By Jen Staben, CRPC®, Financial Advisor, Prime Capital Financial
Key takeaways
- Required minimum distributions: If you’re 73 or older (75 if born in 1960 or later), take your RMD by Dec. 31 to avoid a 25% penalty on the amount you missed.
- Qualified charitable distributions: If you’re 70½ or older, you can send up to $111,000 from an IRA directly to an eligible charity by Dec. 31, and it counts toward your RMD.
- 401(k) contributions: Employee contributions must go through payroll by Dec. 31. The 2026 limit is $24,500, plus $8,000 if you’re 50 or older, or $11,250 if you’re 60 to 63.
- Solo 401(k): If you’re self-employed, open the plan before Dec. 31. You can contribute as the employee through Dec. 31 and as the employer until your tax filing deadline.
- Roth conversions: A conversion has to be completed by Dec. 31 to count for 2026, so review your income with your tax professional before then.
- HSA contributions: The 2026 limit is $4,400 for self-only coverage and $8,750 for family coverage, and it is one of the most commonly missed.
Many end-of-year financial deadlines come due on Dec. 31, and most can’t be completed after that date. If you’re 73 or older, check your required minimum distribution (RMD), and if you give to charity, consider making a gift as a qualified charitable distribution (QCD) from your IRA. Put your 2026 contributions into your 401(k) (up to $24,500, or $32,500 if you’re 50 or older). Finish any Roth conversion. If you’re self-employed, open a Solo 401(k).
I tell clients every fall that the calendar is the one thing we can’t negotiate with. Most of these moves take a single phone call in November, but almost none of them can be done on Jan. 2.
Take your RMD, and consider a QCD if you give to charity
Dec. 31 is the deadline to take your RMD without a penalty. RMDs start at age 73, or age 75 if you were born in 1960 or later. If you miss one, the IRS may impose a penalty of 25% of the amount you should have withdrawn, or 10% if you correct it within the applicable window. If this is your first RMD, you can wait until April 1 of next year, but then you’ll take two in the same year.
Do you give to charity? This is where a QCD comes in. If you’re 70½ or older, you can send up to $111,000 per year from your IRA directly to an eligible charity. A QCD counts toward your
RMD, and the money isn’t included in your taxable income. This one is huge, because some clients don’t need their RMD and use it as a way to contribute to charity and manage their tax exposure.
The gift has to leave your IRA by Dec. 31, and custodians set their own year-end cutoffs, so don’t wait for the last week of December.
Max out your 401(k) before the year ends
401(k) contribution deadlines end with the year, and a 401(k) is oftentimes one of the biggest tax benefits you can get. Because your contributions come out of your paycheck, the real deadline is your last payroll date in December. For 2026, the IRS limit is $24,500. If you’re 50 or older, you can add an $8,000 catch-up, and if you’re 60 to 63, the catch-up is $11,250.
Employer matching schedules vary, and a missed contribution can mean missed free money. Check your plan’s match rules and your year-to-date contributions now, while there are still paychecks left to adjust.
There is a new rule this year for higher earners. If you’re 50 or older and your Social Security wages from your employer topped $150,000 last year, your catch-up contributions must be made on a Roth basis in 2026.
If you are self-employed, open your Solo 401(k) before Dec. 31
For self-employed clients, and for people in soft retirement who consult on the side, set up your Solo 401(k) before the calendar year ends. Once it’s open, you contribute in two roles. As the employee, you can defer up to $24,500 ($32,500 if you’re 50 or older) through Dec. 31. As the employer, you can keep contributing until your business’s tax filing deadline, including extensions. Combined contributions can reach $72,000 in 2026, depending on your income.
Being both the employee and the employer is a huge tax advantage, and it is available only to people who have the plan in place.
Review Roth conversions before the year closes
A Roth conversion has to be completed by Dec. 31 to count for 2026, and it can’t be done retroactively once the year ends. How much to convert depends on what you’ve earned this year, so look at your income before year-end and talk with both your tax professional and your financial advisor. Clients who wait too long to share their numbers can find that they earn more the following year, and the opportunity to convert at a lower tax rate may be gone
The deadlines people overlook most
The two I see missed most are maxing out a 401(k) and funding a health savings account (HSA). Without an advisor who nudges them, many people never check their year-to-date 401(k) contributions. The same goes for the HSA, where the 2026 limit is $4,400 for self-only coverage and $8,750 for family coverage with a qualifying high-deductible health plan. You technically have until the tax filing deadline to fund an HSA for the year, but waiting makes it easy to forget.
Why year-end planning is a year-round habit
Your life changes throughout the year. A new job, a raise, a move or a new grandchild can all change which deadlines matter to you. A living, breathing financial plan grows with you, so these dates never catch you off guard. Start the conversation in October or early November, while payroll departments and custodians still have time to act.
Make your year-end plan before the year ends
At Prime Capital Financial, our mission is inspiring people to achieve their life’s ambition, and that starts with knowing which dates are coming. As a fiduciary, SEC-registered RIA managing more than $50 billion in assets across 60+ offices nationwide*, we build every plan around true partnership, working with our clients, colleagues, and community. Contact us to review your year-end deadlines while there is still time to act.
* As of 8/6/26
This information does not constitute legal advice. Prime Capital Financial and its associates do not provide legal advice. Individuals should consult with an attorney regarding the applicability of this information for their situations.
Advisory products and services offered by Investment Adviser Representatives through Prime Capital Investment Advisors, LLC (“PCIA”), a federally registered investment adviser. PCIA: 6201 College Blvd., Suite 150, Overland Park, KS 66211. PCIA doing business as Prime Financial | Wealth | Retirement | Wellness | Family Office | Tax Advisory | Endowments & Foundations. Tax planning and preparation services are offered through Prime Capital Financial Tax Advisory.
