As the year comes to a close, we’ve put together a checklist to help you review key planning opportunities, stay ahead of upcoming deadlines, and head into the new year with confidence.
Investment Strategies
Tax-Loss Harvesting
Throughout the year, Athos has sought opportunities to harvest tax losses where appropriate. Clients using direct indexing may have additional tax-loss harvesting opportunities.
For accounts held outside Athos’s management, review unrealized losses and consider whether realizing those losses could help offset capital gains while keeping your portfolio aligned with your investment goals.
Be mindful of the wash-sale rule: selling a security at a loss and purchasing the same or a substantially identical security within 30 days before or after the sale generally disallows the loss deduction for that sale.
Coordinate trading across accounts, including IRAs, to help avoid unintended wash sales.
Review Stock Options
If you have vested, unexercised incentive stock options (ISOs), consider whether exercising before year-end aligns with your financial plan.
Exercising ISOs may trigger alternative minimum tax (AMT). Work with your tax advisor to evaluate the potential tax impact and cash needed before proceeding.
Savings & Investments
Review your emergency savings and replenish them as needed.
Determine how much of your year-end bonus to set aside for near-term needs, savings, and long-term investments.
Review planned contributions to your investment accounts and consider automatic recurring transfers to support consistent investing.
Income & Cash Flow
Keep Athos informed of changes to your income, anticipated bonuses, or cash flow needs.
Work with Athos to prioritize how additional income can support your financial goals, balancing near-term needs with long-term priorities.
Retirement & Savings
IRA Contributions*
Make your 2026 IRA contributions by April 15, 2027.
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Contribution limit:
$7,500
Catch-up contribution (age 50+):
+$1,100
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Contribution limit:
$7,500
Catch-up contribution (age 50+):
+$1,100
Contributions are not tax-deductible. Eligibility is subject to income limits:
Single / head of household: $153,000–$168,000
Married filing jointly: $242,000–$252,000
Contributions are reduced within these income ranges and unavailable at or above the upper limit.
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The taxable portion of a Roth conversion is included in ordinary income for the year of conversion.
Unlike IRA contributions, Roth conversions must be completed by December 31, 2026, to count for the 2026 tax year; there is no annual dollar limit on conversions.
If you are under age 59½, withdrawing taxable converted amounts within five tax years of a conversion may trigger a 10% early-distribution penalty, unless an exception applies.
Roth IRAs offer tax-free qualified withdrawals and no required minimum distributions during the original owner’s lifetime.
Employer-Sponsored Plans*
Review your 2026 contributions and adjust payroll elections before your final paycheck of the year, if needed.
Confirm contribution deadlines with your employer or plan administrator; employer contribution deadlines may extend beyond year-end.
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Employee contribution limit:
$24,500
Additional catch-up contribution, if the plan allows:
Ages 50–59 and 64+: $8,000, for a total of $32,500
Ages 60–63: $11,250, for a total of $35,750
The higher catch-up replaces—not adds to—the standard catch-up amount
Traditional and Roth contributions share the applicable employee contribution limit; they are not separate allowances.
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Standard employee contribution limit:
$17,000
Additional catch-up contribution, if the plan allows:
Ages 50–59 and 64+: $4,000, for a total of $21,000.
Ages 60–63: $5,250, for a total of $22,250.
The higher catch-up replaces—not adds to—the standard catch-up amount.
Certain qualifying SIMPLE plans have a higher employee contribution limit of $18,100, with a different standard catch-up limit of $3,850. Confirm your plan’s applicable limits with your employer or plan administrator.
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Employer contribution limit:
The lesser of $72,000 or 25% of eligible employee compensation.
For self-employed individuals, a special calculation applies—generally 20% of net self-employment earnings after deducting one-half of self-employment tax.
Compensation considered for contribution calculations is capped at $360,000 for 2026.
SEP contributions are employer-funded; employee salary deferrals and SEP catch-up contributions are not permitted. Self-employed owners contribute in their capacity as the employer.
Contributions generally must be made by the due date of the employer’s federal income tax return, including extensions—not necessarily by December 31, 2026.
*Consult your employer, plan administrator, or tax advisor to confirm eligibility, contribution limits, and deadlines, as plan provisions and individual circumstances may vary.
RMDs
Take your required minimum distributions (RMDs) by December 31, 2026, if applicable.
If 2026 is your first RMD year, you can generally delay your first distribution until April 1, 2027. However, your second RMD will still be due by December 31, 2027, resulting in two distributions in the same tax year.
Missing an RMD deadline can result in a 25% penalty on the amount not withdrawn, reduced to 10% if corrected within the applicable correction window. Contact Athos promptly if you believe you missed a distribution.
HSA & FSA
Review your health savings account (HSA) contributions and consider maximizing them if you meet HSA eligibility requirements. Contributions from you and your employer count toward the annual limit.
You generally have until April 15, 2027, to make HSA contributions for 2026.
