Before December 31, review these tax moves — once the calendar year closes, most of these opportunities disappear. Smart year-end tax planning can save you $500-$5,000+ depending on your situation.
Year-End Tax Checklist
401(k), HSA, and other limits below are 2026 figures.
#
Action
Deadline
Potential Savings
1
Max out 401(k) contributions
Dec 31
$3,500-$8,000+ in tax savings
2
Harvest investment losses
Dec 31
Offset gains + $3,000 vs. income
3
Make charitable donations
Dec 31
Deduction if itemizing
4
Spend your FSA balance
Dec 31 (or grace period)
Don’t lose unspent FSA money
5
Contribute to HSA
April 15 (but plan by Dec 31)
$4,400-$8,750 deduction
6
Consider Roth conversion
Dec 31
Future tax-free withdrawals
7
Bunch deductions if near threshold
Dec 31
Push over standard deduction
8
Fund 529 plan
Dec 31
State tax deduction (some states)
9
Review withholding (W-4)
Dec 31
Avoid big bill or excessive refund
10
Take Required Minimum Distributions (if 73+)
Dec 31
Avoid penalty on missed RMD
401(k) Year-End Strategies
Strategy
How
Impact
Max out contributions
Increase payroll contribution % for remaining paychecks
Up to $24,500-$35,750 tax-deferred (2026 limits, including age-based catch-ups)
Catch-up contributions (50+)
Verify you’re contributing the extra amount
+$8,000 (age 50-59, 64+) or +$11,250 (ages 60-63)
Check employer match
Ensure you’ve contributed enough to get full match
Free money
Consider Roth vs. Traditional
Switch contribution type if tax situation changed
Tax diversification
Tax-Loss Harvesting Guide
Step
Action
1
Review investment portfolio for positions with losses
2
Sell losing positions to realize the loss
3
Use losses to offset capital gains from the year
4
Deduct up to $3,000 of net losses against ordinary income
5
Carry forward any remaining losses to future years
6
Wait 31+ days before buying the same security (wash-sale rule)
7
Consider buying a similar (but not identical) investment immediately
Example:
Item
Amount
Capital gains from selling Fund A
+$8,000
Capital loss from selling Fund B
-$5,000
Net capital gain
$3,000 (taxed at capital gains rate)
Without harvesting Fund B loss
Full $8,000 taxed
Tax saved (15% cap gains rate)
$750
Charitable Giving Strategies
Strategy
How It Works
Donate appreciated stock
Avoid capital gains tax + get full deduction
Bunch donations (every other year)
Exceeds standard deduction threshold in one year
Donor-advised fund
Contribute a lump sum this year, distribute to charities over time
Qualified Charitable Distribution (70½+)
Donate from IRA directly — counts toward RMD, not taxable income
FSA: Use It or Lose It
FSA Type
Deadline
Action
Healthcare FSA
Dec 31 (+ grace period if employer offers)
Schedule appointments, buy eligible items
Dependent Care FSA
Dec 31
Ensure all childcare expenses are documented
Limited Purpose FSA
Dec 31
Dental and vision expenses only
Roth Conversion Opportunity
Best Time to Convert
Why
Income is lower than usual (job change, sabbatical)
Lower tax bracket = cheaper conversion
Early retirement years before Social Security
Income gap = low tax rate
Market is down
Convert the same number of shares at a lower tax cost
You expect higher taxes in the future
Lock in today’s rate
The Bottom Line
December is the last chance to reduce your current year tax bill. The biggest moves: maximize 401(k) contributions, harvest investment losses, make charitable donations (especially appreciated stock), spend your FSA, and consider Roth conversions in low-income years. These aren’t aggressive strategies — they’re standard tax planning that everyone should review annually.
WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy
