# Year-End Tax Moves Checklist 2026: What to Do Before December 31 ![Navy-and-gold year-end tax planning flat lay with a December calendar, payroll documents, calculator, and charitable receipts](https://cdn.marblism.com/I_gaWhv8lRz.webp) **Brick Taxes | 732-540-1040** > **Executive Summary for the Taxpayer.** The 2026 401(k) contribution limit is $24,500, and several useful year-end tax moves (including payroll deferrals, required minimum distributions, and charitable gifts) need attention before December 31. Use this checklist to plan ahead for the 2027 filing season, and confirm deadlines and eligibility with your plan administrator or tax professional. It's late October, which means the final payrolls and December 31 deadline are getting close. Whether you're a homeowner, W-2 employee, freelancer, landlord, or small business owner on the eastern seaboard, a few timely decisions can make 2027 tax filing smoother. ## 1. Check your 401(k) limit for 2026—and act through payroll The 2026 401(k) elective deferral limit is **$24,500**. If you're age 50 or older, the standard catch-up limit is **$8,000**; if you're age 60, 61, 62, or 63 in 2026, the higher catch-up limit is **$11,250** instead. ([IRS: 2026 retirement plan limits](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500)) - Check your year-to-date contributions and remaining eligible pay periods. - Ask payroll when changes must be submitted to affect your final 2026 paycheck. - Confirm that your plan allows the catch-up contributions you intend to make. A 401(k) salary deferral generally must be taken from pay during the year; you can't make up a missed 2026 employee deferral as a lump-sum contribution after December 31. If you're paid weekly, check the employer's payroll cutoff, not just the date your paycheck arrives. ([IRS: 401(k) contribution limits](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits)) **Higher earners:** Beginning in 2026, certain participants whose prior-year wages from the employer exceed **$150,000** generally must make catch-up contributions on a Roth basis when the plan offers a Roth feature. Confirm how the rule applies with your plan administrator. ([IRS: Catch-up contributions](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-catch-up-contributions)) ## 2. Plan your IRA contribution and cash flow The combined traditional and Roth IRA contribution limit for 2026 is **$7,500**, plus a **$1,100** catch-up contribution for eligible taxpayers age 50 or older. Your eligibility to deduct a traditional IRA contribution or contribute to a Roth IRA may depend on compensation, income, and workplace-plan coverage. ([IRS: 2026 retirement plan limits](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500)) You generally have until the due date of your 2026 federal income tax return in April 2027 to contribute to a 2026 IRA. Still, decide now whether that contribution fits your year-end cash flow, and label the contribution for the correct tax year. ([IRS: Publication 590-A](https://www.irs.gov/publications/p590a)) ## 3. Review your FSA deadline before unused funds expire For plan years beginning in 2026, the health FSA salary-reduction limit is **$3,400**. If your employer's plan permits a carryover, the maximum amount carried into the next plan year is **$680**. ([Rev. Proc. 2025-32](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf)) - Check whether your plan uses a carryover or a grace period, which may extend eligible spending into 2027. - Confirm the plan year and its claim-submission rules; a calendar-year deadline may not apply to every plan. - Review eligible expenses, such as qualifying glasses, dental care, and prescriptions. Plans generally may offer a carryover or a grace period, but not both. If your plan offers neither, unused funds may be forfeited under the plan's rules, so check the details now rather than guessing in December. ([IRS: Publication 969](https://www.irs.gov/publications/p969)) ![FSA year-end planning still life with prescription glasses, dental receipt, and a December calendar on a navy surface](https://cdn.marblism.com/yZSmlB4i9gR.webp) ## 4. Take any required RMDs by the applicable deadline If you must take a 2026 required minimum distribution (RMD), check your account and distribution deadline now. For many traditional IRA and workplace retirement plan account holders, the annual deadline is December 31; an exception may apply if 2026 is your first RMD year, allowing the