Year-end tax planning isn't just for the wealthy. There are specific, actionable moves that anyone with a 401(k), investments, or a side income can make before the calendar flips — and most people miss them simply because nobody told them.
The 2026 contribution limit is $23,500 (or $31,000 if you're 50 or older). Every dollar you contribute reduces your taxable income dollar-for-dollar. If you haven't hit the limit yet, ask your payroll department to increase your contribution for the remaining pay periods. It's the simplest tax deduction available.
Tax-loss harvesting means selling investments that are currently worth less than you paid for them, then using those losses to offset capital gains elsewhere in your portfolio. You can offset up to $3,000 in ordinary income per year on top of that. The key: you can immediately reinvest in a similar (but not identical) fund to stay in the market.
If you're planning to donate, consider donating appreciated stock directly instead of cash. You avoid paying capital gains tax on the appreciation, and you still get the full deduction. For donors who are 70½ or older, a Qualified Charitable Distribution from your IRA counts toward your Required Minimum Distribution and is excluded from taxable income entirely.
If you expect to be in a higher tax bracket in future years — or if you had an unusually low-income year — converting some traditional IRA funds to a Roth IRA can lock in a lower tax rate now. You'll pay tax on the conversion, but future growth and withdrawals are completely tax-free. This is especially powerful for people in their late 50s and early 60s before Social Security and Required Minimum Distributions begin.
If you have a high-deductible health plan, an HSA is the only account that gives you a tax deduction going in, tax-free growth, and tax-free withdrawals for medical expenses. The 2026 limit is $4,300 for individuals and $8,550 for families. After age 65, you can withdraw for any purpose (not just medical) and pay only ordinary income tax — similar to a traditional IRA.
Book a free call before year-end and we'll review your specific situation — there may be savings you're leaving on the table.
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