2026 Year-End Tax Planning Checklist: 10 Moves Before December 31
Quick Answer
Before December 31, 2026: max out your 401(k) ($24,500) and HSA ($4,400/$8,750), harvest investment losses, take RMDs if you're 73+, bunch charitable gifts, spend down your FSA, and claim new OBBBA deductions while they last.
The Checklist
1. Max Out Your 401(k) — $24,500
Check your year-to-date contributions on your last pay stub. If you're short of $24,500 ($32,500 at 50+, $35,750 at 60-63), bump your deferral percentage for remaining paychecks. Every pre-tax dollar cuts 2026 taxable income.
2. Top Up Your HSA — $4,400 / $8,750
The only triple-tax-advantaged account: deductible in, tax-free growth, tax-free out for medical costs. 2026 limits: $4,400 self-only, $8,750 family (+$1,000 catch-up at 55+). Unlike FSAs, HSA money never expires.
3. Fund Your IRA — $7,500 (Deadline: April 2027)
IRAs get an extension — you have until April 15, 2027 to contribute for 2026. But don't wait: $7,500 ($8,600 at 50+) into a Traditional IRA may be deductible; Roth IRA phases out above $153,000 single / $242,000 joint.
4. Harvest Investment Losses
Sell losing positions before December 31 to offset gains — up to $3,000 of net losses can offset ordinary income yearly, the rest carries forward. Watch the wash-sale rule: don't rebuy the same security within 30 days.
5. Take Your RMD (Age 73+)
Required minimum distributions from traditional IRAs/401(k)s must come out by December 31 — the penalty for missing is 25% of the amount not taken. Consider a qualified charitable distribution (QCD): donate up to $108,000 directly from your IRA and it never hits your taxable income.
6. Bunch Charitable Gifts
With the 2026 standard deduction at $16,100 single / $32,200 joint, small annual gifts often don't beat itemizing. Bunching — combining two years of giving into one December — can push you over the line. Donor-advised funds make this easy.
7. Spend Down Your FSA
Health FSAs are mostly use-it-or-lose-it: only up to $640 rolls over. Schedule the eye exam, refill prescriptions, buy the glasses — before New Year's Eve.
8. Claim New OBBBA Deductions
2026 is year two of four for the temporary OBBBA breaks — don't leave them on the table:
- No tax on overtime — up to $12,500/$25,000 of FLSA premium
- Auto loan interest — up to $10,000 on new US-assembled vehicles
- No tax on tips — up to $25,000 of reported tip income
- Senior deduction — extra $6,000 at 65+
9. Run a Withholding Check
Use the IRS Tax Withholding Estimator and file a new W-4 if you're short — December withholding still counts for all of 2026. See our W-4 year-end guide.
10. Prepay or Defer Strategically
Expect higher income in 2027? Accelerate deductions into 2026 (January mortgage payment in December, business equipment purchases). Expect lower income next year? Defer income — delay that freelance invoice to January.
Deadlines at a Glance
| Move | Deadline |
|---|---|
| 401(k) / HSA payroll contributions | Dec 31, 2026 (last paycheck) |
| Tax-loss harvesting | Dec 31, 2026 |
| RMDs | Dec 31, 2026 |
| Charitable gifts | Dec 31, 2026 |
| FSA spending | Dec 31, 2026 |
| IRA contributions | Apr 15, 2027 |
| HSA direct (non-payroll) contributions | Apr 15, 2027 |
Frequently Asked Questions (FAQ)
I can't max everything — what matters most?
Priority order for most people: 1) 401(k) to the employer match (free money), 2) HSA to the max (triple tax benefit), 3) Roth IRA, 4) rest of 401(k).
Does tax-loss harvesting work in retirement accounts?
No — only taxable brokerage accounts. Losses in IRAs and 401(k)s can't be harvested.
What's the 2026 standard deduction?
$16,100 single / $32,200 married filing jointly. Compare your itemized total (SALT capped at $40,400 for 2026) before bunching charitable gifts.
I turned 73 this year — when's my first RMD due?
You get a one-time extension to April 1, 2027 for your first RMD — but then you'd take two RMDs in 2027, bunching the income. Most advisers suggest taking the 2026 RMD by Dec 31, 2026.
Are the OBBBA deductions really expiring?
Yes — the overtime, tip, auto loan interest, and senior deductions cover tax years 2025-2028 only, unless Congress extends them.
Explore Related Paycheck & Tax Calculations
401(k) Growth Calculator
See what maxing out compounds into
Year-End W-4 Check
Fix withholding before December 31
Sources: IRS Notice 2025-67 (2026 retirement limits), Rev. Proc. 2025-19 (HSA), Rev. Proc. 2025-32 (standard deduction), IRS RMD rules. This article is for education only, not tax advice.