The end of the year is your last chance to make financial moves that affect this year's taxes. Once January 1 hits, the books close. Here's what to check, in order of impact.
Review Your Year-to-Date Tax Withholding
Pull your most recent pay stub and look at your year-to-date federal tax withheld. Compare it to your estimated tax liability using our Gross to Net Calculator. If you've had too much withheld, you'll get a refund, but you've been giving the government an interest-free loan all year. If too little has been withheld, you might owe at tax time, plus potential penalties.
Max Out Your 401(k) If You Can
The 2026 contribution limit is $23,500 ($31,000 if you're 50+). Check your year-to-date contributions against the limit. If you have room, consider increasing your contribution percentage for your remaining paychecks. Remember: 401(k) contributions reduce your taxable income, so the "cost" per paycheck is less than the amount contributed.
Use Your FSA Balance
Flexible Spending Account funds typically expire December 31 (some plans offer a grace period or $640 rollover). Check your balance and schedule qualifying expenses: prescriptions, dental work, new glasses. Do it before the deadline.
Verify Your Personal Information
Name changes, address updates, and bank account changes should be finalized before year-end to ensure your W-2 is accurate when it arrives in January.
Check Your Beneficiaries
Life changes (marriage, kids, divorce) should trigger beneficiary updates on your 401(k), life insurance, and any employer-sponsored benefits. This takes 10 minutes and prevents major headaches later.
Review Your Benefits Enrollment
Open enrollment for health insurance, dental, vision, and other benefits usually falls in November. If you haven't reviewed your options, do it now. The default isn't always the best option, especially if your health needs or family situation has changed.
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