Before rolling into 2026, it’s smart to make sure your money isn’t quietly tripping you up. A few financial checkups can reveal what’s working and what needs tweaking. Here are six practical things to review before the new year kicks off.
6. Unlock a Secret 65+ Tax Deduction
Starting with the 2025 tax year, individuals 65 and older can claim a deduction of up to $6,000, and married couples can claim up to $12,000 if both spouses are 65 or older. However, it’s not for everyone. The deduction can phase out depending on your modified adjusted gross income (MAGI). This is a limited-time opportunity, only available through the 2028 tax year.
TrendingNow
5. Supercharge Your 401(k) with a New Catch-Up Contribution
The SECURE 2.0 Act introduced a “supersized” catch-up contribution for those aged 60 to 63. For 2025, this group can contribute an additional $11,250 to their 401(k) or similar workplace retirement plan, on top of the standard $23,500 contribution limit. If you fall into this age bracket, check with your plan administrator to ensure you’re taking full advantage of this savings opportunity.
4. Give Your Adult Kids a Financial Lifeline (the Smart Way)
Before year-end, have an honest conversation with your adult children about finances. Instead of just handing over cash, consider more structured and empowering ways to help. This could include funding a Roth IRA for them, contributing to a 529 plan for grandchildren, or creating a formal loan agreement. By setting clear boundaries, you can support your children without derailing your own financial plans.
3. Review Your Beneficiaries
When was the last time you reviewed the beneficiary designations on your retirement accounts, life insurance policies, and annuities? These designations are legally binding and override your will. Many people forget to update them after major life events like marriage, divorce, or the birth of a child. The consequences can be devastating, with your assets unintentionally going to an ex-spouse or a deceased relative, leading to legal battles and family strife.
2. Conduct a “Pro Forma” Tax Review
Don’t wait until April 15th to find out you owe the IRS a large sum. One of the smartest moves you can make before year-end is to ask your accountant for a “pro forma” tax return. This is a projection of your 2025 taxes based on your income and deductions to date. This preview allows you to see where you stand and make strategic adjustments before the December 31st deadline.
1. Rebalance Your Portfolio and Harvest Your Losses
Rebalancing or selling some of your winners and buying more of your underperforming assets brings your portfolio back in line with your long-term goals. While you rebalance, strategically sell investments that are down in value. This is called tax-loss harvesting. You can use those capital losses to offset capital gains, and if your losses exceed gains, you can deduct up to $3,000 of them against your ordinary income.
