10 Year-End Tax Moves to Make Before December 31

The holidays aren't the only thing coming up fast. December 31 is a hard deadline for many of the year's keytax-saving opportunities. And once it passes, most of them are gone until next year. What you contribute, withdraw, and give in the coming weeks can shape your finances for years. At Quotient Wealth Partners, we believe proactive tax planning is one of the most important ways to protect what you've built.

Year-end planning can lower your taxes and protect your retirement savings. Key moves include diversifying account types, maximizing retirement contributions, timing Roth conversions, optimizing charitable giving under the new OBBBA rules, and reviewing your estate plan.

Below are 10 year-end tax planning strategies worth discussing with your advisor before 2026 comes to a close.

1. How can diversifying your account types reduce your tax burden?

Spreading your savings across pre-tax accounts (like traditional IRAs), after-tax accounts (like brokerage accounts), and Roth accounts gives you flexibility in retirement. This diversification allows you to control which accounts you draw from each year, helping you manage your taxable income and reduce your lifetime tax burden.

2. How much can you contribute to your 401(k) in 2026?

Under IRS limits for 2026, you can defer up to $24,500 of your salary into your 401(k), with a combined limit of $72,000 when employer contributions are included. If you're 50 or older, you can add a catch-up contribution of up to $8,000. If you're between 60 and 63 and your plan allows it, a "super" catch-up contribution of up to $11,250 may be available instead. Maximizing these tax-advantaged opportunities, potentially across both traditional and Roth options, can meaningfully boost your retirement savings. Starting in 2026, anyone whose prior-year FICA wages were over $150,000 must make catch-up contributions as Roth.

3. Why does the order of your retirement withdrawals matter?

The order of your retirement withdrawals matters because the sequence and timing of each withdrawal shape your overall tax bill. Coordinating withdrawals across account types, timing when you claim Social Security, and planning Roth conversions strategically can help minimize taxes throughout retirement. This is where working closely with a financial advisor pays off: a coordinated withdrawal strategy protects more of what you've saved.

4. Is now a good time for a Roth conversion?

A Roth conversion may make sense now if you expect to be in a higher tax bracket in retirement than you are today. You pay tax on the converted amount today in exchange for tax-free withdrawals later. Since the One Big Beautiful Bill Act (OBBBA), signed in July 2025, made current tax rates permanent, the real question is how a conversion affects your income this year. The added income could shrink your state and local tax (SALT) deduction, reduce the new senior deduction, or raise your Medicare premiums down the road. Spreading conversions over several years can help you stay below these thresholds. Conversions must be completed by December 31 and can’t be reversed, so model the numbers with your advisor first.

5. How can strategic investment selling lower your capital gains taxes?

Strategic selling can lower your capital gains taxes by timing sales so gains are taxed at the lowest available rate. For married couples filing jointly in 2026, taxable income below $98,900 may qualify for a 0% long-term capital gains rate. That creates a window to realize gains at favorable rates and gradually reduce concentrated stock positions without triggering a larger tax bill.

Tax-loss harvesting is the flip side of the same strategy. Selling investments that  lost value lets you use those losses to offset gains you’ve realized elsewhere. Any losses beyond your gains can reduce your ordinary income by up to $3,000 a year, and anything left over carries forward to future years. To keep the loss, don’t buy back the same or a substantially identical investment within 30 days before or after the sale, which the IRS treats as a “wash sale.” Sales must be completed by December 31 to count for 2026.

6. What is asset location, and why does it matter?

Asset location is the practice of choosing which account types (taxable, tax-deferred, or Roth) hold which investments to reduce taxes. Placing growth-oriented investments in Roth accounts shields future gains from taxation entirely, while income-producing assets like bonds are often better suited to pre-tax accounts, where that income is taxed later rather than now. A thoughtful asset location strategy can reduce tax drag on your portfolio over time.

