Year-End Money Moves to Make Before December 31, 2026
📋 For informational purposes only — not tax or financial advice. Confirm specifics with a CPA or advisor.
A few deliberate moves in the last weeks of the year can cut your 2026 tax bill, boost your retirement balance, and set up a cleaner January. Some have a hard December 31 deadline (401(k), FSA, tax-loss harvesting, RMDs); others you can finish by the April tax deadline. Here's the full checklist, in priority order. See every current benchmark in our Personal Finance Statistics Hub →
1. Max Out Your 401(k)
Deadline: Dec 31 (payroll)Your 401(k) contributions have to come out of your paychecks by December 31, so this is the one with the tightest deadline. Check how much you've contributed year-to-date, and if you're short of the limit, raise your contribution percentage for your remaining paychecks. Even a few extra percent now is pre-tax money that lowers your 2026 taxable income. At minimum, contribute enough to capture your full employer match — it's an instant 50–100% return you forfeit if you miss it.
2026 limit: $24,500 ($32,500 if 50+, or up to $35,750 with the SECURE 2.0 super catch-up at ages 60–63). See the full 2026 contribution limits.
2. Spend Your FSA Balance
Deadline: Dec 31 (most plans)Most health Flexible Spending Accounts are use-it-or-lose-it — any balance left on December 31 is forfeited (some plans offer a grace period into March or a limited carryover, so check yours). Burn down what's left on eligible expenses: prescriptions, glasses or contacts, dental work, a dentist or doctor visit you've been putting off, or FSA-eligible products like sunscreen, first-aid supplies, and thermometers.
3. Harvest Tax Losses
Deadline: Dec 31If you hold taxable investments that are down, selling them locks in a capital loss that offsets capital gains — plus up to $3,000 of ordinary income per year, with the rest carrying forward. The sale must settle by December 31 to count for 2026. Mind the wash-sale rule: you can't buy the same or a "substantially identical" security within 30 days before or after, or the loss is disallowed. Most robo-advisors do this automatically year-round.
Heads up: tax-loss harvesting only applies to taxable brokerage accounts — not your IRA or 401(k), where sales aren't taxable events.
4. Take Your RMDs
Deadline: Dec 31If you're 73 or older (or inherited certain retirement accounts), you must take your Required Minimum Distribution by December 31. Missing it triggers a steep penalty — up to 25% of the amount you failed to withdraw (reduced to 10% if corrected promptly). If this is your first RMD year, you technically have until April 1, but taking two distributions in one year can spike your tax bill, so most people take the first one by December 31 anyway.
5. Make Charitable Contributions
Deadline: Dec 31Donations must be made by December 31 to count for your 2026 return. If you itemize, consider "bunching" several years of giving into one year to clear the standard deduction, donating appreciated stock (you skip the capital-gains tax and still deduct full value), or — if you're 70½+ — a Qualified Charitable Distribution straight from your IRA, which can satisfy your RMD tax-free.
6. Consider a Roth Conversion
Deadline: Dec 31A Roth conversion moves money from a Traditional IRA to a Roth, paying income tax now for tax-free growth later. It's most attractive in a low-income year, in early retirement before Social Security and RMDs kick in, or when the market is down (you convert more shares for the same tax). The conversion must be done by December 31 to count for 2026 — and because it raises this year's taxable income, run the math (ideally with an advisor) first.
7. Fund Your IRA and HSA
Flexible: until April 2027Good news — these two don't have a December 31 deadline. You can contribute to a Traditional or Roth IRA ($7,500 for 2026, $8,600 if 50+) and your HSA ($4,400 self / $8,750 family) right up until the tax-filing deadline (around April 15, 2027) and still have it count for 2026. The HSA is especially worth maxing — it's the only account with a triple tax advantage.
8. Rebalance, Review & Protect
Flexible: anytimeFinally, a quick housekeeping pass: rebalance your portfolio back to your target allocation after a year of market moves, review and update beneficiaries on every account, and check whether your insurance keeps pace with your life. If you've had a kid, bought a home, or taken on debt this year, make sure you have enough term life insurance to cover it.
| Move | Deadline | Why It Matters |
|---|---|---|
| Max 401(k) | Dec 31 | Lowers 2026 taxable income; capture the match |
| Spend FSA | Dec 31 | Use-it-or-lose-it balance |
| Tax-loss harvest | Dec 31 | Offset gains + $3,000 of income |
| Take RMDs | Dec 31 | Avoid up to a 25% penalty |
| Charitable gifts | Dec 31 | 2026 deduction |
| Roth conversion | Dec 31 | Lock in a low-tax year |
| IRA / HSA | ~Apr 15, 2027 | More time — still counts for 2026 |
Put Your Year-End Savings to Work
A robo-advisor like Betterment automates tax-loss harvesting and rebalancing — two of the moves above — so they happen year-round without you lifting a finger.
Read Betterment Review →Frequently Asked Questions
What financial moves should I make before the end of 2026?
Max your 401(k) through December 31 payroll, spend your FSA, harvest tax losses, take any RMDs, make charitable gifts, and consider a Roth conversion. IRA and HSA contributions have until the April tax deadline.
When is the deadline to contribute to a 401(k) vs an IRA?
401(k): December 31, 2026 (via payroll). IRA and HSA: around April 15, 2027, and still counts for the 2026 tax year.
What is tax-loss harvesting?
Selling down investments to realize a capital loss that offsets gains plus up to $3,000 of ordinary income (extra carries forward). Complete the sale by December 31 and avoid the 30-day wash-sale window. Robo-advisors often automate it.
Do I lose my FSA money at year-end?
Usually yes — most FSAs are use-it-or-lose-it by December 31, though some offer a grace period or a small carryover (~$660 for 2026). Check your plan and spend the balance on eligible expenses.
Should I do a Roth conversion before year-end?
Potentially, if you're in a low-income year, early retirement, or the market is down. You pay tax on the converted amount this year for tax-free growth later. It must be done by December 31 — run the tax math first.