2026 Year-End Tax Planning

As we start the fourth quarter in 2026, there’s still time to make smart year-end decisions that can shape your 2026 tax bill and long-term financial picture.

Recent tax law changes have adjusted deductions, credits, and retirement rules again for 2026, so this is a good time to review where you stand and decide whether any last-minute moves make sense.

This overview highlights key areas to discuss with your advisor and tax professional before year-end.

1. Maximize Tax-Advantaged Accounts

Employer retirement plans (401(k), 403(b), most 457 plans, TSP)

• In 2026, you can generally contribute up to $24,500 to these plans through salary deferrals.¹
• If you’re age 50 or older, you can add an $8,000 catch-up, for a total of $32,500 in employee contributions.²
• If you are ages 60–63, you are eligible for a “super” catch-up of up to $11,250 (plan-dependent).³
• For 2026, the IRA contribution limit is $7,500, or $8,600 if you’re 50 or older.⁴
• You generally have until the 2026 tax-filing deadline in April 2027⁵ to make 2026 IRA contributions, but planning now helps avoid a last-minute rush.
• 2026 HSA limits are $4,400 for self-only coverage and $8,750 for family coverage, plus a $1,000 catch-up if they’re 55 or older.⁶

Increasing contributions for your final 2026 paychecks may boost both long-term savings and tax benefits.

IRAs (Traditional & Roth)

Health Savings Accounts (HSAs)
If you are covered by an HSA-eligible high-deductible health plan:

HSAs carry a rare “triple” tax benefit: deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.⁷

2. Check RMDs and Consider Charitable Distributions (Age 70½+)

Required Minimum Distributions (RMDs)

• Most IRA and retirement plan owners now start RMDs at age 73 under current law.⁸
• If you’re already subject to RMDs, most 2026 withdrawals must be taken by December 31 to avoid penalties.⁹
• A QCD can satisfy part or all of your RMD while keeping that amount out of your taxable income.
• For 2026, the QCD limit has increased to $111,000 per person, indexed for inflation.¹¹
• QCDs must be sent directly from the IRA to a qualified charity and do not qualify if given to a donor-advised fund or grant-making private foundation.¹²

Qualified Charitable Distributions (QCDs)
If you’re 70½ or older and have a traditional IRA, you may be able to give directly to charity using a QCD¹⁰:

This can be a powerful way to support causes you care about while managing taxable income.

3. Charitable Deductions in 2026

New tax rules impact the deductibility of charitable contributions in 2026. Charitable contributions are now subject to a floor of 0.5% of AGI. Contributions below this threshold will not be deductible. Charitable deductions will be capped at the 35% tax bracket, even for taxpayers in the 37% bracket.¹³

Example:

A couple filing jointly with $900,000 in AGI plans to donate $100,000.

The tax benefit is calculated as follows:

$100,000 gift

Less $4,500 (0.5% AGI floor: $900,000 × 0.5%)

Leaves $95,500 eligible for deduction at 35%¹⁴

4. Put Investment Losses to Work

Year-end is a natural checkpoint for tax-loss harvesting in taxable investment accounts:

• Realizing losses on investments can offset realized capital gains.
• If losses exceed gains, up to $3,000 per year can typically offset ordinary income, with excess carried forward to future years.¹⁵
• Watch the wash-sale rule: if you sell an investment at a loss and buy the same or a “substantially identical” security within 30 days before or after the sale, the loss is generally disallowed for current tax purposes.¹⁶

This is also a good time to rebalance client portfolios back toward their target mix and review which investments are held in taxable vs. tax-advantaged accounts (asset location).

5. Evaluate Roth IRA Conversions 

Consider Roth IRA conversions to lock in future tax-free growth but carefully manage conversion amounts to avoid tax-bracket creep. Roth conversions may be most beneficial for someone who is retired but is not yet taking RMDs. By making Roth IRA conversions, you could effectively reduce future RMD income.

NOTE: Because conversions can affect Medicare premiums (IRMAA), Social Security taxation, and other credits, it’s important to model the impact.

6. Year-End Gifting and Estate Planning

If you are thinking about helping family members or reducing future estate taxes, 2026 offers several opportunities:

• The annual gift tax exclusion is $19,000 per recipient in 2026, meaning someone can give up to that amount to as many individuals as they like without using the lifetime exemption (currently $15,000,000 per person).¹⁷
• A married couple can effectively give $38,000 per recipient by combining their exclusions.¹⁸
• 529 education savings plans allow funds to grow tax-deferred and may offer state tax benefits; they can be part of a broader education and gifting strategy. A 529 plan allows you to front load 5 years of gifts to a 529 Plan. An individual can contribute up to $95,000 to a 529 Plan without gift consequences ($190,000 per couple).¹⁹

If you have a trust(s), late-year is a good time to confirm they are appropriately funded and consistent with your current wishes and family circumstances. In 2026, the One Big Beautiful Bill Act increased the lifetime exemption to $15,000,000 per person.²⁰ In 2025, the lifetime exemption was $13,990,000 per person.²¹ This now gives you an additional $1,010,000 ($2,020,000 per couple) in 2026.²² You may wish to utilize this additional gift amount to add to trusts held outside of your taxable estate.

