Before December 31: 5 Financial Decisions Worth Revisiting

The end of the year brings more than holiday plans and a new calendar. It also creates an important opportunity to take a closer look at your financial picture and determine whether your current strategy still reflects your priorities.

As the end of the year approaches, certain financial decisions become time-sensitive. Retirement plan contributions, required minimum distributions, charitable giving, and investment-related tax considerations may all deserve attention before the calendar turns. At the same time, changes in income, family circumstances, retirement timelines, or financial goals can make this an appropriate moment to revisit your broader financial plan.

For individuals approaching retirement, already retired, or managing significant assets, year-end planning can be particularly valuable. A decision made before the end of the year may affect your current tax situation, retirement income strategy, or financial flexibility in the years ahead.

Rather than waiting until tax season to review the previous year’s activity, consider using the final weeks of the year to evaluate five important financial decisions.

1. Revisit Your Retirement Contributions

Retirement contributions are among the first items worth reviewing before December 31. Whether you are still working, nearing retirement, or contributing to an individual retirement account, understanding your contribution limits and available opportunities can help you make more informed decisions.

For 2026, the IRS increased several retirement contribution limits.

Individuals participating in most 401(k), 403(b), and governmental 457(b) plans can contribute up to $24,500 for the year. Employees age 50 and older may generally contribute an additional $8,000 through catch-up contributions, bringing their potential total to $32,500. Individuals ages 60 through 63 may qualify for a higher catch-up contribution limit of $11,250, subject to applicable plan rules.

For traditional and Roth IRAs, the 2026 contribution limit is $7,500, or $8,600 for individuals age 50 and older. Contributions are also limited by eligible taxable compensation, and income restrictions may affect eligibility for Roth IRA contributions or the deductibility of traditional IRA contributions.

These limits create an opportunity to evaluate whether your current savings rate aligns with your retirement goals.

Questions worth asking before year-end include:

• Are you contributing enough to your workplace retirement plan to take advantage of any available employer matching contributions?
• Have you reviewed your annual contribution totals against the 2026 limits?
• Are you eligible to make catch-up contributions?
• Does your current balance between traditional and Roth retirement accounts reflect your broader retirement income and tax planning considerations?

It is also important to understand that contribution deadlines vary. Workplace retirement plan contributions are generally made through payroll and must be processed within the applicable plan and tax-year deadlines. IRA contributions for the 2026 tax year can generally be made up to the federal income tax filing deadline in 2027, without extensions.

The goal is not necessarily to maximize every available contribution. It is to understand your options and determine how they fit into your overall financial strategy.

2. Review Required Minimum Distributions

For retirees and individuals approaching retirement, required minimum distributions (RMDs) deserve particular attention before the end of the year.

RMDs are annual withdrawals that the IRS generally requires individuals to take from certain tax-deferred retirement accounts once they reach a specified age. Under current rules, most account owners must begin taking RMDs at age 73.

These requirements generally apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, and employer-sponsored retirement plans such as 401(k)s. Original account owners are not required to take lifetime RMDs from Roth IRAs.

For most individuals who are already subject to RMD requirements, the annual deadline is December 31. There is an exception for the first required distribution: eligible individuals can generally delay their first RMD until April 1 of the year following the year they turn 73. However, doing so means they will generally need to take a second distribution by December 31 of that same year.

This distinction matters because taking two distributions in one calendar year could result in a larger amount of taxable income for that year.

What should you review?

Start by confirming whether you are required to take an RMD for 2026. If you have multiple retirement accounts, review the distribution requirements for each one.

For example, traditional IRA owners who have multiple IRAs can generally calculate their RMDs separately and withdraw the combined amount from one or more of their IRAs. However, workplace retirement plan RMDs generally must be satisfied separately for each applicable plan.

It is also worth reviewing whether your distribution has already been processed and whether the amount withdrawn meets the applicable requirement.

