Finish The Year Strong: Tax, Estate, and Investment Planning

As December 31 approaches, a little proactive planning can make a meaningful difference in your financial future. Some tax and financial planning strategies must be completed before year-end, while others become much harder or impossible to address after the deadline passes.

To help you finish 2026 with confidence, we gathered practical guidance from different professionals in financial planning, tax planning, and estate planning.

Look beyond this year’s tax bill

One of the most valuable year-end steps is completing a tax projection before December 31.

Once you have a reasonable estimate of your annual income, you and your financial professionals can evaluate strategies such as:

• Roth conversions

• Tax-loss harvesting

• Tax-gain harvesting

• Charitable bunching

• Retirement plan contributions

• Qualified Charitable Distribution (QCD)   

The goal is not simply to reduce this year’s taxes. It is to make decisions that support your complete retirement and long-term financial plan.

“Too many people focus on saving taxes this year instead of saving taxes over their lifetime,” says Justin Pitcock, CFP®. “Sometimes paying a little more tax today through strategies like Roth contributions or Roth conversions can create more flexibility and potentially lower taxes in retirement.”

A client story: Connecting generosity with tax planning

Justin shared the story of a retired client who is incredibly generous with both her time and her money. She had committed to an above-and-beyond giving campaign through her church, but because her taxable income was relatively low, the amount of her available charitable deduction was limited based on her adjusted gross income.

Justin and his team identified an opportunity to pair her charitable giving with carefully planned Roth conversions. By intentionally increasing her adjusted gross income through Roth conversions, she may be able to maximize her charitable deduction while also reducing the balances in her tax-deferred retirement accounts.

This coordinated strategy could help her:

• Maximize her available charitable deduction

• Reduce future required minimum distributions

• Create greater tax flexibility in retirement

• Leave a larger tax-free legacy to her heirs

Her story is a helpful reminder that financial decisions should not be made in isolation. When charitable giving, tax planning, retirement income, and estate planning work together, one strategy may support several long-term goals.
 

Review tax-saving opportunities before December 31

Jamie Quinn, CPA, encourages taxpayers to review two commonly overlooked opportunities before year-end.

1. Qualified charitable distributions

If you are age 70½ or older and give to a church or another qualified charitable organization, a qualified charitable distribution, or QCD, may offer tax benefits.

This strategy can be especially valuable for people who no longer itemize deductions. Rather than writing a personal check, an eligible individual may be able to make a charitable gift directly from an IRA and exclude the distribution from taxable income, subject to applicable rules and limits.

2. Capital-gain harvesting

Investors with capital-loss carryforwards should also review whether realizing capital gains could be beneficial. Harvesting gains may allow those gains to be offset by existing losses while helping rebalance or reposition the portfolio.

Because investment and tax decisions can affect one another, coordinate this strategy with both your CPA and financial advisor.

Do not forget the IRA contribution deadline

Some retirement planning deadlines extend beyond December 31. If you are eligible, you may generally make a traditional IRA contribution for the prior tax year until the applicable tax-filing deadline, e.g. April 15th for many personal filers.

Waiting until the last minute can limit your planning options. Review your eligibility, contribution limits, and potential tax benefits with your financial professionals well before filing your return.

If your income, expenses, or overall tax picture changed significantly during the year, ask your CPA to prepare a year-end tax projection. Addressing potential issues early may help minimize surprises when it is time to file.

Check your beneficiary designations

You can have carefully prepared estate planning documents and still encounter problems if the beneficiary designations on your financial accounts do not reflect your current wishes.

Sarah White, estate planning attorney, says failing to update beneficiaries after a major life change is one of the most common estate planning mistakes she sees.

Before the year ends, review the beneficiaries listed on your:

• Retirement accounts

• Life insurance policies

• Annuities

• Bank accounts with payable-on-death designations

• Investment accounts with transfer-on-death (TOD) designations

Beneficiary designations generally control how these assets transfer. If they conflict with your estate planning documents, your wishes may not be carried out as intended.

Revisit your estate plan after a major life change

Your estate plan should evolve as your life does. Consider meeting with your estate planning attorney if you have experienced:

• A marriage or divorce

• A death in the family

• The birth or adoption of a child

• A change in important family relationships

• A move to another state

• A significant change in your financial situation

Even if you did not experience a major change, an annual review can help confirm that your documents, decision-makers, and beneficiary designations remain aligned with your wishes.

Your year-end action plan

Before December 31, consider taking these essential steps:

• Request a year-end tax projection: Review significant changes in income, expenses, and deductions with your CPA.

• Evaluate Roth strategies: Determine whether Roth contributions or conversions support your long-term tax plan.

• Review charitable giving: Consider whether charitable bunching or a qualified charitable distribution may be appropriate.

• Examine your portfolio: Look for tax-loss or tax-gain harvesting opportunities.

• Check retirement contributions: Confirm applicable contribution limits and deadlines.

• Verify beneficiaries: Make sure every designation reflects your current wishes.

• Update your estate plan: Contact your attorney if your family, residence, finances or intentions have changed.

• Coordinate your professionals: Encourage your financial advisor, CPA and estate planning attorney to work together.

Download the 2026 end-of-year planning guide

Year-end planning does not have to feel overwhelming. Our free 2026 End-of-Year Tax, Estate, and Investment Planning Guide brings the most important action items together in one convenient checklist.

Use it to organize your conversations with your CFP® professional, CPA, and estate planning attorney, and make the most of the planning opportunities available before December 31.

Download the free 2026 end-of-year planning guide and finish the year with greater clarity and confidence.

Disclosure:

This information is intended for educational purposes only and should not be considered individualized tax, legal, or investment advice. Consult your financial, tax, and legal professionals regarding your specific circumstances.