Key takeaways
- 401(k) contributions for 2026 must be made through payroll by Dec. 31.
- IRA and HSA contributions for 2026 can be made until April 15, 2027.
- Selling losing investments can offset gains, but watch the wash-sale rule.
The end of the year is the last chance for many moves that affect your 2026 taxes. Here’s what to check.
1. Boost your 401(k) contributions
The 2026 limit is $24,500, or more with catch-up contributions if you’re 50 or older. Contributions must come through payroll by Dec. 31, so increase your rate now if you have room. See 2026 401(k) limits.
2. Plan IRA and HSA contributions
You have until April 15, 2027, to contribute for 2026: up to $7,500 to an IRA ($8,600 if 50+) and $4,400 or $8,750 to an HSA, depending on coverage.
3. Harvest investment losses
In a taxable brokerage account, selling investments at a loss can offset capital gains, plus up to $3,000 of ordinary income per year. Unused losses carry forward. Avoid buying the same or a “substantially identical” investment within 30 days before or after the sale, or the loss is disallowed under the wash-sale rule.
4. Use your FSA
Many health FSAs are “use it or lose it.” Check your balance and plan’s deadline. Some offer a grace period or a small rollover.
5. Take required minimum distributions
If you’re 73 or older, you generally must take your RMD from traditional IRAs and 401(k)s by Dec. 31. Missing it can trigger a penalty. Those 70½ or older can donate directly from an IRA to charity through a qualified charitable distribution, which counts toward the RMD.
6. Plan charitable giving
- If you don’t itemize: Starting in 2026, you can deduct up to $1,000 ($2,000 for joint filers) in cash gifts to qualifying charities.
- If you itemize: New for 2026, only charitable gifts above 0.5% of your adjusted gross income are deductible. “Bunching” several years of donations into one year, possibly through a donor-advised fund, may help.
7. Check your withholding
If you’re on track to owe, increase withholding for your final paychecks. If you’re getting a huge refund, adjust for next year. See our W-4 guide.
8. Consider timing income and expenses
If you’re self-employed, you may be able to time invoices or business purchases. If your income is near a phase-out threshold for a deduction or credit, a retirement contribution might lower it.
Not sure what applies? A tax professional can review your situation before year-end, when there’s still time to act.
WalletJolly may earn a commission from links on this page. Rates, prices and rules mentioned are current as of Oct. 28, 2026 and can change. This article is general information, not financial, tax, insurance or legal advice.
