Year-End Tax Playbook:

IRA Moves & 2026 Outlook

As the year winds down, you may be thinking about holiday plans and tying up a few loose ends. But this time of year is also one of the most important time periods to take a closer look at your tax situation, IRA strategy, deductions, and overall financial picture.

At iWealth, we spend the last several weeks of the year helping clients make thoughtful decisions that set them up nicely for the year ahead. This is the point in the year when thoughtful tax planning and financial decisions can influence your tax filing for 2025 and help set a clear direction and strategy for 2026 and beyond.

In today’s article, we’ll dissect some of the most frequently searched questions related to year-end tax planning and provide insights on how you can positively position your financial circumstances for the new year.

What IRA moves should you consider before December 31?

Many families use the end of the year to finalize contributions, organize account changes, and review tax minimization opportunities. For example, while some IRA contributions can technically be made up to the tax filing deadline, the end of the year remains an important deadline for taking certain actions.

One reason is simple: getting money invested earlier helps it start working sooner and extends the compounding timeline.

Traditional IRA contributions may be deductible depending on your income and whether you participate in a workplace retirement plan. (1) Whether you’re in Minnesota or beyond, reviewing this with a one of our iWealth financial planners before December 31 is helpful, especially if you’re already thinking ahead to your 2026 return.

Roth IRA contributions also raise frequent questions, primarily regarding income eligibility and whether a backdoor Roth approach is suitable for your specific situation. (2) This is where a coordinated conversation between your financial advisor and accountant becomes especially important.

Beneficiary reviews are also another year-end priority. It’s an administrative detail that may seem minor. Yet, changes in your family situation, such as marriage, divorce, the arrival of new children or grandchildren, or the loss of a loved one, make regular updates an essential part of the planning process.

Finally, year-end often brings up the topic of Roth conversions. Many people ask whether converting now or converting later may be more beneficial.

Rather than making these financial decisions on your own, consider partnering with the iWealth team, which can guide you through various investment and tax scenarios, taking into account your income expectations and potential changes in your 2026 tax strategy.

Is a year-end meeting with your tax accountant worth it?

For most people, this is a strong yes. In fact, this is one of the most important steps you can take for 2025 (looking backwards) and 2026 (looking forward).

Meeting before year-end allows you to review opportunities that cannot be adjusted once 2026 arrives, such as capital gains timing, charitable gift planning, Roth decisions, deductions, and the potential for unexpected income.

This early meeting also helps uncover opportunities for 2025. Many people don’t realize that decisions around capital gains harvesting, Roth IRA eligibility, withholding adjustments, or charitable giving strategies can benefit from planning strategies rather than reacting to situations during tax season.

Our Minnesota-based financial advisors in can coordinate with your tax professional, once we have your approval, so both teams are on the same page, whether you live in Minnesota or across the states. This helps you avoid conflicting advice and duplicate fees; a shared understanding also often brings more clarity to your year-end decisions.

Which deductions and tax strategies deserve closer attention in December?

This is a question we are frequently asked, and for good reason. December is a natural checkpoint for identifying missed deductions or changes in income or savings rates that may influence your return.

For example, charitable giving is one area where timing matters. Gifts must be completed by December 31 to count for the current tax year, whether you give to family or to charitable organizations. For those who itemize deductions, this can significantly impact your year-end financial decisions.

Tax-loss harvesting is another topic that iWealth clients frequently ask about. In years with uneven market performance, realizing losses from weaker investments can help offset gains from more profitable investments. Because this must be coordinated with your broader investment strategy, iWealth handles this within the overall portfolio plan rather than a singular tax maneuver.

Some taxpayers also ask whether prepaying certain expenses is helpful. The answer depends on your filing status and whether you itemize deductions. This is another reason that a conversation with your financial planner and tax accountant is more valuable before December 31.

How should retirees approach year-end planning?

Retirees in Minnesota and across the United States often have unique year-end questions, particularly regarding Required Minimum Distributions (RMDs), Social Security benefits, and charitable giving strategies.

RMDs must be completed by December 31 if you are required to take them.

If you’re planning to use a Qualified Charitable Distribution (QCD) to support your favorite causes, it’s essential to start early. At iWealth, we can help you initiate QCDs in early December to ensure processing deadlines are being met and charitable organizations receive funds promptly.

Minnesota’s state tax code also creates planning differences compared to federal regulations. Our financial advisors in Minnesota can review these with you during year-end meetings to help you see the complete picture of how withdrawals, taxable income, and retirement cash flow may interact. Our iWealth advisors also coordinate with tax professionals in whichever state our clients reside.

What should investors know about the 2026 tax outlook?

A significant discussion point is the expiration of specific provisions of the Tax Cuts and Jobs Act, currently scheduled for 2026. This may result in adjustments to income brackets, standard deductions, and estate tax thresholds. While no one knows which proposals may or may not be enacted, understanding possible outcomes helps determine today’s planning conversations.

This becomes especially important when evaluating Roth conversions, charitable giving strategies, and income timing between tax years. Rather than focusing on predictions, our team helps clients consider the range of possible adjustments, enabling them to approach 2026 with confidence rather than uncertainty.

What does the economic outlook look like heading into 2026?

Economist forecasts are generally optimistic for 2026, noting moderating inflation trends, declining interest rates, and more stable markets. No one can predict how markets will perform in the future; that requires a crystal ball. However, informed long-term planning does not rely on predictions; it depends on staying committed to your long-term strategies.

At iWealth, we take a long-term perspective and encourage clients to avoid making emotional decisions based solely on short-term fluctuations. Our investment process and personal planning conversations reflect that mindset.

What does a year-end review look like at iWealth?

A year-end review with iWealth feels more like a practical check-in than a formal meeting. We sit down with you, walk through where things stand, look for short-term opportunities to improve results, and help you get organized for the year ahead. Together, we’ll review your tax opportunities, retirement outlook, state specific tax considerations, and assess how your portfolio is positioned for the new year. It’s a straightforward conversation designed with the goal of helping you feel more in control.

Behind the scenes, our advisors and service team specialists handle the details, including gathering paperwork, coordinating with your tax preparer, updating forms, and monitoring key deadlines. Many clients tell us this meeting brings clarity and direction they didn’t realize they were missing.

Year-end planning doesn’t have to feel like a heavy weight on your shoulders. When you take a little time to review your IRA strategy, deductions, charitable giving, and the shifting environment heading into 2026, you create a more efficient, intentional path for the new year.

And if you’re looking for Minnesota financial advisors who combine personal attention with practical planning, iWealth is always ready to walk through the process with you, one thoughtful step at a time. Schedule time to chat with our retirement planning specialists.

Disclosures:

1) Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.

2) Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.or recommendations for any individual.