Year-End Planning: 2026 Deadlines and Key Tax Strategies

 As we head into the final quarter of 2026, our team is actively reviewing year-end planning opportunities to help you make the most of the strategies available. 

From tax projections and retirement contributions to charitable giving, Roth conversions, and tax-loss harvesting, we're evaluating opportunities to manage tax exposure and support your broader financial goals. 

We're working behind the scenes to evaluate potential strategies and, where appropriate, discuss implementation based on your circumstances. In the meantime, we've outlined a few important deadlines and planning considerations to keep on your radar as we approach year-end. 

What We're Focused On 

As part of our ongoing planning process, our team is actively evaluating: 

Tax Planning: Reviewing tax projections, potential Roth conversions, and opportunities to manage taxable income. 

Investment Tax Efficiency: Monitoring portfolios for tax-loss harvesting and capital gains management opportunities. 

Retirement Planning: Reviewing contribution strategies, catch-up eligibility, and required minimum distributions. 

Charitable Giving: Evaluating tax-efficient giving strategies, including appreciated securities, donor-advised funds, and qualified charitable distributions. 

Not every strategy applies to every client, but our goal is to identify opportunities that align with your individual circumstances and financial plan. 

New for 2026: Charitable Giving Considerations 

Several changes to the tax code take effect in 2026 that may impact charitable giving strategies: 

- New deduction for non-itemizers: Individuals who don't itemize may deduct up to 1,000 in qualifying cash charitable contributions (2,000 for married couples filing jointly). Contributions to donor-advised funds do not qualify for this deduction. 

- New 0.5% AGI floor: For those who itemize, charitable contributions are generally deductible only to the extent they exceed 0.5% of adjusted gross income (AGI). Certain disallowed contributions may be eligible for carryforward. 

- New limitation for top-bracket taxpayers: For individuals in the 37% federal income tax bracket, the tax benefit of itemized deductions is generally capped at 35%. 

These changes make thoughtful charitable giving strategies, including donation timing, gifting appreciated securities, and utilizing donor-advised funds, particularly important. Our team is evaluating these opportunities as part of our ongoing tax planning process. 

Qualified Charitable Distributions (QCDs) 

For individuals age 70½ and older, Qualified Charitable Distributions (QCDs) offer a tax-efficient way to give directly from an IRA to eligible charities, potentially satisfying required minimum distributions (RMDs) without increasing taxable income. 

In 2026, individuals can contribute up to $111,000 through QCDs. These distributions do not require itemizing, are not subject to the new 0.5% AGI charitable deduction floor, and cannot be made to donor-advised funds. 

Key Deadlines 

By December 31, 2026 

- 401(k) / 403(b) Contributions: Employee contributions 

- SIMPLE IRA: Employee salary deferral contributions 

- Backdoor Roth IRA Conversions: Contributions + conversions 

- Roth IRA Conversions: Complete conversions by December 31 to be included in the 2026 tax year. 

- Required Minimum Distributions (RMDs) 

- Donor-Advised Fund (DAF) Contributions 

a) important: Please ensure all DAF paperwork for appreciated security transfers is signed by December 1, 2026, to allow sufficient processing time before year-end. 

By April 15, 2027 (for the 2026 Tax Year) 

- Traditional and Roth IRA Contributions 

- Health Savings Account (HSA) Contributions 

- SEP IRA Contributions: Generally due by the business's tax filing deadline, including applicable extensions. 

Solo 401(k) Contribution Logistics 

For clients with Schwab Individual 401(k) plans, please remember that physical checks are required for employee contributions. You can: 

- Mail your check to our office by December 18, 2026. 

- Drop off your check at our office by December 23, 2026. 

- Deposit directly at your local Schwab branch: Please coordinate with us. 

401(k) Catch-Up Contributions: Changes for 2026 and 2027 

Beginning in 2026, employees age 50 and older who earned more than $150,000 from their current employer in 2025 must make their 401(k) catch-up contributions on a Roth (after-tax) basis, rather than pre-tax. 

2026 401(k) Contribution Limits: 

- Standard contribution: $24,500 

- Age 50+: Additional $8,000, for a total of $32,500 

- Ages 60–63: Additional $11,250, for a total of $35,750 

Looking Ahead to 2027: The IRS has not yet announced the 2027 contribution limits or Roth catch-up income threshold. We'll share updates once they're available. 

Required Minimum Distributions (RMDs) 

Our team is actively monitoring required minimum distributions (RMDs) for clients subject to these requirements. If you have an outstanding 2026 RMD that we oversee, we'll be in touch to coordinate the distribution and help coordinate efforts to complete it before year-end. 

Looking Ahead 

We'll continue to proactively review planning opportunities and reach out individually as we identify strategies that may benefit your financial plan. 

In the meantime, if you're anticipating any changes to your income, charitable giving, cash flow, or other financial circumstances, please let us know so we can incorporate them into our planning. 

As always, thank you for your continued trust and partnership. We're grateful for the opportunity to help guide your financial life and look forward to another successful year together. 

Warm regards, 
Your Trusted Team at Relevé Financial Group