Please reach out if you would like to review how any of these opportunities apply to your plan before year-end.

Disclosures

Investment advisory and financial planning services offered through Bleakley Financial Group, LLC, an SEC registered investment adviser, doing business as OnePoint BFG Wealth Partners (herein referred to as “OnePoint BFG”). For more information regarding OnePoint BFG including important disclosures, please visit https://adviserinfo.sec.gov/.

The third-party information contained herein is provided for informational and discussion purposes only. OnePoint BFG does not represent this third-party information as its own. While OnePoint BFG has gathered this information from sources deemed to be reliable, OnePoint BFG has not reviewed or verified any information input by your financial professional or that of the third-party source, nor can OnePoint BFG guarantee the completeness or accuracy of this data.

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Sources

1. Manulife John Hancock Investments, "2026 tax planning guide," MF5052408, December 2025, https://www.johnhancock.com/content/dam/jh-com/us/investor-relations-and-financial-reports/regulatory-filings/TRGFLY_Tax_Guide.pdf. See also Internal Revenue Service, "401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500," IR-2025-111, November 13, 2025, https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500.

2. Manulife John Hancock Investments, "2026 tax planning guide," MF5052408, December 2025, https://www.johnhancock.com/content/dam/jh-com/us/investor-relations-and-financial-reports/regulatory-filings/TRGFLY_Tax_Guide.pdf. See also IRS, IR-2025-111 (source 1). Calculation: $24,500 + $8,000 = $32,500.

3. Manulife John Hancock Investments, "2026 tax planning guide," MF5052408, December 2025, https://www.johnhancock.com/content/dam/jh-com/us/investor-relations-and-financial-reports/regulatory-filings/TRGFLY_Tax_Guide.pdf. See also IRS, IR-2025-111 (source 1), which states that the higher catch-up limit for participants aged 60, 61, 62 and 63 remains $11,250 for 2026.

4. Manulife John Hancock Investments, "2026 tax planning guide," MF5052408, December 2025, https://www.johnhancock.com/content/dam/jh-com/us/investor-relations-and-financial-reports/regulatory-filings/TRGFLY_Tax_Guide.pdf. See also IRS, IR-2025-111 (source 1): IRA limit of $7,500 and age 50+ catch-up of $1,100. Calculation: $7,500 + $1,100 = $8,600.

5. Fidelity Investments, "IRA contribution deadlines for 2026," October 21, 2026, https://www.fidelity.com/learning-center/smart-money/ira-contribution-deadline. See "Key takeaways," first bullet: the 2026 contribution deadline for Roth and traditional IRAs is April 15, 2027. See also Internal Revenue Service, Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs), https://www.irs.gov/publications/p590a (contributions for a tax year may be made up to the due date of the return, not including extensions).

6. Fidelity Investments, "HSA contribution limits and eligibility rules for 2026 and 2027," August 24, 2026, https://www.fidelity.com/learning-center/smart-money/hsa-contribution-limits.

7. National Association of Tax Professionals (NATP), "Health savings accounts and their triple tax benefits," https://www.natptax.com/news-insights/blog/health-savings-accounts-and-their-triple-tax-benefits/. Accessed October 29, 2026. See the section "The triple tax advantage of HSAs," which lists (1) tax-deductible contributions, (2) tax-free growth, and (3) tax-free withdrawals for qualified medical expenses. See also Internal Revenue Service, Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans, https://www.irs.gov/publications/p969, Health Savings Accounts (HSAs) section, list of HSA benefits (tax deduction for contributions; tax-free interest and other earnings; tax-free distributions for qualified medical expenses). Federal tax treatment only; state tax treatment may differ.

8. Eric Droblyen, "401(k) Required Minimum Distributions: What You Need to Know," Employee Fiduciary, modified October 15, 2026, https://www.employeefiduciary.com/blog/401k-required-minimum-distributions-what-you-need-to-know-0. RMD age is 73 for individuals born 1951 through 1959 and 75 for individuals born 1960 or later.

9. Eric Droblyen, "401(k) Required Minimum Distributions: What You Need to Know," Employee Fiduciary, modified October 15, 2026, https://www.employeefiduciary.com/blog/401k-required-minimum-distributions-what-you-need-to-know-0. The first RMD may be delayed to April 1 of the year after the account owner reaches RMD age; each subsequent RMD is due by December 31.

10. Fidelity Investments, "Qualified charitable distribution (QCD): Donate money from your IRA to charity," https://www.fidelity.com/retirement-ira/required-minimum-distributions-qcds. Accessed October 29, 2026. See "What's a qualified charitable distribution (QCD)?" at the top of the page: starting at age 70½, a QCD is a direct transfer from the IRA provider to a qualified charity and can count toward the year's RMD.