7. What employee benefits should you review during open enrollment?

During open enrollment, review your 401(k) options, Roth features, and any deferred compensation plan your employer offers. Many employers now offer both traditional and Roth 401(k) options, and some allow automatic conversion of after-tax contributions to Roth accounts. High earners should also ask about deferred compensation plans, which can help manage current tax exposure while creating an income stream in the years immediately following retirement. Note that elections for next year’s pay usually have to be made by December 31.

8. How much can you contribute to an HSA in 2026?

In 2026, you can contribute up to $4,400 to a Health Savings Account (HSA) with individual coverage or $8,750 with family coverage. If you have a high-deductible health plan, an HSA offers a rare triple tax advantage: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. Those 55 or older and not yet enrolled in Medicare can add an additional $1,000 catch-up contribution.

9. How do the new OBBBA charitable giving rules affect your deduction?

Starting in 2026, the OBBBA introduced a new deduction for non-itemizers of up to $1,000 for single filers and $2,000 for married couples filing jointly on cash gifts made directly to qualified charities. This is a meaningful benefit for the majority of taxpayers who take the standard deduction. Note that gifts to donor-advised funds (DAFs) and supporting organizations don’t qualify.

For those who do itemize, gifting long-term appreciated stock directly to a charity is often more tax-efficient than giving cash. You can deduct the fair market value of the shares while avoiding the capital gains tax a sale would trigger, though this benefit is capped at 30% of your adjusted gross income (AGI) and falls under itemized deductions, not the new above-the-line provision.

Itemizers also face two new constraints under OBBBA: total charitable gifts must exceed 0.5% of AGI before any portion counts toward a deduction, and the tax value of itemized deductions overall is now capped at a 35% rate, even for those in the 37% marginal bracket.

If you're 70½ or older and charitably inclined, a qualified charitable distribution (QCD) of up to $111,000 in 2026 lets you give directly from your IRA to a qualified charity. The amount is excluded from your taxable income, and once you reach age 73, it also counts toward your required minimum distribution (RMD).

The OBBBA makes QCDs even more valuable. Because the gift never enters your income, it isn’t subject to the new 0.5% floor or the 35% cap on itemized deductions, and you benefit whether or not you itemize. Keeping that income off your return can also help protect your SALT deduction and the new senior deduction, and keep your Medicare premiums down.

Timing matters. The IRS counts the first dollars you withdraw each year toward your RMD, so make your QCD before taking the rest of your distribution. QCDs must come from an IRA, not a 401(k), and must be completed by December 31.

10. What estate planning strategies should you consider before year-end?

Beginning in 2026, the federal estate and gift tax exemption rises to $15 million per individual, or $30 million for a married couple, and is indexed for inflation going forward. While the OBBBA removed the scheduled 2026 sunset, future legislation could still lower it, and waiting can be costly for families approaching the threshold.

If you're nearing the lifetime limit, consider transferring assets with the greatest appreciation potential out of your estate now. Gifting earlier removes future growth from your taxable estate and reduces exposure to potential future exemption reductions. Annual exclusion gifts of $19,000 per recipient remain a simple, effective tool, especially when paired with tuition and medical payments made directly to providers.

For those with concentrated positions, closely held businesses, or rapidly appreciating assets, several advanced strategies can add flexibility:

• Qualified personal residence trusts (QPRTs) for transferring your home to beneficiaries

• Spousal lifetime access trusts (SLATs) for transferring assets while maintaining indirect access through your spouse

• Charitable remainder trusts for balancing charitable goals with ongoing income needs

• Grantor retained annuity trusts (GRATs) for transferring asset appreciation to beneficiaries

Make Your Next Move with Confidence

Tax planning is rarely simple, but the right strategies, applied at the right time, can have a lasting impact on your financial security. The opportunities outlined above won't apply equally to every situation, which is exactly why personalized guidance matters.

If one or more of these strategies resonates with your circumstances, connect with your Quotient advisor to evaluate your options before the year ends. And if you're not yet working with an advisor, reach out to us. We're here to help you plan with confidence and protect what you've built.