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By Brian McGeough, CFP® & Relationship Manager
As 2026 comes to a close, here are the items to take care of before December 31.
Retirement Accounts
Max out your workplace retirement plan. The 2026 employee contribution limit is $24,500. If you're 50 or older you can add a catch-up contribution of $8,000. If you're 60–63 and your plan offers the “super catch-up,” that amount is $11,250 instead.
NEW THIS YEAR – Roth catch-up rule. If your 2025 FICA wages from your employer (Box 3 of your W-2) were over $150,000, any catch-up contributions you make in 2026 must go in as Roth (after-tax).
Required Minimum Distributions (RMDs). Take your full RMD by December 31, 2026. If you turned 73 this year, you can wait until April 1, 2027 for your first one, but you would then take two RMDs in 2027. If you've inherited an IRA, check whether you owe an annual RMD on it as well.
Roth conversions. Consider a conversion if this is a lower-income year. Conversions must be done by December 31. Check with your accountant first: the added taxable income can affect your senior deduction, your SALT deduction cap, and your Medicare premiums (IRMAA, which looks back two years).
Investments & Taxes
Tax-loss harvesting. Sell positions at a loss to offset gains you've already realized. Talk with your advisor about accounts held outside Chatham Wealth too, since those may also have losses to harvest. Watch the 30-day wash-sale rule, which also applies to purchases in your IRAs.
Rebalance. Bring your asset allocation back to its target.
Mutual fund capital gain distributions. Before buying mutual funds in a taxable account in December, check the fund's distribution date so you don't buy a tax bill.
Fourth-quarter estimated taxes. If you did a Roth conversion, sold a business or realized large gains this year, make sure your January 15 estimated payment or year-end withholding covers it.
Charitable Giving – Deadline December 31, 2026
The rules changed this year. Some things to consider:
– New for 2026: If you itemize, only the part of your giving above 0.5% of your AGI is deductible. If you're in the top tax bracket, the deduction's value is capped at 35%. If you don't itemize, you can now deduct up to $1,000 in cash gifts ($2,000 if married filing jointly).
– QCDs: If you're 70½ or older, you can give up to $111,000 straight from your IRA. The gift counts toward your RMD, stays out of your income, and isn't affected by the new 0.5% floor. QCDs can't go to donor-advised funds.
– Appreciated stock: Donate it directly to the charity so you avoid paying capital gains tax on the growth.
– Bunching: If you itemize, consider combining several years of gifts into one year, for example through a donor-advised fund. This is more useful now that the 0.5% floor applies each year.
Gifting & Estate Planning
Annual exclusion gifts. You can give up to $19,000 per recipient in 2026 ($38,000 for married couples) without using any of your lifetime exemption. Unused exclusions don't carry over, so gifts must be completed by December 31.
Review your estate plan. The federal estate and gift tax exemption is now $15 million per person ($30 million per couple) and is permanent under the new tax law. That change is a good reason to review your documents. Keep in mind that New Jersey's inheritance tax still applies to transfers to some beneficiaries, such as siblings, nieces and nephews.
Check your beneficiary designations. Confirm the beneficiaries on your IRAs, 401(k)s, life insurance and transfer-on-death accounts are current.
Family & Benefits
Trump accounts. A Trump account can be opened for any child who is under 18 at the end of the year the account is opened. Children born in 2025 through 2028 who are U.S. citizens with a Social Security number are also eligible for a $1,000 federal deposit. To open one, file IRS Form 4547 or apply at trumpaccounts.gov. The election must be made by December 31 of the year the child turns 17.
Use your FSA balance. Spend down flexible spending account funds before they're lost. Check whether your plan offers a grace period or carryover.
Medicare open enrollment. Review your Medicare Advantage or Part D coverage before open enrollment closes on December 7.
Good to Know: Not a December 31 Deadline
IRA and HSA contributions for 2026 can be made until April 15, 2027. The 2026 HSA limit is $4,400 for self-only coverage and $8,750 for family coverage, plus $1,000 if you're 55 or older.
If you have any questions about what needs to be done before year-end, please reach out to your advisor. At Chatham Wealth, we'll be working on many of these items for you, but it's always good to talk before year-end so we're on the same page.
This checklist is for general information only and is not tax or legal advice. Please consult your tax professional about your specific situation.
Brian McGeough, CFP®
Relationship Manager
Disclosure
Chatham Wealth Management is registered as an investment adviser with the SEC. SEC registration does not constitute an endorsement of the firm by the Commission, nor does it indicate that the adviser has attained a particular level of skill or ability.
Past performance may not be indicative of future results. All investment strategies have the potential for profit or loss. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be profitable for a client's portfolio.