Year-End Tax Moves to Make Before December 31, 2026
📋 General information, not tax advice. Confirm specifics with the IRS or a tax professional — rules vary by situation and state.
The calendar is a hard deadline for most tax savings. Almost everything that lowers your 2026 tax bill has to happen by December 31 — maxing your 401(k), harvesting investment losses, taking your RMD, spending your FSA, and making charitable gifts. Only a couple of moves (IRA and HSA contributions) can wait until April. Here's the full checklist, in plain English, with what's a hard year-end deadline and what isn't. For a broader list beyond taxes, see our year-end money moves.
Key Takeaways
- Most year-end tax moves must be done by December 31, 2026 — including 401(k) contributions, tax-loss harvesting, charitable gifts, required minimum distributions (RMDs), and spending down a flexible spending account (FSA).
- For 2026, the employee 401(k) contribution limit is $24,500, with an extra $8,000 catch-up if you're 50 or older (and a larger 'super catch-up' for ages 60–63).
- Tax-loss harvesting means selling investments that are down to realize a loss, which offsets realized capital gains dollar-for-dollar and up to $3,000 of ordinary income per year (with the rest carried forward).
- Starting with 2026 returns, a new above-the-line deduction lets non-itemizers deduct up to $1,000 in cash gifts to qualifying charities ($2,000 for married filing jointly).
Moves with a hard December 31 deadline
1. Max out (or boost) your 401(k)
The 2026 employee limit is $24,500, plus an $8,000 catch-up at 50+ (and a larger "super catch-up" at ages 60–63). Because 401(k) money comes out of payroll, you generally can't make a lump-sum top-up in April — if you want to hit the max, raise your contribution percentage on your remaining paychecks now. See the full 2026 contribution limits.
2. Harvest tax losses
If you hold investments that are down, selling them locks in a capital loss that offsets realized gains dollar-for-dollar, plus up to $3,000 of ordinary income per year (any extra carries forward to future years). The trade must settle by December 31 to count for 2026.
Watch the wash-sale rule: if you buy the same or a "substantially identical" security within 30 days before or after the sale, the IRS disallows the loss. Wait 31 days, or buy a similar-but-different fund to stay invested.
3. Take your Required Minimum Distribution (RMD)
If you're subject to RMDs from a traditional IRA or 401(k), take it by December 31 — missing it triggers a steep penalty. Your very first RMD can be delayed to April 1 of the next year, but that stacks two RMDs into one tax year and can bump your bracket, so most people take it on schedule.
4. Spend down your FSA
A healthcare Flexible Spending Account is usually "use it or lose it." Check your balance and spend on eligible expenses before year-end (some plans allow a small carryover or a short grace period into 2027 — check yours). An HSA, by contrast, rolls over and has an April deadline (see the 2026 HSA limits).
5. Give smart before you give
Starting with 2026 returns, non-itemizers can deduct up to $1,000 in cash charitable gifts ($2,000 married filing jointly) above the line. Itemizers can do more — and donating appreciated stock or using a donor-advised fund can avoid capital gains while capturing the deduction. All gifts must be made by December 31.
Separately, the annual gift-tax exclusion is $19,000 per recipient for 2026. It doesn't carry forward, so gifts to family you were planning anyway are best made before year-end.
6. Consider a Roth conversion
Converting traditional IRA dollars to a Roth is taxable now but grows tax-free later. A lower-income year, or a market dip, can make a conversion cheaper. It must be completed by December 31 to land in the 2026 tax year — run the numbers (or ask a pro) so you don't accidentally jump a bracket.
Moves you can still do after December 31
| Move | Deadline |
|---|---|
| IRA contribution (2026 tax year) | ~April 15, 2027 |
| HSA contribution (2026 tax year) | ~April 15, 2027 |
| SEP-IRA (self-employed) | Tax-filing deadline, incl. extensions |
Quick win: even if cash is tight now, you have until spring to fund an IRA or HSA for 2026 — so prioritize the hard-deadline items first and circle back to these.
Put Year-End Cash to Work
Harvested some losses or freed up cash? A high-yield savings account keeps your emergency fund earning while you plan next year's moves.
Best High-Yield Savings 2026 →Sources
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Compiled and reviewed by Mike Van Kempen. See how we research and score.
Frequently Asked Questions
What's the deadline for 2026 tax moves?
Most are December 31, 2026 — 401(k), tax-loss harvesting, charitable gifts, RMDs, FSA spending. IRA and HSA contributions for 2026 can wait until roughly April 15, 2027.
How much can I put in a 401(k) in 2026?
$24,500, plus $8,000 catch-up at 50+ (larger at 60–63). It's payroll-based, so adjust your remaining paychecks now to hit the max.
What is tax-loss harvesting?
Selling losing investments to realize a loss that offsets gains and up to $3,000 of income per year. Must settle by Dec 31, and mind the 30-day wash-sale rule.
Do I have to take my RMD by year-end?
Yes, by December 31 to avoid a penalty — except your first RMD, which can be delayed to April 1 (but that means two in one year).
Can I deduct charity if I take the standard deduction?
Starting in 2026, non-itemizers can deduct up to $1,000 in cash gifts ($2,000 MFJ). Gifts due by Dec 31. Confirm with the IRS.