Year-End Tax Planning Checklist for 2026: 10 Moves to Review Before December 31

Most tax savings for 2026 have to be locked in by December 31. Once the calendar turns, your options shrink to a few items like IRA and HSA contributions. If your finances include stock options, a business, concentrated investments, or estate planning questions, the weeks between now and year end are when planning pays off most.

This is also the first full year under the One, Big, Beautiful Bill Act changes, which raised the standard deduction and the SALT cap and changed how charitable gifts are deducted. Below is the checklist we use as a starting point, along with the 2026 figures published by the IRS.

What should be on a year-end tax planning checklist?

A strong year-end checklist covers five areas: investments, retirement accounts, charitable giving, equity compensation, and business income. Here is the quick version.

Harvest investment losses, and watch the wash sale rule
Model a Roth conversion to fill your current tax bracket
Take required minimum distributions (RMDs), and consider a QCD
Maximize 401(k), IRA, and HSA contributions
Bunch charitable gifts or fund a donor-advised fund
Review equity compensation: ISOs and AMT, RSU withholding, ESPP sales
Check estimated payments against the safe harbor
Use the $19,000 annual gift exclusion
Business owners: retirement plans and income or expense timing
Review beneficiary designations

How does tax-loss harvesting work, and what is the wash sale rule?

Tax-loss harvesting means selling an investment at a loss to offset realized capital gains. Losses offset gains first, then up to $3,000 of ordinary income, and any remainder carries forward to future years.

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. That window includes purchases in IRAs and a spouse's accounts, so automatic dividend reinvestment can trigger it by accident. We typically replace a sold position with a similar, but not substantially identical, holding to stay invested.

Should I do a Roth conversion before year end?

A Roth conversion can make sense when this year's income is lower than you expect in the future. The idea is bracket filling: convert just enough of a traditional IRA to use up the rest of your current bracket, pay the tax now, and let future growth be tax free.

Conversions must be completed by December 31 to count for 2026, and they cannot be undone. Watch the side effects too. Added income can raise Medicare premiums two years later, reduce the new SALT deduction (see below), and push more investment income into the 3.8% net investment income tax.

What do I need to know about RMDs and QCDs?

If you are subject to required minimum distributions, take them by December 31 to avoid an excise tax. If you are age 70½ or older and charitably inclined, a qualified charitable distribution (QCD) sends money straight from your IRA to a charity.

For 2026, the QCD limit is $111,000 per person. A QCD counts toward your RMD and is excluded from income entirely, which matters more now that itemized charitable deductions face new limits.

What are the 2026 retirement and HSA contribution limits?

The IRS set these 2026 limits:

401(k), 403(b), and most 457 plans: $24,500 in employee deferrals, plus an $8,000 catch-up at age 50 or older. Participants aged 60 through 63 have a higher catch-up of $11,250.
IRAs: $7,500, plus a $1,100 catch-up at age 50 or older.
HSAs: $4,400 for self-only coverage and $8,750 for family coverage, plus $1,000 at age 55 or older.

Workplace plan deferrals generally must come out of paychecks by December 31, so check your final payroll elections now. IRA and HSA contributions for 2026 can be made until the April 15, 2027 filing deadline.

How should I plan charitable gifts under the new rules?

Starting in 2026, itemizers can deduct charitable gifts only to the extent they exceed 0.5% of AGI, and taxpayers in the top bracket see the deduction's value limited. Meanwhile, the 2026 standard deduction is $32,200 for married couples filing jointly and $16,100 for single filers, so many households will not itemize every year.

Bunching helps. Combine two or more years of giving into one year, often through a donor-advised fund, so you clear the standard deduction in that year and take it in the off years. Donating appreciated stock you have held more than a year can also avoid the capital gains tax on the growth.

How do stock options, RSUs, and ESPPs affect year-end planning?

Equity compensation often drives the biggest year-end decisions.

ISOs: Exercising and holding incentive stock options can trigger alternative minimum tax (AMT). We model how many shares you can exercise this year while staying under the AMT threshold.
RSUs: Vesting shares are taxed as wages, and default withholding is often lower than your actual rate. Check whether you need to send more to the IRS before year end.
ESPP: Know which shares have reached a qualifying disposition, and coordinate any sales with your other gains and losses.