11. Fidelity Investments, "Qualified charitable distribution (QCD): Donate money from your IRA to charity," https://www.fidelity.com/retirement-ira/required-minimum-distributions-qcds. Accessed October 29, 2026. See "What are some rules for donating?" (contribution limit of $111,000 per individual) and the FAQ "What is the limit for QCDs?" (2026 limit; indexed for inflation).

12. Fidelity Investments, "Qualified charitable distribution (QCD): Donate money from your IRA to charity," https://www.fidelity.com/retirement-ira/required-minimum-distributions-qcds. Accessed October 29, 2026. The supporting text is in the "Frequently asked questions" section, which is collapsed by default. Expand "Can I distribute the funds and then gift them to a charity?" (funds must be paid directly from the IRA custodian to the charity) and "What charities qualify for a QCD?" (private foundations, donor-advised funds, and supporting organizations may not qualify). See also Greenleaf Trust, "Expansion of Qualified Charitable Distributions to Donor Advised Funds?," April 7, 2026, https://greenleaftrust.com/missives/expansion-of-qualified-charitable-distributions-to-donor-advised-funds/, which lists the charities excluded from QCDs under IRC 408(d)(8)(B)(i) as donor-advised funds, private foundations other than private operating foundations, and supporting organizations, and notes that a bill to allow QCDs to donor-advised funds is pending but not enacted.

13. Gil A. Nusbaum, "Navigating Charitable Giving in the Wake of New Tax Reform," National Philanthropic Trust, July 30, 2025, https://www.nptrust.org/philanthropic-resources/philanthropist/navigating-charitable-giving-in-the-wake-of-new-tax-reform/.

14. Hypothetical example for illustrative purposes only; it does not represent an actual client. Calculation by OnePoint BFG based on the 0.5% AGI floor and 35% cap described in source 13: $900,000 × 0.5% = $4,500; $100,000 - $4,500 = $95,500. Assumes the couple itemizes deductions and is in the 37% federal income tax bracket. Actual results depend on individual circumstances and other limitations, including AGI percentage limits on charitable deductions.

15. Vanguard, "Maximize your tax savings with tax-loss harvesting," https://investor.vanguard.com/investor-resources-education/taxes/offset-gains-loss-harvesting. Accessed October 16, 2026. The limit is $1,500 for married individuals filing separately.

16. Fidelity Investments, "Wash sale: Avoid this tax pitfall," August 28, 2026, https://www.fidelity.com/learning-center/personal-finance/wash-sales-rules-tax. See also Vanguard, "Maximize your tax savings with tax-loss harvesting," https://investor.vanguard.com/investor-resources-education/taxes/offset-gains-loss-harvesting. Accessed October 16, 2026.

17. Fidelity Investments, "What is the estate tax exemption?," February 3, 2026, https://www.fidelity.com/learning-center/personal-finance/what-is-the-estate-tax-exemption. See also Vanguard, "Superfunding a 529 plan: How it could benefit your estate," June 5, 2026, https://investor.vanguard.com/investor-resources-education/article/superfunding-a-529-plan.

18. Vanguard, "Superfunding a 529 plan: How it could benefit your estate," June 5, 2026, https://investor.vanguard.com/investor-resources-education/article/superfunding-a-529-plan. See also Fidelity Investments, "What is the estate tax exemption?," February 3, 2026, https://www.fidelity.com/learning-center/personal-finance/what-is-the-estate-tax-exemption.

19. Vanguard, "Superfunding a 529 plan: How it could benefit your estate," June 5, 2026, https://investor.vanguard.com/investor-resources-education/article/superfunding-a-529-plan. Calculation: $19,000 × 5 = $95,000 per individual; $95,000 × 2 = $190,000 per married couple. The five-year election must be reported on IRS Form 709; see Fidelity Investments, "What is the estate tax exemption?," February 3, 2026, https://www.fidelity.com/learning-center/personal-finance/what-is-the-estate-tax-exemption.

20. Fidelity Investments, "What is the estate tax exemption?," February 3, 2026, https://www.fidelity.com/learning-center/personal-finance/what-is-the-estate-tax-exemption. See also source 13, which attributes the increase to the One Big Beautiful Bill Act (H.R. 1).

21. Internal Revenue Service, Revenue Procedure 2024-40 (2025 basic exclusion amount of $13,990,000), as summarized in EY Tax News, "IRS releases standard deductions and exclusions for 2025, including estate and gift tax," October 23, 2024, https://taxnews.ey.com/news/2024-1952.

22. Calculation by OnePoint BFG based on sources 20 and 21: $15,000,000 - $13,990,000 = $1,010,000 per person; $1,010,000 × 2 = $2,020,000 per married couple.

OP #26-1156