What is the 2026 401(k) contribution limit?

The employee elective deferral limit for 401(k) plans is $24,500 for 2026, with an additional $8,000 catch-up contribution allowed for those 50 and older, for a total of $32,500.

When does my FSA money expire?

Most employer FSAs either expire on December 31 with no rollover, or allow a grace period into mid-March, or permit a limited carryover (up to $660 in 2026) into the next plan year. Check your specific plan document since employers choose only one of these options.

What is tax-loss harvesting and when should I do it?

Tax-loss harvesting means selling investments at a loss in a taxable brokerage account to offset capital gains elsewhere in your portfolio, plus up to $3,000 of ordinary income. It must be completed by December 31, and you must avoid buying a substantially identical security within 30 days (the wash-sale rule).

How much can I gift tax-free in 2026?

The annual gift tax exclusion for 2026 is $19,000 per recipient ($38,000 for married couples splitting gifts). Gifts must be completed by December 31 to count toward the current year's exclusion.

Do I need to take a Required Minimum Distribution (RMD)?

If you are 73 or older (or inherited certain retirement accounts), you generally must withdraw a Required Minimum Distribution from tax-deferred accounts by December 31 or face a 25% IRS penalty on the amount not withdrawn (reduced to 10% if corrected promptly).

Can I still contribute to an IRA for this tax year in December?

Yes — unlike 401(k)s, IRA contributions for a given tax year can be made until the tax filing deadline the following April, so December is not your final deadline, but it's a good checkpoint to confirm you're on pace to max out.

End-of-Year Financial Checklist for 2026

The gap between people who finish the year financially ahead and everyone else usually comes down to a short list of deadline-driven moves made in the final weeks of December. Miss the window and the opportunity resets — or disappears — for a full year. Here are twelve specific actions worth checking off, each with the real dollar stakes attached.

1. Max Out (or Boost) Your 401(k)

The 2026 employee deferral limit is $24,500, plus a $8,000 catch-up if you're 50+, for a total of $32,500. If your December paycheck still has room before hitting the limit, increasing your contribution percentage for the last pay period or two is one of the highest-leverage moves available — every dollar deferred reduces this year's taxable income dollar-for-dollar.

Deadline	Move	Approx. Dollar Impact
Dec 31	Max 401(k) deferral	Up to $32,500 tax-deferred
Dec 31	Tax-loss harvesting	Offset gains + $3,000 income
Dec 31	FSA spend-down	Avoid forfeiting unused balance
Dec 31	Charitable giving	Itemized deduction if applicable
Dec 31	Annual gift exclusion	$19,000 per recipient tax-free
April 15	IRA contribution (prior year)	Up to $7,500 (under 50)

2. Harvest Investment Losses

If any taxable brokerage positions are down for the year, selling them locks in a capital loss that can offset capital gains elsewhere — plus up to $3,000 against ordinary income, with any excess carried forward indefinitely. The catch is the wash-sale rule: you can't buy a "substantially identical" security within 30 days before or after the sale, or the loss is disallowed. This only applies to taxable accounts, not 401(k)s or IRAs.

3. Spend Down Your FSA

Flexible Spending Account balances are famously "use it or lose it." Depending on your employer's plan design, unused funds either vanish entirely on December 31, carry over up to $660, or grant a grace period into mid-March. Check eyewear, dental work, over-the-counter medication, and first-aid supplies as fast ways to use remaining balances before the deadline.

💡 Real example: An employee with $1,200 in their FSA and a no-rollover plan who forgets to spend it forfeits the entire $1,200 back to their employer on January 1 — money already deducted from their paycheck, gone for nothing.

4. Take Your Required Minimum Distribution (RMD)

If you're 73 or older, the IRS requires you to withdraw a minimum amount from tax-deferred retirement accounts by December 31 (the first year allows a grace period into April). Miss it, and the penalty is steep: 25% of the amount you should have withdrawn, reduced to 10% if corrected within two years. There's no upside to waiting on this one.

5. Rebalance Your Portfolio and Review Beneficiaries

A strong year for stocks can leave your portfolio more equity-heavy than your target allocation. December is a natural checkpoint to rebalance back toward your intended stock/bond mix. While you're in there, confirm beneficiary designations on retirement accounts and life insurance — these override your will, and outdated ones (ex-spouses, deceased relatives) are one of the most common estate-planning mistakes.

6. Use Your Annual Gift Tax Exclusion

You can gift up to $19,000 per recipient in 2026 ($38,000 for a married couple splitting gifts) without touching your lifetime estate and gift tax exemption or filing a gift tax return. This resets every January 1 — an unused exclusion doesn't carry forward, so gifts intended for family members are worth completing before December 31 if that's part of your plan.

7. Confirm Charitable Contributions Are Deductible

With the standard deduction at $15,000 (single) / $30,000 (married) for 2026, many filers no longer itemize, meaning charitable gifts provide no additional tax benefit unless total itemized deductions exceed the standard amount. "Bunching" two years of giving into one calendar year (or using a donor-advised fund) is a common strategy to clear that threshold periodically rather than giving small amounts every year that never add up to a deduction.