Resources · Checklist
Year-end tax planning. The moves you can still make.
Between October 1 and December 31 is when meaningful tax decisions actually happen. After that, the year is locked in and April becomes a math problem, not a strategy one. This checklist walks through the moves still on the table — for individuals, business owners, and households — and the deadlines for each.
10 min read· Twin Cities, Minnesota
The short version
- Hard December 31 deadlines: 401(k) employee deferrals, charitable contributions, HSA contributions via employer payroll, Roth conversions, tax-loss harvesting, equipment placed in service.
- April 15 deadlines (for prior year): Traditional/Roth IRA contributions, HSA contributions (if not through payroll), SEP-IRA contributions for self-employed.
- Calendar matters more than you’d think.A donation made December 31 counts for this year; January 1 doesn’t. Same with equipment purchase and placed-in-service.
Retirement contributions — biggest single lever.
401(k) / 403(b) employee deferrals. Up to $23,500 in 2026 (plus $7,500 catch-up if age 50+). MUST be funded via payroll by December 31. Talk to your HR if you need to max out the rest in your last few paychecks.
Traditional IRA / Roth IRA. Up to $7,000 ($8,000 if 50+). Can be funded any time up to the April 15 filing deadline. Traditional is deductible (with income limits if you’re covered by a workplace plan); Roth has income limits but grows tax-free.
SEP-IRA. For self-employed people. Up to 25% of net self-employment income, max $70,000 in 2026. Fund by your filing deadline including extension (October 15 if extended).
Solo 401(k). For self-employed. Employee deferral up to $23,500 + employer contribution up to 25% of compensation, total $70,000 in 2026. Plan must be established by December 31; contributions can be made until filing deadline.
HSA. If you have an HSA-eligible high-deductible health plan: $4,300 individual, $8,550 family (2026). Fund through employer payroll by December 31 (saves FICA) or contribute personally by April 15.
Charitable giving — bunch when it matters.
With the high standard deduction, most people don’t itemize anymore — which means smaller annual donations aren’t saving any tax. The fix is bunching.
Bunching means concentrating multiple years of donations into one tax year so itemized deductions exceed the standard deduction that year. Then take the standard deduction in off-years.
Tools that make bunching cleaner:
- Donor-Advised Fund (DAF): contribute a lump sum (say, 3 years of giving) in one year, take the full deduction now, then distribute to charities over multiple years.
- Appreciated stock or mutual funds: donate shares held over 1 year instead of cash. Deduction is the full market value AND you skip the capital gain. Charity sells the stock tax-free. This is one of the most efficient gifts available.
- Qualified Charitable Distribution (QCD):if you’re 70.5+, donate directly from an IRA to charity. Counts toward your RMD and doesn’t show as income.
Deferring or accelerating income.
If you’re self-employed or run a cash-basis business, you have some control over which year income lands in:
- Defer income.Delay invoicing clients until late December so payments arrive in January. Useful when this year’s income spiked but next year looks lower.
- Accelerate income. Invoice clients in November so payments land before December 31. Useful when this year was low but next year looks higher (about to enter a higher bracket).
- Accelerate expenses. Pay business expenses (subscriptions, professional fees, supplies) in December even if technically due January.
- Section 179 / bonus depreciation.Equipment placed in service by December 31 can be fully expensed (limits apply). The phrase “placed in service” matters — buying and shipping isn’t enough; you need to be using it.
Investment moves.
Tax-loss harvesting. Sell positions trading below your cost basis to realize losses that offset gains. Can offset up to $3,000 of ordinary income per year beyond that, with the rest carrying forward indefinitely. Watch the wash-sale rule: can’t buy back a substantially identical security within 30 days.
Roth conversion.If you’re in a lower bracket this year (between jobs, retired but pre-RMD), converting some Traditional IRA to Roth locks in the lower rate. Pay tax now, never again.
Capital gains harvesting. If your taxable income is below ~$96K married / $48K single, long-term capital gains are taxed at 0% federal. Realize gains intentionally up to that threshold.
529 contributions. Minnesota offers a state tax credit (not just a deduction) for 529 contributions to the Minnesota College Savings Plan. $500 credit max for joint filers; phases out at higher incomes.
Business-owner specific moves.
- S-corp reasonable salary review.If you’re an S-corp, run the year-end check: did you actually pay yourself a reasonable salary? Last-minute payroll runs are possible but messy — cleaner to plan this in October.
- Equipment purchases. Section 179 + bonus depreciation are most valuable when you’re in a high bracket. Coordinate with cash flow: big tax deduction doesn’t help if it strangles operations.
- Retirement plan setup. Solo 401(k) and SEP-IRA can both be funded next year for this year — but the plan structure has to be in place by December 31 in some cases. Solo 401(k) especially: plan must exist by 12/31 to count for the current year.
- Health insurance premiums. Self-employed health insurance premiums are deductible above the line. Confirm your premiums are paid through the business and reported on Schedule 1.
- Entity election timing. If S-corp election makes sense for next year, file Form 2553 by March 15 of next year. Late elections work but the deadline matters.
The personal life-event moves.
- Marriage / divorce. Filing status is based on your marital status on December 31. Marriage on December 30 means married-filing-joint for the whole year; divorce final January 1 means single for the prior year.
- New baby. Born December 31 = full-year dependent. Born January 1 = next year.
- First-year RMD. If you turned 73 this year, your first Required Minimum Distribution from retirement accounts can be delayed until April 1 of next year. Penalty for missing it is steep (25% of the missed amount).
- Home sale. If you sold (or plan to sell) a primary residence, gather closing statements, improvement records, and basis documentation now. The $250K/$500K primary-residence exclusion has specific rules.
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