Use remaining health FSA funds before your plan’s spending deadline. Depending on your employer’s plan, you may be able to carry over up to $680 of unused 2026 funds into 2027 or use a grace period of up to 2½ months—but not both. Confirm your plan’s rules and claim-submission deadlines.
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2026 contribution limits:
$4,400 for self-only coverage.
$8,750 for family coverage.
Additional catch-up contribution for eligible individuals age 55+:
$1,000
Eligibility and contribution limits may be affected by partial-year coverage or Medicare enrollment. Confirm your eligible contribution amount before contributing.
Estate Planning & Annual Giving
Estate Planning
Review your estate plan to ensure it reflects your current wishes, financial goals, and major life changes. Update wills, trusts, powers of attorney, and healthcare directives as needed.
Review gifting and estate planning opportunities with Athos and your estate attorney. The 2026 federal estate and gift tax exemption is $15 million per individual, or $30 million combined for married couples, before accounting for previously used exemption amounts. Coordinated planning and applicable tax filings may be needed to preserve both spouses’ exemptions.
Annual Gift Exclusion
For 2026, you may give up to $19,000 per recipient—or $38,000 combined for married couples—without using your lifetime estate and gift tax exemption. The exclusion applies separately to each recipient.
Gifts above the annual exclusion generally require a gift tax return and use a portion of your remaining lifetime exemption, but do not necessarily result in gift tax owed. Coordinate with your tax advisor, including when electing to split gifts with your spouse.
Debt & Liability Management
Review High-Interest Debt
Review outstanding debt, prioritizing balances with the highest interest rates. Paying down higher-rate debt first can help reduce overall interest costs.
Work with Athos to evaluate whether refinancing or repayment fits your cash flow needs and broader financial goals.
Evaluate Opportunity for Early Payoff
Consider using excess cash to reduce debt while maintaining adequate emergency savings and funds for near-term expenses.
Prioritize repayment based on borrowing costs and your financial goals—not simply the size of the balance. Paying off smaller balances may simplify cash flow, while targeting higher-rate debt generally saves more interest.
Charitable Giving & Philanthropy
Charitable Donation Options
Consider donating cash, appreciated securities, or private company stock as part of your charitable giving strategy. Coordinate complex gifts early, as additional documentation, valuation, and acceptance requirements may apply.
Work with Athos and your tax advisor to determine which assets and giving strategies best align with your philanthropic and tax-planning goals.
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If you are age 70½ or older at the time of the distribution, you may transfer up to $111,000 directly from an eligible IRA to qualifying charities in 2026 and exclude the eligible amount from taxable income.
If both spouses qualify and have separate IRAs, each may make up to $111,000 in QCDs, for a combined total of $222,000. Each spouse’s limit applies separately.
QCDs must be paid directly from your IRA custodian to an eligible charity.
QCDs can satisfy all or part of your RMD and do not require itemizing deductions. You cannot also claim a charitable deduction for the same amount.
Donor-advised funds and most private foundations are not eligible QCD recipients. Confirm the charity’s eligibility before initiating the transfer.
Coordinate with Athos and your IRA custodian well before December 31, 2026, to allow sufficient processing time.
Donor-Advised Fund (DAF)
Consider a donor-advised fund to make a charitable contribution now and recommend grants to eligible charities over time. Contributions are irrevocable, and any available deduction is subject to applicable tax rules and limits.
Discuss whether combining multiple years of planned giving into a single year could improve your tax outcome under the new deduction rules.
2026 Charitable Deduction Changes
If you itemize deductions, charitable contributions generally are deductible only to the extent they exceed 0.5% of adjusted gross income, subject to other applicable limits.
If you do not itemize, you may deduct up to $1,000 in qualifying cash contributions, or $2,000 if married filing jointly. Contributions to donor-advised funds do not qualify for this deduction.
For taxpayers in the 37% federal bracket, a new limitation generally caps the federal tax benefit of itemized deductions, including charitable deductions, at 35%. Review the potential impact with your tax advisor.
Employer Match
Check whether your employer offers a charitable matching program to increase the impact of your donations.
Year-End Deadlines
Review provider deadlines early to allow sufficient time for donations to be completed in 2026.
Athos clients should submit year-end donation requests to their advisor by December 15, 2026. Requests received after this date will be handled on a best-efforts basis, and completion by year-end cannot be guaranteed. Complex gifts may require additional lead time.
Tax deductions, credits, and retirement plan contributions are subject to eligibility requirements and applicable limits, including those based on income, filing status, eligible expenses, and employer retirement plan coverage. Traditional IRA contributions may not be fully deductible, and eligibility to contribute directly to a Roth IRA may be reduced or eliminated based on income. Charitable deductions and qualified charitable distributions are also subject to specific requirements and limitations. Consult IRS guidance and your tax advisor to determine how these rules apply to your individual circumstances.
