The final months of the year can sneak up quickly, and with them come deadlines, decisions, and distractions. Before the holiday season takes over your calendar, fall can be a valuable window to revisit your financial strategy and make sure you’re closing out the year with intention.
Whether you’re looking to manage taxes or retirement contributions, or get organized before 2026 begins, now is the time to take action.
We’ve put together a practical list of year-end moves to consider—some time-sensitive, others smart to revisit annually. While this list isn’t exhaustive, it can be a helpful starting point as you think about what needs attention.
Tax-Loss Harvesting
While we often encourage clients to stay focused on long-term investment goals—regardless of short-term market movements—there are times when strategic action might help manage your tax situation. One such opportunity is tax-loss harvesting.
Tax-loss harvesting involves selling an investment that has declined in value and using the realized loss to offset capital gains. In some cases, you might be in a position to replace the investment with a reasonably similar asset. If your losses exceed your gains during the year, you might be able to deduct as much as $3,000 in ordinary income. You can also carry forward any excess losses to offset capital gains and income tax in future years.1
That said, this strategy comes with important rules. To avoid triggering the IRS’s wash sale rule, you must wait at least 30 days before repurchasing a substantially identical security, or the loss could be disallowed.2
Remember, this article is for informational purposes only and is not a replacement for real-life advice. Consult your tax, legal, and accounting professionals before modifying your tax strategy.*
Roth IRA Conversions
This time of year is often a good opportunity to evaluate whether a Roth IRA conversion makes sense.
Converting a traditional IRA to a Roth IRA means paying taxes on the amount converted now, but potentially managing taxes on future withdrawals. This can be appealing if you expect to be in a higher tax bracket later in life or want to manage future required minimum distributions (RMDs).3
Keep in mind that the amount converted is treated as taxable income in the year of the conversion, which can lead to a larger-than-expected tax bill. To manage that impact, some individuals opt to convert gradually—rolling over a portion each year—while others wait for a lower-income year to use the strategy.3
The primary benefit of a Roth IRA is that qualified withdrawals—those made after age 59½ and after meeting the five-year holding requirement—are tax-free. Unlike traditional IRAs, the original owner of the Roth IRA isn’t subject to RMDs, which can make them a useful estate management tool.4
That said, Roth conversions aren’t right for everyone. Before making any decisions, it’s important to weigh the pros and cons carefully and work with a tax, accounting, or legal professional to understand the tax consequences. A financial professional can help determine if the conversion fits with your overall strategy.*
Catch-Up Employer-Sponsored Account Contributions
If you are still working and participating in an employee-sponsored 401(k), 403(b), governmental 457(b), or SIMPLE IRA and are at least age 50 by the end of the year, you can make a catch-up contribution to your account. This is one way to put away more for retirement in these tax-advantaged vehicles. Furthermore, starting in 2025, the Secure Act 2.0 includes a provision that increases the catch-up contribution limit if you turn 60, 61, 62, or 63 (not age 64) by the end of the year.
Refer to the chart below for details on the type of account, age, contribution limits, and catch-up amounts.5
529 Contributions
While 529 college savings plans do not have firm contribution deadlines, making contributions before year-end may offer some opportunities. Many families use this time to reassess their financial priorities, and education savings often rise to the top of the list, especially with year-end gifting in view.
Making Your Year-End Assessment
As we move into the final quarter of the year, it’s a smart time to step back, review your progress, and make any adjustments that can strengthen your financial position going into 2026.
We are focused on helping clients make informed, proactive decisions, especially when year-end strategies can create meaningful opportunities.
Before We Go*
We discussed many concepts and ideas, so we wanted to take a moment to explain the rules and restrictions for certain types of accounts. Remember, this article is for informational purposes only and is not a replacement for real-life advice. Consult your tax, legal, and accounting professionals before modifying your tax strategy.
Once you reach age 73, you must begin taking RMDs from a traditional IRA in most circumstances. Withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.
Similarly, once you reach age 73, you must begin taking required minimum distributions from a SEP-IRA, Simple IRA, and other defined contribution plans. Withdrawals are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.
In most circumstances, you must begin taking required minimum distributions from your 401(k) or other defined contribution plan in the year you turn 73. Withdrawals from your 401(k) are taxed as ordinary income, and if taken before age 59½, may be subject to a 10% federal income tax penalty.
To qualify for tax-free and penalty-free earnings withdrawals, Roth IRA distributions must meet a five-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals can also be taken under certain other circumstances, such as the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals.
A 529 plan is a tax-advantaged college savings plan. Before choosing a plan, it's important to consider not only the state tax treatment but also any associated fees and expenses. Availability of a state tax deduction will depend on your state of residence, as state tax laws and treatment may vary from federal tax laws. If you make nonqualified distributions, earnings will be subject to income tax and a 10% federal penalty tax.
*Primerica representatives are not financial or estate planners, or tax advisors. For related advice, individuals should consult an appropriately licensed professional.
1 Fidelity, March 26, 2025
2 Fidelity, May 30, 2025
3 Investopedia, November 10, 2024
4 Investopedia, March 30, 2025
5 Lord Abbett, June 2025