The Questions Worth Asking Before December 31

The last stretch of the year fills up fast. Holidays, travel, wrapping up work, time with the people you love. Tucked in among all of it is a short list of money decisions that only count if they happen before the calendar turns.

You don’t need to know the tax code inside and out to get these right. You just need to know which questions apply to you. So this year, instead of a long list of rules, we’ve built our year-end letter around the questions we hear most from clients, plus a few we wish more people would ask.

Skim for the ones that fit your life right now. If one sparks a question, or you’d like our help putting a strategy in motion, reach out to your advisor before December 1. That gives us time to coordinate paperwork and transfers within Schwab’s year-end deadlines.

What we’re already working on

Some year-end work happens behind the scenes. Here’s what’s on our list for you between now and December 31.

Is anyone looking for tax savings in my portfolio?

Yes. We’re reviewing portfolios for opportunities to selectively harvest losses or put last year’s carry-forward losses to work, to offset gains. We won’t let taxes alone drive an investment decision, though. Every move has to make economic sense, too. And if we’re investing new cash in mutual funds, we’ll wait until after each fund’s year-end distribution date.

Should I be doing a Roth conversion this year?

Maybe. A partial Roth conversion can make sense in some years and not others, depending on your income, your bracket, and where you’re headed. We’ll review your tax profile and personal circumstances, then weigh the potential benefits and tax cost together with your tax preparer.

I’m 73 or older. Will my required minimum distribution be taken care of?

For the IRAs and other tax-deferred retirement accounts we manage, yes. We’ll see that your full required minimum distribution (RMD) comes out before year-end. If you have retirement accounts held elsewhere, let us know so nothing slips through.

I inherited an IRA. What do I need to do?

We’ll take any required minimum distribution (RMD) from your inherited IRA this year. If the 10-year rule applies to you, we’ll also work with your tax preparer to plan additional withdrawals across that window in the most tax-efficient way we can.

Saving: Am I putting away everything I can?

Retirement and health savings accounts are some of the simplest tax tools you have. Here’s what’s available for 2026.

Am I on track to max out my 401(k) or 403(b)?

If you’re eligible, you can defer up to $24,500 of your income into a 401(k) or 403(b) for 2026. Payroll contributions have to happen by December 31, so now is the time to check your year-to-date total and bump up your final paychecks if there’s room.

I’m 50 or older. What extra tax-deferred savings are available to me?

On top of the $24,500, you can make a catch-up contribution of up to $8,000. If you’re between 60 and 63, that catch-up limit rises to $11,250. You can also add $1,100 to your IRA contribution, and once you turn 55, an extra $1,000 to a Health Savings Account.

I earned more than $150,000 last year. Does that change my catch-up?

It might. Starting in 2026, if your prior-year wages topped $150,000, your catch-up contributions have to go in as Roth (after-tax) dollars, as long as your employer’s plan offers a Roth option. You give up the deduction today in exchange for the potential of tax-free withdrawals later. It’s worth a quick check with HR on how your plan is handling the change.

Can I still contribute to an IRA for 2026?

Yes, if you have earned income. You can contribute up to $7,500, or $8,600 if you’re 50 or older, and you have until April 15, 2027. If you also contribute to a workplace retirement plan, the tax-deductibility will phase out at higher income levels. For eligible IRAs, we’ll coordinate the transfer of funds before the deadline.

I have a high-deductible health plan. How much can go into my HSA?

Up to $4,400 for individual coverage or $8,750 for family coverage, plus a $1,000 catch-up if you’re 55 or older. You have until April 15, 2027, to fund your tax-deferred Health Savings Account for 2026.

Deductions: What’s changed this year?

A few numbers moved in 2026, and one is brand new if you’re 65 or older.

What can I expect from the standard deduction?

It went up. For 2026, the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly. If you’re 65 or older, add $2,050 if you’re single, or $1,650 for each eligible spouse if you’re married filing jointly. A bigger standard deduction means fewer people come out ahead by itemizing, and that changes the math on charitable giving (more on that below).

I’m 65 or older. Is there a new deduction for me?

Yes. You may be able to claim an additional senior deduction of $6,000 ($12,000 for married couples filing jointly when both spouses qualify), whether you itemize or take the standard deduction. It begins to phase out above $75,000 of income for single filers and $150,000 for joint filers, and it’s fully phased out at $175,000 and $250,000.

Giving: How do I make my generosity go further?

Whether you’re supporting a cause you care about or the people closest to you, how and when you give matters almost as much as how much.

I take the standard deduction. Do my charitable gifts still help on my taxes?

Starting in 2026, they can. Even if you don’t itemize, you can deduct up to $1,000 ($2,000 for married couples filing jointly) in cash gifts made directly to public charities. One catch: gifts to donor-advised funds and gifts of appreciated securities don’t qualify for this deduction.

Should I give every year, or bunch my giving?

With the standard deduction this high, bunching often makes sense. Grouping two or more years of gifts into a single year can push you past the point where itemizing pays off, and then you take the standard deduction in the off years. A donor-advised fund makes this easier: you fund it with one larger contribution, take the deduction that year, and then recommend grants to your favorite charities on your own timeline.

Keep in mind that beginning in 2026, itemized charitable deductions are reduced by 0.5% of your adjusted gross income (AGI). For example, someone with a $200,000 AGI would see their charitable deduction on Schedule A reduced by $1,000.

I give through Qualified Charitable Distributions from my IRA. What’s the deadline?

December 15. Please make sure every QCD check has been received and deposited by the nonprofit by then. That’s what allows the gift to count toward your required minimum distribution and stay out of your taxable income.

Is there a better way to give than writing a check?

Often, yes. Giving shares of low-basis stock or a mutual fund to a 501(c)(3) organization or donor-advised fund can earn you a deduction while removing those unrealized capital gains from your portfolio and your estate at the same time.

There are limits. Cash contributions to a donor-advised fund are deductible up to 60% of AGI, and gifts of long-term appreciated stock are generally capped at 30% of AGI. If your gifts go over the limit, the unused deduction can generally carry forward for up to five more tax years. We’re happy to talk through which holdings make the most sense to give.

How much can I give to family this year?

Up to $19,000 per recipient under the annual gift tax exclusion. Direct payments to a school for tuition or to a provider for medical bills can be made on top of that, so you can cover a grandchild’s tuition and still make a separate gift.

How do 529 plans affect my gifting?

529 college savings plans offer real tax advantages, and they’re most powerful when they’re funded early, giving tax-free growth more time to work for qualified education expenses.

They also come with a special gifting rule. Although the annual exclusion is $19,000, you can contribute a lump sum of up to $95,000 per child to a 529 plan as if it were spread over five years. The tradeoff: that lump sum uses your annual exclusion for that child for all five years, so it’s worth planning alongside any other gifts you make to them.

Your year-end deadlines at a glance

A note on taxes and your plan

Treehouse Wealth Advisors is not a CPA firm, and we don’t give tax advice. Your CPA or tax preparer is the right person to confirm how any of this applies to your return.

But taxes touch almost every part of your financial plan: how much you save, which accounts you draw from, how and when you give, and what you pass on. We think it’s important you understand how these decisions affect your overall financial plan, so you can make them with confidence and bring sharper questions to your tax professional. Where it helps, we’re glad to work alongside them.

Money is a tool, and year-end is a good moment to check that yours is pointed where you want it to go. If any of these questions apply to you, reach out to your advisor before December 1. We’ll handle the coordination, paperwork, and transfers from there.

Here’s to a strong finish to 2026,

The Treehouse Wealth Advisors Team