End-of-year financial checklist for 2026

A year-end financial review gives you an opportunity to take stock of your finances and make strategic moves before the calendar resets. From identifying potential tax-saving opportunities to reviewing your savings, retirement accounts and financial goals, taking action now can help you address potential gaps and start the new year with a plan.

This end-of-year financial checklist outlines 10 steps to consider before December 31 to help you close out 2026 and prepare for the year ahead.

1Plan ahead for your taxes

It can be tempting to put off thinking about taxes until filing season approaches. But reviewing key tax updates before the end of the year can help you identify potential planning opportunities, make informed decisions while there's still time to act and avoid surprises when it's time to file.

• Review annual IRS updates. Each year, the IRS updates a range of provisions like federal tax brackets, contribution limits, tax deductions and credits. Reviewing the latest IRS updates can help you see what's changed and how these changes can potentially affect your tax planning.
• Stay current on tax law changes. Several provisions of the One Big Beautiful Bill Act, or OBBBA, apply to the 2026 tax year and could affect your year-end planning and the return you file in 2027. Review the tax rules introduced by the OBBBA, and consider how they may affect your broader financial plan.
• Revisit the fundamentals. A quick refresher on tax basics—such as the difference between tax credits and deductions—can help you understand how different strategies can affect your tax bill.

2Maximize tax-advantaged accounts

Making the most of tax-advantaged accounts can help you build long-term savings while potentially providing valuable tax benefits. As you review your year-end finances, consider whether you have room to increase your contributions.

• Max out your employer-sponsored plan. For 2026, the maximum 401(k) contribution is $24,500 for those younger than 50. If contributing the maximum isn't achievable, consider contributing at least enough to receive your full employer match.
• Take advantage of catch-up contributions. If you're 50 or older, you're eligible to make catch-up contributions. This is a great way to catch up on retirement savings while reducing your tax burden.
• Consider a self-employed plan. If you earn income from consulting, freelancing or a side hustle, consider contributing to a retirement plan for the self-employed. Depending on the type of plan, you may be able to contribute as both employee and employer—potentially allowing you to save more for retirement.
• Further boost your savings. If you have funds to spare, consider an individual retirement account, or IRA. While both traditional and Roth IRAs can be valuable supplements to your workplace plan, traditional IRAs may offer immediate tax deductions.
• Keep contribution deadlines in mind. Many workplace retirement plan contributions must be made by December 31, while IRA contributions can generally be made through the following year's tax filing deadline. Deadlines vary by account and plan type, so check the rules that apply to you.

3Check in on workplace spending accounts

Workplace benefits like flexible spending accounts, or FSAs, and health savings accounts, or HSAs, offer valuable tax advantages, but they come with important contribution and spending rules. As the end of 2026 approaches, take some time to review your accounts.

• Make sure you haven't overfunded your HSA. Excess contributions that remain in your account may be subject to a 6% excise tax each year. If you've contributed too much, contact your HSA administrator to understand your options for correcting the excess.
• Use your FSA or risk losing it. Don't forget to spend your flexible dollars before the end of the year. Unused funds are generally forfeited, but some employers offer a grace period or allow a limited amount to carry over into the following plan year.

4Review your withholding and estimated taxes

Changes to your income or financial situation throughout the year can affect how much you owe in taxes. Before 2026 ends, review what you've already paid through withholding and estimated tax payments to see whether you need to make an adjustment.

• Check your tax withholding. If you changed jobs, received a raise, added a second source of income or experienced another major life change this year, your current withholding may no longer reflect your tax situation. Review your year-to-date withholding and consider whether you need to update your Form W-4.
• Revisit estimated tax payments. If you're self-employed or receive income that isn't subject to withholding like investment or rental income, review your estimated tax payments to make sure they're still on track.

Adding these steps to your annual financial planning checklist can help you identify a potential shortfall and reduce the risk of an unexpected tax bill or underpayment penalty when you file.

5Strengthen your financial foundation

When everyday expenses take up more of your budget, it can be harder to make progress toward other financial goals. End-of-year financial planning can be an opportunity to reduce costs, rebuild savings and make room for what matters most.

• Assess your financial picture. Take a closer look at where your money is going. Canceling unused subscriptions, comparing rates, consolidating services and paying down high-interest debt can free up money to put toward other priorities.
• Replenish your emergency fund. If you've tapped into your emergency fund this year, create a plan to rebuild it. Ideally, you should have at least 3 to 6 months of emergency savings set aside for the year ahead.
• Set new savings goals. Whether you're planning a vacation, saving to buy your first home or working toward another milestone, now is a great time to set your target and map out a plan to reach it.
• Make a plan for your refund. If you're expecting to get money back from the IRS, use this time to determine how to use your tax refund to further financial goals—such as paying down high-interest debt, boosting retirement contributions or growing your emergency fund. A formalized plan can prevent you from spending it unwisely when your refund arrives.