first distribution to be postponed until April 1, 2027. ([IRS: RMD FAQs](https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs)) That first-year delay can mean taking two RMDs in 2027: one for 2026 and one for 2027. A missed or insufficient RMD may be subject to a **25% excise tax** on the shortfall, reduced to **10%** if corrected within the two-year correction window; you may need to file Form 5329. The IRS may waive the tax in some reasonable-error cases when you take steps to correct the shortfall. ([IRS: RMD FAQs](https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs); [Form 5329](https://www.irs.gov/forms-pubs/about-form-5329)) ## 5. Make charitable gifts with the 2026 rules in mind Starting in tax year 2026, taxpayers who take the standard deduction may be able to deduct cash gifts to certain qualified charities up to **$1,000**, or **$2,000** for married couples filing jointly. The new deduction doesn't cover noncash gifts and doesn't allow a carryover. ([IRS: Charitable contributions](https://www.irs.gov/taxtopics/tc506)) For taxpayers who itemize, the new **0.5% of adjusted gross income (AGI) floor** means only qualifying contributions above that threshold are deductible, subject to other applicable limits. The rules can therefore work differently for non-itemizers and itemizers; keep bank records and written acknowledgments for your gifts. ([IRS: 2026 tax inflation adjustments](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill); [IRS: Charitable contributions](https://www.irs.gov/taxtopics/tc506)) ![Organized charitable receipts, envelope, calculator, and December calendar on a navy-and-gold tax planning desk](https://cdn.marblism.com/as8rmkmJh6-.webp) ## 6. Check whether new OBBBA deductions apply to you The One Big Beautiful Bill Act created deductions scheduled to apply for tax years **2025 through 2028**, so 2026 is a full year under these provisions. Eligibility and reporting rules differ by deduction. ([IRS: Working Families Tax Cuts](https://www.irs.gov/newsroom/working-families-tax-cuts-individuals-and-workers)) - **Qualified tips:** A deduction of up to **$25,000**, with a phaseout above modified AGI of **$150,000** for single filers or **$300,000** for joint filers; occupation and other eligibility rules apply. - **Qualified overtime:** A deduction of up to **$12,500**, or **$25,000** for joint filers, with the same phaseout thresholds. It generally applies to the qualifying overtime premium, not every dollar of overtime pay. - **Qualifying car-loan interest:** A deduction of up to **$10,000**, with a phaseout above modified AGI of **$100,000** for single filers or **$200,000** for joint filers. The loan must meet requirements, including an origination date after December 31, 2024, and the vehicle must qualify for personal use and U.S. final assembly. These are deductions against taxable income, not exemptions from Social Security or Medicare taxes on wages. Check the IRS rules and keep the records needed to substantiate any deduction you claim. ([IRS: Tips, overtime, and car-loan interest](https://www.irs.gov/newsroom/working-families-tax-cuts-individuals-and-workers)) ## 7. Check withholding before the last payrolls Use the IRS [Tax Withholding Estimator](https://www.irs.gov/individuals/tax-withholding-estimator) to review your federal withholding before the year's final paychecks. A new job, marriage, side income, or a deduction you expect to claim could change the result. ([IRS: Year-round tax planning](https://www.irs.gov/newsroom/irs-reminder-year-round-tax-planning-can-make-filing-easier)) The goal isn't automatically the biggest refund or the biggest paycheck. It's to make an informed choice and reduce the risk of a tax-time surprise; if you need to adjust withholding, submit an updated Form W-4 to your employer. ([IRS: Form W-4](https://www.irs.gov/forms-pubs/about-form-w-4)) ## 8. Business owners: review payroll, retirement plans, and estimates S corporation owners should review reasonable compensation and make sure payroll reflects compensation for services before distributions. For a New Jersey-focused review, see [S Corp Reasonable Salary: How NJ Business Owners Avoid an IRS Audit](https://www.bricktaxes.com/blog/s-corp-reasonable-salary-how-nj-business-owners-avoid-an-irs-audit-debbd170). ([IRS: S Corporation Compensation](https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-compensation-and-medical-insurance-issues)) - Check whether your plan