coverage and $8,750 for family coverage, plus a $1,000 catch-up at age 55 and older. An HSA is the only account that is triple tax-advantaged: deductible going in, tax-free growth, and tax-free withdrawals for qualified medical expenses. Note that HSA contributions generally stop once you enroll in Medicare, so check your dates if you are approaching 65. See our post on whether to open an HSA.
7. Harvest tax losses — and respect the wash-sale rule
In taxable accounts, selling investments at a loss can offset realized gains, plus up to $3,000 of ordinary income per year, with unused losses carrying forward. The wash-sale rule disallows the loss if you buy the same or a substantially identical security within 30 days before or after the sale — including inside an IRA. Harvest deliberately, not reflexively: a loss is only worth taking if the replacement holding keeps your portfolio on plan.
8. Bunch charitable giving if you take the standard deduction
If your itemized deductions are close to the standard deduction, consider bunching two years of charitable gifts into 2026 — through a donor-advised fund, for example — so you itemize this year and take the standard deduction next year. Compare that against a QCD if you are 70½ or older; for many retirees, the QCD is the better tool.
9. Review beneficiaries — they override your will
Beneficiary designations on retirement accounts, life insurance, and transfer-on-death accounts pass by contract, not by your will. Review them after any marriage, divorce, birth, adoption, death in the family, or move to a new state. This is also the moment to confirm contingent beneficiaries exist — an empty contingent line is one of the most common and most avoidable estate mistakes.
10. Revisit your Social Security plan for the 2027 COLA
Social Security benefits rise 3.6% in 2027, the largest adjustment since 2023, adding about $75 per month to the average retirement benefit. Use the change as a prompt, not a windfall: a larger benefit can affect how much of your Social Security is taxable and whether your withholding still fits. Check your COLA notice when it arrives — online in late November if you use a my Social Security account, by mail in December otherwise — and be wary of anyone who contacts you claiming they can “activate” the increase; the COLA is automatic, and that pitch is a known scam pattern.
11. Check Medicare open enrollment before December 7
Medicare open enrollment runs October 15 through December 7. If you are on Medicare, this is your annual window to change Part D drug plans or Medicare Advantage plans. Premiums, formularies, and networks change every year — the plan that was cheapest in 2026 may not be cheapest in 2027. Review your prescriptions against the new formulary before the window closes.
12. Rebalance and reset your withholding
Year-end is the natural moment to rebalance back to your target allocation, especially after a volatile year, and to check your tax withholding or estimated payments. A large Roth conversion, a capital gain, or a bigger Social Security benefit can all leave you under-withheld. Adjusting now beats an underpayment surprise in April.
FAQ
What is the deadline for 2026 RMDs?
December 31, 2026. RMDs are due by year-end, not by the tax filing deadline, and the penalty for missing one can reach 25% of the amount not taken.
What is the deadline for a 2026 Roth conversion?
December 31, 2026. The conversion must be completed within the calendar year to count for 2026, and it cannot be reversed.
Can I still contribute to an IRA for 2026 after December 31?
Yes, generally until the tax filing deadline in spring 2027. This is different from 401(k) deferrals, which must come from paychecks received during 2026.
What are the 2026 contribution limits?
401(k): $24,500, plus $8,000 catch-up at 50+ and $11,250 for ages 60–63 if the plan offers it. IRA: $7,500, plus $1,100 catch-up at 50+. HSA: $4,400 self-only / $8,750 family, plus $1,000 catch-up at 55+.
How much is the Social Security COLA for 2027?
3.6%, beginning with benefits payable in January 2027 — about $75 more per month for the average retiree.
Should I do a Roth conversion before year-end?
It depends on your tax bracket, Medicare premium thresholds, and how much pre-tax money you hold. Model the conversion against your projected 2026 income first, because the tax is due in the conversion year and the move is irreversible.
Have questions about maximizing your 2026 investment decisions? Let Financial Directions help guide you. Consult your CPA for tax questions and advice.