6Review retirement accounts

If you're in retirement, a year-end financial review is particularly important. Add the following steps to your year-end planning checklist to avoid penalties and keep future healthcare costs in check.

• Review your Medicare coverage. Medicare open enrollment runs from October 15 through December 7 each year, giving you an opportunity to review your health and prescription drug coverage and make changes for the year ahead.
• Monitor your modified adjusted gross income. For those enrolled in Medicare, the income-related monthly adjustment amount, or IRMAA, is based on your modified adjusted gross income, or MAGI, from 2 years earlier. This means your 2026 income will set your Medicare premiums in 2028, and even a modest increase in income could bump you into a higher IRMAA bracket and raise your future healthcare costs.
• Check required minimum distributions. If you're subject to required minimum distributions, or RMDs, confirm that you've taken all mandatory withdrawals before December 31. A missed RMD could be subject to a 25% penalty on the amount not withdrawn, although the tax may be reduced if the shortfall is corrected within the required time frame.

If you still need to take some or all of your RMDs, a qualified charitable distribution, or QCD, is one strategy to consider. A QCD can count toward your RMD while reducing your MAGI, helping to limit future IRMAA surcharges. For 2026, eligible IRA owners can make QCDs of up to $111,000 to qualified charities. Because QCDs are excluded from taxable income when requirements are met, they can provide a tax benefit even if you don't itemize deductions.

7Consider charitable giving

Charitable giving can be a meaningful way to support the causes you value while potentially reducing your taxable income. You can deduct cash or property contributions to qualified charitable organizations, but the tax benefit you receive depends on whether you take the standard deduction or itemize.

• If you take the standard deduction: Starting this year, you can deduct up to $1,000 in qualifying cash contributions—or $2,000 if you're married and filing jointly—without itemizing.
• If you itemize: Your charitable deductions are now subject to a new threshold. Generally, contributions are deductible only to the extent that they exceed 0.5% of your adjusted gross income. For taxpayers in the highest income tax bracket, new limits also apply to the tax benefit of itemized deductions.

These changes may affect the tax benefit of charitable gifts you make this year, making now a good time to review your giving strategy.

8Fund long-term family goals

The end of the year can be a good time to revisit your family's long-term financial goals and consider ways to support the next generation. Gifting and education savings are two strategies that can help you provide for children or grandchildren while supporting your broader financial plan.

• Consider annual gifting exclusions. For 2026, the IRS allows you to gift up to $19,000 per person, per year without triggering the federal gift tax. These gifts can reduce the size of your taxable estate while providing meaningful financial support to loved ones.
• Contribute to a 529 plan. This can be a powerful way to help fund your children's or grandchildren's education expenses. Earnings in a 529 plan grow tax-deferred, and withdrawals are generally federal income tax-free when used for qualified education expenses. Contributions are considered gifts for federal gift-tax purposes and count toward your annual gift-tax exclusion.

9Review important financial and legal documents

Now is also a good time to make sure your beneficiary designations and important legal documents still reflect your wishes, especially if you've experienced a major life change.

• Review key documents. Revisit your will, trust, powers of attorney and healthcare directives to make sure they're up to date and continue to reflect your wishes.
• Update beneficiary designations. It's important to remember that beneficiary designations generally take precedence over your will, which means outdated information could override your estate plan. Major life events like marriages, divorces, births and deaths are key triggers to review and update these designations.

10Reassess insurance coverage

Even the best financial plans can be undone if you don't have the right protection in place. The end of the year is a good time to review your insurance coverage and identify any potential risks.

• Close coverage gaps. Climate-related events—such as floods, wildfires and severe storms—are rising. Review your homeowners, renters and auto policies to confirm that coverage limits and exclusions still provide sufficient protection.
• Review your life insurance. Make sure your life insurance coverage still reflects your financial obligations and the needs of those who depend on you. Major life changes like marriage, divorce and the birth of a child are good times to revisit your coverage.
• Consider umbrella insurance. This relatively inexpensive extra layer of liability protection can safeguard your assets in the event of a lawsuit or large claim.
• Protect your income and savings. Disability insurance can help replace lost income if illness or injury prevents you from working, while long-term care insurance helps cover the costs of extended care needs that could otherwise draw down your savings.

The bottom line

An end-of-year financial review can help you identify opportunities, address potential gaps and prepare for the year ahead. As you work through your checklist, consider which steps make sense for your financial situation and longer-term goals.

If you have questions as you review your year-end finances, we can help you explore your options and consider how they fit into your broader financial goals.