Failing to take the full required distribution can result in an excise tax. The standard tax is 25% of the amount that should have been distributed but was not, although it may be reduced to 10% if the shortfall is corrected within the applicable correction period and the other requirements are met.

For retirees, RMD planning should also be considered within the context of a broader retirement income strategy. Withdrawals can affect taxable income, Medicare income-related monthly adjustment amounts (IRMAA), and the amount of money available for other financial priorities.

Taking a required distribution is one decision. Determining how it fits into your overall retirement income plan is another.

3. Reevaluate Your Investment and Tax Strategy

Your investment portfolio may look different today than it did at the beginning of the year. Market movements, portfolio performance, changes in interest rates, and personal financial circumstances can all influence whether your current investment strategy remains appropriate.

Year-end provides an opportunity to review both the composition of your portfolio and the potential tax implications of investment activity.

One consideration is tax-loss harvesting.

Tax-loss harvesting involves selling an investment that has declined in value to realize a capital loss. Subject to applicable tax rules, realized losses may be used to offset capital gains. If capital losses exceed capital gains, individuals may generally deduct up to $3,000 of net capital losses against ordinary income annually, or $1,500 for married individuals filing separately. Unused capital losses may generally be carried forward to future tax years.

However, tax-loss harvesting requires careful consideration.

The IRS wash-sale rule generally disallows a loss deduction when an investor sells a security at a loss and purchases substantially identical securities within 30 days before or after the sale. Certain transactions involving a spouse’s account or an IRA can also create wash-sale concerns.

Selling an investment simply to generate a tax loss may not make sense if doing so conflicts with your investment objectives, portfolio allocation, or long-term strategy.

Another important consideration is whether you anticipate realizing capital gains before the end of the year.

If you have sold investments, expect a significant distribution, or are considering selling appreciated assets, it may be worth evaluating how those transactions could affect your overall tax picture.

Consider reviewing the following:

• Your portfolio’s current asset allocation.
• Investments with significant unrealized gains or losses.
• Whether your investment mix still reflects your risk tolerance and time horizon.
• Any anticipated purchases or sales that could create taxable events.
• Whether your portfolio has become concentrated in a particular investment, company, or asset class.

Tax considerations should be part of investment planning, but they should not be the only consideration. A strategy designed around minimizing taxes in one year may not necessarily support your longer-term financial objectives.

The broader question is whether your investments continue to serve the purpose they were originally intended to support.

4. Reconsider Your Charitable Giving Strategy

For many individuals and families, charitable giving is an important part of their financial lives. Year-end is a natural time to review charitable commitments, evaluate potential giving strategies, and determine whether planned contributions have been completed.

However, charitable giving can involve more than deciding how much to donate.

The timing, type of asset, recipient organization, and applicable tax rules may all influence the financial implications of a contribution.

For 2026, there are several tax considerations worth understanding.

Beginning with the 2026 tax year, eligible taxpayers who take the standard deduction may be able to claim an additional deduction for qualifying cash contributions to eligible charitable organizations. The deduction is limited to $1,000 for individuals and $2,000 for married couples filing jointly, subject to applicable requirements.

For taxpayers who itemize deductions, a new 0.5% of adjusted gross income (AGI) floor applies to charitable contributions beginning in 2026. Generally, only qualifying contributions exceeding that threshold are deductible, subject to other applicable limitations.

These changes make it particularly important to review charitable giving plans with a qualified tax professional.

Another strategy some investors consider is donating appreciated investments rather than selling them and donating the resulting cash.

When properly structured, donating eligible appreciated assets held for more than one year to a qualified charitable organization may allow the donor to avoid recognizing the capital gain that would otherwise result from selling the asset. The donor may also qualify for a charitable deduction, subject to applicable rules, limitations, and substantiation requirements.

This approach may be worth exploring for individuals with highly appreciated investments, particularly when charitable giving is already part of their financial plan.

