As the year draws to a close, now is the time to make sure your financial plan and tax strategy are aligned before December 31. Below is our updated 2026 Year-End Financial Planning Checklist, reflecting current contribution limits and key planning thresholds.

Contact your wealth consultant to schedule a year-end review, or take our client compatibility survey to learn how our team can help.

1. Review Retirement Accounts

Required Minimum Distributions (RMDs):

If you are age 73 or older, your RMD must be taken by December 31. If 2026 is your first RMD year, you may delay until April 1, 2027, but note, you would then be required to take two taxable distributions in 2027. Inherited IRA owners should confirm their distribution schedule with their wealth consultant and tax advisor. If you inherited an IRA after January 1, 2020, you may be subject to the 10-year rule.

IRA and Roth IRA Contributions:

• Contribution deadline: April 15, 2027

• Limit: $7,500 ($8,600 if age 50+)

• Traditional IRA deduction phaseouts
  • If covered by a workplace plan): begin at $81,000 (single and head of household) and $129,000 (married filing jointly)
  • If one spouse is covered by a workplace plan: begin at $242,000 (married filing jointly)
• Roth IRA income phaseouts:
  • Begin at $153,000 (single and head of household) and $242,000 (married filing jointly)

Workplace Plans (401(k), 403(b), 457(b)):

• Contribution deadline: 12/31/2026

• 2026 deferral limit: $24,500

• Catch-up: $8,000 (age 50+); $11,250 special catch-up for ages 60 to 63

• New for 2026: if your prior-year wages from the employer exceeded $150,000 and you are over age 50, catch-up contributions must generally be made on a Roth (after-tax) basis. Confirm with your plan administrator that your plan allows Roth catch-up contributions and that payroll is set up to process them.

Business Owner Plans:

• SEP IRA limit: $72,000; deadline April 15, 2027 (or October 15, 2027, with an extension)

• SIMPLE IRA limit: $17,000; catch-up $4,000 (age 50+); $5,250 for ages 60 to 63

Roth Conversions:

A lower-income year can be a natural window to consider a Roth conversion, which may reduce future RMDs and provide tax-free growth. Conversions increase income in the year they occur, which can affect Medicare premiums two years later, state income tax, and other income-based thresholds. Please review the timing with your wealth consultant and tax advisor.

2. Maximize Charitable Giving

New 2026 rules are now in effect.

The charitable provisions of the One Big Beautiful Bill Act (OBBBA) apply to this year’s gifts. Learn more here.

• Itemizers can deduct only charitable gifts that exceed 0.5% of Adjusted Gross Income (AGI).
• For taxpayers in the 37% bracket, the tax benefit of itemized deductions is capped at 35%.
• Taxpayers who do not itemize may deduct up to $1,000 (single) or $2,000 (married filing jointly) of cash gifts.

Qualified Charitable Distributions (QCDs):

• Available to individuals age 70½ and older
• Up to $111,000 per person in 2026 can go directly from an IRA to charity
• Counts toward your RMD and is excluded from income, so the new AGI floor and cap do not apply.
• Cannot be directed to a donor-advised fund
• Initiate requests early so funds arrive before December 31

Donor-Advised Fund (DAF):

A DAF allows you to contribute cash or appreciated assets for an immediate deduction and recommend grants to charities over time. With the 0.5% floor in effect, “bunching” several years of giving into one year may help your total giving clear both the floor and the standard deduction.

Gifting Appreciated Securities:

Donating long-term appreciated securities instead of cash can avoid realizing the embedded capital gain, which may reduce federal capital gains tax, the 3.8% net investment income tax, and state taxes on the gain.

3. Revisit Gifting and Estate Planning

Annual Gift Exclusion:

• $19,000 ($38,000 per couple) per recipient, unchanged from 2025.
• Options include 529 plan funding, gifts of appreciated securities, or cash.
• Direct tuition and medical payments, which do not count toward the annual exclusion. They must be made directly to the institution.
• A 529 plan can be front-loaded with five years of gifts ($95,000 per donor, or $190,000 per couple) without gift tax.

Lifetime Gift and Estate Exemption:

• $15 million per person ($30 million per couple) for 2026
• OBBBA made this exemption permanent and indexed it to inflation, so the previously scheduled sunset no longer applies. Gifts above the annual exclusion require a gift tax return (Form 709) by April 15, 2027. Learn more here.

Gifts for Children and Grandchildren:

Trump Accounts, a new tax-advantaged account for children, are now available. See our update on how to open and manage a Trump Account for current guidance.

Review Your Documents:

Confirm that wills, trusts, powers of attorney, and beneficiary designations on IRAs, 401(k)s, and life insurance reflect your current wishes, especially after a move, birth, or other family change.

4. Optimize Your Tax Picture

Tax-Loss and Gain Harvesting:

Review taxable accounts for losses that can offset gains. The wash-sale rule disallows a loss if you buy a substantially identical investment within 30 days before or after the sale, including in an IRA or a spouse’s account. Realizing gains in a lower-income year can also be worthwhile, so consider both sides.

Private Investments:

If you hold private funds or partnerships, review expected K-1 timing, capital calls, and distributions with your advisor so that your estimated payments and extension decisions reflect them.

SALT Deduction:

The federal state and local tax (SALT) deduction cap is $40,400 for 2026, and it phases down for higher-income taxpayers. Business owners in states that offer a pass-through entity tax election, including Oregon and California, may be able to deduct state taxes at the entity level. Please review with your tax advisor.

Business Owners:

OBBBA made the 20% qualified business income deduction permanent and restored full expensing for qualifying equipment. Owners of qualified small business stock (QSBS) issued after July 4, 2025, may be eligible for a tiered exclusion with a higher cap. State treatment varies significantly.

5. Maximize Health and Benefit Accounts

Health Savings Account (HSA):

• Contribution limit: $4,400 individual / $8,750 family (+$1,000 catch-up if age 55+)
• Unused funds roll over and can be invested for long-term growth.

Flexible Spending Accounts (FSA):

• Health FSA: $3,400 limit, with up to $680 carryover if your plan allows
• Dependent Care FSA: up to $7,500 ($3,750 if married filing separately), raised from $5,000 under OBBBA
• Use any remaining 2026 balances before year-end unless your plan allows a carryover.

Final Thoughts

Reviewing your financial plan, tax strategy, and gifting opportunities before December 31 can position you for a stronger start to 2027. Federal and state tax laws continue to change, and your state of residence can significantly affect which strategies make sense for your financial plan. We would welcome the chance to discuss which of these opportunities may suit your situation.

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Securities highlighted or discussed in this communication are mentioned for illustrative purposes only and are not a recommendation for these securities. Evergreen actively manages client portfolios and securities discussed in this communication may or may not be held in such portfolios at any given time. This material has been prepared or is distributed solely for informational purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Any opinions, recommendations, and assumptions included in this presentation are based upon current market conditions, reflect our judgment as of the date of this presentation, and are subject to change. Past performance is no guarantee of future results. All investments involve risk including the loss of principal. All material presented is compiled from sources believed to be reliable, but accuracy cannot be guaranteed and Evergreen makes no representation as to its accuracy or completeness.

The information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation. The items included in this publication are our opinion as of the date of this piece, not all encompassing, and are subject to change without notice. Any tax or legal advice contained in this communication is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.

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