As we begin fourth quarter, now is a good time to review our year-end financial planning checklist for items that may need attention before December 31. Whether you are currently saving for retirement or are in distribution mode, this checklist can help identify opportunities to avoid missed deadlines and stay on course with your financial plan.
Savings Checklist
Many contribution limits and income thresholds increased for 2026. Be sure to:
- Review workplace retirement plan contributions. Confirm you are on track with your targeted 401(k), 403(b), 457, or other employer-sponsored retirement plan contributions for the year.
- Review health savings account contributions. If you are eligible for an HSA, verify progress towards meeting your targeted contribution level.
- Consider IRA contribution opportunities. If making traditional IRA or Roth IRA contributions for 2026, you have some extra time. These contributions can be made up until April 15, 2027.
- Evaluate catch-up contributions if you are age 50 or older (55+ for HSAs), as appropriate for your situation. Reminder that 2026 is the first year all highly-compensated employees are required to complete catch-up contributions as Roth. Now is a great time to double-check any changes are set up correctly.
- Use flexible spending account funds. If you have a flexible spending account, confirm whether unused funds must be spent before year-end or whether a grace period or carryover applies.
Distributions & Gifting Checklist
- Complete required minimum distributions, if applicable. Don’t forget about inherited IRAs! Verify the amount and ensure all distributions are processed by December 31 to avoid penalties.
- Finalize qualified charitable distributions. If you are age 70½ or older and charitably inclined, a QCD from an IRA may be worth discussing. We recommend gifting any QCD checks by November 1. This will give the charity time to cash the check before year end. QCD checks that aren’t cashed by December 31 will not count towards 2026 for tax planning purposes. This is especially important to keep in mind if utilizing QCDs as part of your required minimum distribution.
- Make a plan for additional gifts. Consider annual exclusion amounts ($19,000 per person for 2026) for gifts to friends, family, or individuals. In coordination with QCDs, or for those who are ineligible, review other charitable strategies such as cash gifts, appreciated securities, or donor-advised fund contributions before year-end deadlines. New for 2026, qualified cash donations up to $1,000 per person are tax deductible without itemizing.
Additional Tax Planning Opportunities
- Evaluate Roth conversion opportunities. If Roth conversions are part of your financial plan for this year, we recommend completing any conversion requests by December 15. This will help you stay ahead of any year-end processing delays.
- Revisit capital gains and losses. Review total income for the year to identify opportunities within your taxable investment accounts to realize gains, harvest losses, or rebalance in a tax-efficient way. We are currently seeing more tax loss harvesting opportunities with bond funds due to rising interest rates. If you proceed with harvesting losses, be mindul of wash sale rules.
- Verify tax withholding and estimated payments are on track to help avoid surprises at tax time. Fourth quarter estimated tax payments are due by January 15, 2027.
Be proactive in your planning for smooth sailing into 2027. Some strategies require coordination with custodians, tax professionals, employers, or charitable organizations, and waiting until the final days of the year may limit available options. Need some help completing your year-end financial planning checklist? Set up a time to talk through our Contact Us page.
Megan Coyne, CFP®, provides fee-only financial planning and investment advice at Keener Financial Planning. She guides clients on retirement planning, investing more effectively, tax-efficiency, and more to help them create the life they envision.