Just 16% of U.S. adults feel financially fulfilled, while 83% feel financial stress, strain, or uncertainty, which impacts their mental and physical health, according to a national study by Edward Jones and Gallup released in June 2026. If you’re part of the latter, now’s the time to fall into some smart financial habits.
With the end of the year quickly approaching, making these six important money moves before Dec. 31 can help you improve your financial position, reduce your financial fears, and potentially lower your 2026 tax bill.
- Revisit Workplace Retirement Accounts: If you’re enrolled in an employer-sponsored retirement account, like a 401(k) or 403(b), there’s still time to maximize your contributions for the year. Pre-tax payroll contributions to these tax-deferred retirement accounts reduce your taxable income, thus lowering your tax bill.
The 2026 contribution limit is $24,500, or $32,500 if you’re age 50 or older. If your employer’s plan allows it, a super catch-up contribution is available if you’re age 60-63, allowing for a potential total contribution of $35,750. There’s also an important change for 2026: Employees with more than $150,000 in 2025 Social Security wages earned from the employer sponsoring the retirement plan generally must make their catch-up contributions as after-tax Roth contributions.
If able, adjust your contributions to maximize your tax-deferred savings for the remainder of the year—especially if your employer matches contributions. If your employer offers a retirement contribution match, it’s generally recommended to at least contribute up to the match percentage to collect that “free” money and accelerate your retirement savings growth. - Fund Your IRA: Depending on your income, you may be eligible to make tax-deductible contributions to a traditional individual retirement account (IRA) or after-tax contributions to a Roth IRA instead of, or in addition to, an employer plan.
For 2026, the contribution limit to all IRAs is $7,500, plus an additional $1,100 catch-up contribution if you’re age 50 or older (bringing the total limit to $8,600). Keep your tax strategy in mind: Contributions to a traditional IRA may be tax deductible—meaning you’ll pay taxes when you withdraw the money later—whereas Roth IRA contributions are made with after-tax money, meaning they aren’t tax deductible but allow for tax-free growth and qualified withdrawals.
While IRA contributions can technically be made up until Tax Day, it’s usually easier to plan and track contributions when they’re made during the calendar year. Even if you can’t max out an IRA, any contribution you make will help build your financial well-being. - Consider a Roth Conversion: If you’ve been putting all or most of your retirement savings into a tax-deferred traditional IRA, 401(k), or 403(b), converting all or some of those funds into a Roth IRA could lower your future tax bills.
While you’ll have to pay income tax on the taxable portion of the conversion, the converted funds will grow tax-free moving forward, and qualified withdrawals are tax-free as well. Roth conversions may make sense if you anticipate being in a higher tax bracket in the future and the conversion won’t adversely impact Medicare premiums or other income-based benefits you may be receiving.
“Filling your tax bracket” is a tax-efficient conversion strategy where you convert just enough eligible pre-tax money to stay below the top income threshold of your current tax bracket. What’s more, your Roth IRA isn’t subject to required minimum distributions (RMDs) during your lifetime like tax-deferred retirement accounts. - Take Your RMD: If you’re already taking RMDs, your 2026 distribution must be taken by Dec. 31. If you turned, or will still turn, age 73 this year, you must start taking your annual RMDs from your tax-deferred retirement accounts. While you can technically wait to do so until April 1, 2027, you’d then need to take two RMDs during 2027, which could push you into a higher tax bracket. The penalty for not taking your RMD is a steep 25% of the sum you should’ve withdrawn, reduced to 10% if corrected within the applicable correction period; reasonable-error relief may also be available.
- Harvest Investment Losses: Although the stock market has set several record highs this year, you may still have investments (i.e., stocks, bonds, mutual funds, etc.) in a taxable brokerage account that have declined in value since you purchased them. If so, consider selling them. Capital losses offset capital gains first, and up to $3,000 of remaining realized losses can offset other taxable income (losses exceeding $3,000 will be carried forward to the next tax year).
The deadline for tax-loss harvesting is Dec. 31, and you should be aware of the wash-sale rule: Buying substantially identical securities within 30 days before or after a tax-loss sale could disallow the deduction. - Check Up on a Health Savings Account (HSA): Managing medical bills is becoming a bigger issue for more Americans. If you’re eligible, a tax-smart way of setting aside money for qualified medical expenses while lowering your taxable income is to contribute to an HSA.
For 2026, the contribution limit, including any employer contributions, is $4,400 for individual coverage or $8,750 for family coverage; an additional $1,000 catch-up contribution is allowed if you’re age 55 or older. HSAs offer a triple federal income tax advantage—tax-free contributions, tax-free growth, and tax-free disbursements for qualified healthcare expenses. HSA contributions can be made up until Tax Day, but it’s often easier to plan contributions during the calendar year.
Lasting financial well-being comes from consistent, everyday habits. If you need help taking the stress, strain, and uncertainty out of managing your money, consider speaking with a CPA—a certified public accountant. A CPA can guide you toward financial fulfillment with a clear, tax-efficient financial plan. And, when tax time rolls around in a few months, your CPA can help prepare and file your tax return to ensure all eligible credits and deductions available are maximized.
The Illinois CPA Society’s free “Find a CPA” directory can help you find the trusted, strategic advisor that’s right for you. Find your CPA at www.icpas.org/findacpa.
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