Donor-advised funds are another option worth discussing. These charitable giving accounts allow individuals to contribute assets to a sponsoring organization, potentially receive a qualifying charitable deduction when the contribution is made, and recommend grants to eligible charities over time. Contributions are generally irrevocable once made to the sponsoring organization.

The appropriate strategy depends on individual circumstances, tax considerations, and charitable intentions.

Before December 31, consider whether your charitable contributions are complete, whether you want to support additional organizations, and whether the assets you use to make those contributions deserve a closer look.

Charitable giving can be meaningful on its own. Thoughtful planning can help ensure that your giving decisions are also considered within the context of your broader financial picture.

5. Revisit Your Overall Financial Plan and Long-Term Goals

The final financial decision worth revisiting may be the most important: whether your overall financial plan still reflects where you are today and where you want to go.

Financial plans are not static documents. They should evolve as your circumstances, priorities, and expectations change.

A career transition, business sale, inheritance, marriage, divorce, change in family responsibilities, or approaching retirement can all create reasons to reassess your financial strategy.

Even without a major life event, the passage of another year provides an opportunity to evaluate whether your current plan remains aligned with your long-term objectives.

For individuals approaching retirement, this review may involve examining projected retirement income, anticipated expenses, healthcare costs, and the timing of Social Security benefits.

For those already retired, it may be appropriate to revisit withdrawal strategies, portfolio allocations, cash reserves, and the relationship between investment assets and ongoing income needs.

Estate planning also deserves attention. Review beneficiary designations on retirement accounts, life insurance policies, and other financial assets. Confirm that these designations reflect your current wishes and are coordinated with your broader estate plan.

It may also be worth reviewing whether your will, trusts, powers of attorney, and healthcare directives reflect your current circumstances. Changes in family relationships, financial assets, or state residency can make an updated review especially important.

A year-end financial review might include:

• Retirement income projections and anticipated expenses.
• Investment allocation and overall risk exposure.
• Emergency savings and available cash reserves.
• Life insurance and other risk-management considerations.
• Beneficiary designations and estate planning documents.
• Tax planning considerations for the upcoming year.
• Changes in financial goals, family circumstances, or retirement timelines.

The purpose of this review is not to make changes simply because another year has passed. It is to identify whether adjustments may be appropriate and whether different parts of your financial strategy continue to work together.

A well-coordinated financial plan considers more than individual accounts or isolated financial decisions. It considers how those decisions interact and how they may influence your long-term financial picture.

Looking Ahead: Make the Most of the Time Before December 31

The final weeks of the year can be a valuable opportunity to step back, evaluate your financial priorities, and address decisions that may have important implications beyond the current calendar year.

From retirement contributions and required minimum distributions to investment considerations, charitable giving, and estate planning, each area deserves attention within the context of your individual circumstances.

Not every strategy will be appropriate for every investor. Some decisions have firm December 31 deadlines, while others can be addressed in the months ahead. Understanding the difference is an important part of effective financial planning.

At Agemy Financial Strategies, we believe thoughtful financial planning is about planning instead of predicting. Rather than attempting to anticipate every market movement or future outcome, a well-considered strategy focuses on preparation, informed decisions, and the financial goals that matter most to you.

As 2026 comes to a close, consider whether your current financial strategy is positioned to support the next chapter of your life.

Have questions about your year-end financial planning?

The team at Agemy Financial Strategies works with individuals and families to help evaluate their financial priorities and develop strategies aligned with their long-term objectives.

Contact Agemy Financial Strategies to start a conversation about your financial plan and the opportunities worth considering before the year ends.

This material is for informational and educational purposes only and should not be construed as individualized investment, tax, legal, or accounting advice, or as a recommendation to buy or sell any security or investment product. The information presented is based on rules and guidance available as of November 2026 and is subject to change. Tax laws and financial circumstances vary. Consult with qualified tax and legal professionals regarding your individual situation. Investment involves risk, including the potential loss of principal. No investment strategy or financial planning approach can guarantee a particular outcome.