Am I on track with estimated payments and the safe harbor?

You generally avoid an underpayment penalty if withholding and estimated payments cover at least 90% of this year's tax or 100% of last year's tax. If your prior year AGI was over $150,000, the prior year test rises to 110%.

The fourth quarter estimate is due January 15, 2027. Extra withholding from a paycheck or IRA distribution before year end is treated as paid evenly during the year, which can fix a shortfall from earlier quarters.

How much can I give without filing a gift tax return?

For 2026, you can give up to $19,000 to any one person without using your lifetime exemption, and married couples can give $38,000 per recipient by gift splitting. Annual exclusion gifts do not carry over, so unused 2026 amounts are gone after December 31. The basic estate and gift tax exclusion is $15,000,000 per person for 2026, which makes this a good time to revisit your estate plan.

What year-end moves should business owners consider?

Business owners have the most levers at year end.

Retirement plans: A Solo 401(k) or SEP IRA can shelter significant income. A Solo 401(k) generally must be set up by year end for employee deferrals, while a SEP can often be established and funded by your filing deadline.
Timing income and expenses: Cash basis businesses may defer billing or accelerate deductible expenses and equipment purchases when that lowers tax overall.
SALT: For 2026 the SALT deduction cap is $40,400, phased down when modified AGI exceeds $505,000, but not below $10,000. Owners near that range may benefit from managing income or using a state pass-through entity tax election where available.

Why review beneficiary designations at year end?

Beneficiary forms on retirement accounts and life insurance override your will. Year end is a natural checkpoint to confirm they reflect marriages, divorces, births, and deaths, and that they match your estate plan.

Frequently Asked Questions

What is the deadline for most year-end tax moves?

December 31, 2026. That includes tax-loss harvesting, Roth conversions, RMDs, QCDs, charitable gifts, and 401(k) deferrals. IRA and HSA contributions for 2026 can wait until April 15, 2027.

What is the 401(k) contribution limit for 2026?

$24,500, plus an $8,000 catch-up at age 50 or older, or $11,250 for ages 60 through 63.

What is the QCD limit for 2026?

$111,000 per person age 70½ or older, sent directly from an IRA to a qualified charity.

What is the SALT deduction cap for 2026?

$40,400, or $20,200 if married filing separately, reduced when modified AGI exceeds $505,000 but not below $10,000.

What is the annual gift tax exclusion for 2026?

$19,000 per recipient, or $38,000 for married couples who split gifts.

What should you watch for in 2027?

The IRS has already released its 2027 inflation adjustments (Revenue Procedure 2026-35, published November 5, 2026). The standard deduction rises to $33,200 for married couples filing jointly and $16,600 for single filers, and the annual gift exclusion increases to $20,000 per recipient. The One, Big, Beautiful Bill Act provisions continue: the SALT cap increases 1% a year through 2029 with its income phase-down, and the 0.5% of AGI floor on itemized charitable gifts still applies. Several 2026 moves also shape 2027, including Roth conversions, charitable bunching, and setting next year's estimated payments. We will update our planning as new IRS guidance arrives.

Let's Plan Your Year End Together

Every item above interacts with the others, and the right answer depends on your full picture. At Generous Wealth Management, we are a fee-only firm, so we do not earn commissions or sell products. Our team, which includes EAs and/or CPAs, coordinates tax planning with your investments and estate plan. If you would like a second set of eyes before December 31, we would be glad to talk.

Important Information

Generous Wealth Management LLC is a state-registered investment adviser registered in Massachusetts and in other states where required. Registration does not imply a certain level of skill or training. This article is general educational information, not personalized investment, tax, or legal advice. Tax figures, limits, and rules shown here reflect the law and IRS guidance as of November 6, 2026. They may change because of new legislation, annual inflation adjustments, or new IRS guidance. Please consult a qualified tax professional about your situation before acting. Our Form ADV and firm information (CRD 318091) are available at adviserinfo.sec.gov.