permits a year-end employer match or settlement. - For a solo 401(k), review the plan's deadline for making an elective-deferral election; do not assume it can be set up retroactively. - SEP-IRA contributions may generally be made by the business return's filing deadline, including extensions, subject to the plan and eligibility rules. ([IRS: Publication 560](https://www.irs.gov/publications/p560)) - Calendar-year individual taxpayers generally have a fourth-quarter 2026 estimated-tax payment due **January 15, 2027**. ([IRS: Publication 509](https://www.irs.gov/publications/p509)) **Brick Taxes can help** business owners review payroll, estimate payments, and year-end tax planning. Call **732-540-1040** or [book a consultation](https://calendly.com/bricktaxes/resolve). ### New Jersey add-ons before year-end - If you may qualify for ANCHOR, check the **November 2, 2026** application deadline for the 2025 benefit year in our [NJ ANCHOR and PAS-1 guide](https://www.bricktaxes.com/blog/nj-anchor-pas-1-paad-explained-who-qualifies-what-you-get-and-how-to-apply-without-getting-stuck-on-idme-a6a6e7c9). - Homeowners, retirees, and business owners can review our overview of [2026 New Jersey tax law changes](https://www.bricktaxes.com/blog/2026-new-jersey-tax-law-changes-what-nj-homeowners-retirees-businesses-need-to-know-88c75be1). **Taxpayer rights matter, too.** If a tax question becomes an IRS dispute, taxpayers have the right to representation and to challenge the IRS's position. The Taxpayer Advocate Service may be able to help with unresolved problems or serious financial hardship; urgent health or safety concerns are fact-specific and should be raised promptly with a representative or TAS. ([IRS: Taxpayer Bill of Rights](https://www.irs.gov/taxpayer-bill-of-rights); [Taxpayer Advocate Service](https://www.taxpayeradvocate.irs.gov/)) ## Frequently asked questions **Can I still contribute to my 401(k) if I get paid weekly and the year ends?** Ask payroll when your last 2026 deferral can be processed. Employee salary deferrals generally need to come from 2026 pay; a post-December 31 lump sum does not replace a missed payroll deferral. ([IRS: 401(k) contribution limits](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits)) **What if I miss my RMD?** Correct the shortfall as soon as possible, then review Form 5329 and whether you qualify to request a waiver. The excise tax may be reduced if you correct within the statutory window. ([IRS: RMD FAQs](https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs)) **Does the new charitable deduction apply if I take the standard deduction?** Beginning in 2026, eligible non-itemizers may deduct qualifying cash contributions up to the applicable limit. Noncash gifts do not qualify for this new deduction. ([IRS: Charitable contributions](https://www.irs.gov/taxtopics/tc506)) **Are the tips and overtime deductions available for 2026?** They are scheduled to apply for tax years 2025 through 2028, subject to the rules, income limits, and reporting requirements for each deduction. ([IRS: Working Families Tax Cuts](https://www.irs.gov/newsroom/working-families-tax-cuts-individuals-and-workers)) **What happens if my FSA runs out of time?** Unused funds may be forfeited if your plan offers neither a carryover nor a grace period. Check your plan documents for the applicable deadline and eligible expenses. ([Rev. Proc. 2025-32](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf)) **When is the fourth-quarter estimated payment due?** For calendar-year individual taxpayers, the fourth-quarter 2026 estimated-tax payment is generally due January 15, 2027. ([IRS: Publication 509](https://www.irs.gov/publications/p509)) **Make your December checklist work for you** The highest-priority moves often involve things that can't be fixed after the calendar turns: payroll deferrals, an RMD, FSA spending, and records for charitable gifts. Brick Taxes can help you organize your year-end plan and prepare for filing season. [Read our Google reviews](https://www.bricktaxes.com/reviews): **More than 105 Five-Star Google Reviews & Counting**. **Brick Taxes | 732-540-1040** [Book a consultation](https://calendly.com/bricktaxes/resolve) *This article is for general educational purposes and is not financial consulting or financial or investment advice. Consult your own financial advisor regarding financial or investment decisions. Brick Taxes has no referral arrangement related to this article.*