{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"Year-End Tax Moves For Pre-Retirees To Consider in 2026, #327","description":"For those actively planning for a secure retirement, smart tax planning is essential\u2014especially as 2026 comes to a close. Tax laws and contribution limits keep evolving, and timely adjustments can help you keep more of your hard-earned money. On the show this week, I share seven critical tax strategies that can boost your retirement savings while minimizing your tax liability. Here\u2019s a deeper look at each move and how to integrate it into your financial plan.   You will want to hear this episode if you are interested in... [01:41] Maxing out pre-tax retirement plans [04:32] Making after-tax contributions to retirement plans [06:05] In-plan Roth conversion and in-service distribution [09:54] Bunching charitable contributions using a donor-advised fund [10:40] Contributing to 529 plans for state tax deductions [12:24] Setting up a flexible spending account [13:16] Maximizing health savings account contributions [14:50] Year-end deadlines for tax strategies    1. Max Out Pre-Tax Retirement Contributions   One of the most effective ways to reduce your taxable income is to contribute the maximum allowable amount to pre-tax retirement accounts like 401(k), 457, 403(b), or SIMPLE IRA plans. Contribution limits are different based on age and plan type\u2014for example, individuals over 50 can contribute up to $32,500 to certain plans in 2026, while those under 50 are capped at $24,500. If you\u2019re between 60 and 63, look for special catch-up provisions that allow even higher contributions, up to $35,750 in some cases. Keep in mind that if your income exceeds $150,000 in 2025, portions of your catch-up contributions may have to be made as Roth contributions, meaning they won\u2019t reduce your taxable income but instead provide tax-free growth.   2. Consider After-Tax Contributions for Even Greater Savings   Many employer-sponsored plans now allow for after-tax contributions beyond the standard limits. The combined contribution ceiling (including employer matches and profit sharing) can reach as high as $80,000 for those over 50. These after-tax contributions aren\u2019t deductible in the year you make them, but they set the stage for powerful strategies like the \u201cmega backdoor Roth IRA,\u201d which can let you move larger sums into a Roth account for tax-free compounding growth.   3. Use Roth Conversions\u2014Both In-Plan and Beyond   If your plan allows it, consider converting after-tax contributions to Roth dollars through an in-plan Roth conversion. This lets future growth happen in the Roth portion, making withdrawals tax-free later. Under certain conditions (like reaching age 59\u00bd), you might also have the option to roll out your after-tax funds for a more favorable tax outcome 08:11. Doing the math on current and future tax brackets can help determine if a broader Roth conversion is advantageous\u2014particularly in a year where your income is temporarily lower.   4. Leverage Donor-Advised Funds for Charitable Giving   If you make regular charitable contributions yet rarely itemize deductions, a donor-advised fund can be a game changer. By \u201cbunching\u201d multiple years of giving into a single tax year through one of these funds, you may cross the threshold to itemize and get a larger tax deduction. You retain the flexibility to distribute to charities at your own pace in subsequent years.   5. Tap the Power of 529 Savings Plans for Education Expenses   For those with college-bound children, contributions to a 529 plan can lead to valuable state tax deductions or credits. While some states limit deductions to their own plans, nine states allow contributions to any 529 plan to qualify. For example, in Connecticut, individuals can deduct up to $5,000 and couples up to $10,000 from their state income taxes when contributing. This can add up to hundreds of dollars in annual savings, especially when those funds were already earmarked for tuition.   6. Take Advantage of Flexible Spending Accounts (FSAs)   If you\u2019re not enrolled in a high-deductible health plan but still incur significant out-of-pocket health costs, check if your employer offers a Flexible Spending Account. With a $3,400 per-person limit, couples can shield up to $6,800 of medical expenses from taxes each year. Be mindful of the \u201cuse-or-lose\u201d rule\u2014funds must be spent within a short time frame or risk forfeiture.   7. Max Out Health Savings Accounts (HSAs) with High-Deductible Plans   For those on high-deductible health plans, HSAs offer triple tax advantages: contributions are tax-deductible, growth is tax-free, and qualified withdrawals are untaxed. Unused balances roll over indefinitely and can eventually be used for non-medical expenses in retirement with standard tax treatment, effectively functioning as another retirement account.   Get a Head Start for Year-End Deadlines   Many of these strategies require action before the end of the calendar year. By incorporating the appropriate tax moves, you can take control of your retirement planning and optimize your financial well-being for years to come.   Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE    Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com\/contact Subscribe to Retire With Ryan   ","author_name":"Retire With Ryan","author_url":"http:\/\/retirewithryan.libsyn.com\/website","html":"