2026 Year-End Tax Strategies

Here are some year-end tax strategy suggestions you can share with your clients to help them reduce their federal income tax liability in 2025. 

It is already October, but it is not too late to share the following year-end tax strategy ideas to reduce their 2025 federal income tax liability. 

• Review tax withholding and estimated payments – they don’t want to be exposed to fines for failing to withhold / pay the appropriate amount of income tax.
• Review and understand the allowable deductions and credits – which may decrease their ultimate income tax liability.
• Make those last-minute charitable gifts – remember to remind them to keep records of their gifts.
• If they know they could be recognizing capital gains, suggest they consider harvesting tax losses to offset the gains.
• Maximize contributions to their employer-sponsored qualified plan – Have them check with their plan administrator on the deadline so they can make adjustments to their contributions.
• Suggest maximizing their deductible traditional IRA contributions (deadline for making 2026 contributions is April 15, 2027).
• If they expect to earn more in future years than in 2026, have them consider converting all or a portion of their traditional IRA to a Roth IRA before year-end.
• For traditional IRA holders who are required to take a minimum distribution (RMD), make sure they don’t forget to take their 2026 RMD before December 31st.
• For traditional IRA owners who have not yet taken their 2026 RMD, have them consider a qualified charitable distribution (up to $111,000 per individual in 2026) to reduce their income tax liability. Remind them to get a receipt from the charitable organization!
• For traditional IRA holders who reach age 73 in 2026, they do not have to take their first RMD until April 1, 2027.
• Note that certain inherited IRA beneficiaries must take an RMD for 2026 before year-end. Annual RMD requirements depend on the beneficiary’s circumstances and the applicable inherited IRA rules.

For questions, please reach out to the Advanced Sales Team.

The companies of National Life Group and their representatives do not offer tax or legal advice. For advice concerning client situations, please have them consult with their appropriate professional advisor.

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