Time is running out to make these year-end payments
The end of the year is almost upon us – so before you fully commit to the gift-wrapping, plane-hopping, eggnog-guzzling frenzy of the holidays, take a moment to get your finances in order for 2026.
Most key currency deadlines are on Dec. 31, which is the last day of the tax year, so it’s wise to set aside time now to tackle your to-do list.
Here are five financial services experts who suggest you get out before the ball drops:
Withdrawing your retirement contributions
Cindi Turoski, a partner at accounting firm Bonadio Group, says that if you can afford it, you should contribute as much as possible to your employer’s retirement plan. By 2025, most workers can contribute up to $23,500 to their 401(k), 403(b) or government plan.
People ages 50 to 59, however, can make “catch-up” 401(k) contributions of up to $7,500 more than that, and people ages 60 to 63 can contribute $11,250 more.
Contributing to a traditional 401(k) reduces annual taxable income, so making it a priority is a win-win. The deadline to contribute to your 401(k) for 2025 is December 31st. This differs from the deadline for individual retirement accounts, or IRAs — that’s not until April 15.
Give to the poor
When you file your taxes, you may want to “accelerate your 2026 charitable contributions to 2025,” Turoski says. The reason for this is a provision in the One Big, Beautiful Bill that President Donald Trump signed in July.
From 2026, only charitable contributions exceeding 0.5% of income will be deductible. For example, if you earn $200,000 in adjusted gross income, then 0.5% of your income is $1,000. So if you contribute $20,000, you will only be able to withdraw $19,000.
In addition, the tax benefit for the highest earners will reach 35%, although the highest tax bracket is 37%.
You can avoid these rules by preloading your contributions and submitting them before the tax year ends in Jan. 1.
If you don’t file your taxes, however, you may have to drag your feet. Trump’s tax law created a deduction for above-the-line charitable donations of up to $1,000 for donors taking the standard deduction (up to $2,000 for joint filers). But this doesn’t happen until the start of the 2026 tax year, so non-assets won’t get a deduction for any contributions they made or made in 2025.
Take any necessary distributions
Now is the time for retirees to take Required Minimum Distributions, or RMDs, said Ronnie Gillikin, president and CEO of financial health firm Capital Choice of the Carolinas. An RMD is the minimum amount you must withdraw from your retirement accounts each year after you reach a certain age (currently, 73).
Once you turn 73, you’re ready to take your first RMD on April 1 of the following year. After that, you must take RMDs every year by Dec. 31 — “an important deadline to be aware of,” Gillikin said.
If you’re decades away from retirement, inherited IRAs are subject to RMD rules, too, so it’s worth staying on top of them.
Use your FSA dollars
Do you have a variable spending account, or FSA? Then you go in, you lose, we go shopping.
FSAs fall into the use-it-or-lose-it category. Any money left in an FSA disappears at the end of the year, so it’s in your best interest to use that balance before Dec. 31. (unless your employer gives you grace period or allows you to carry a certain amount).
Although FSAs are reserved for medical expenses, eligibility rules are loose. You may be able to get a refund on things like acne, foot massagers, sunscreen, electric toothbrushes, bandages, antacids and prescription sunglasses – making this a great opportunity to stock up or buy holiday gifts.
Note: The rules are different for health savings accounts, or HSAs. The HSA donation deadline is usually April 15.
Review your investments
Chuck Czajka, founder of Macro Money Concepts, suggests sitting down and reviewing your portfolio to see if you should make any tax-saving moves before the end of the year. Some investors, for example, may want to explore tax loss harvesting, which is when you sell an investment at a loss to reduce capital gains taxes.
Time here is of the essence. Before making a decision on when to sell, you should try to figure out whether it makes sense to wait until 2026, Gillikin said. This is where a financial professional can help guide you.
“You might want to check in with your CPA or investment advisor to see if you missed anything,” he adds.
While you’re at it, you should also look at your investments to make sure they’re still in line with your goals and risk tolerance. If not, you should adjust to be in good shape for 2026.
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