From The Motley Fool · Motley Fool Staff · · 1m 20s
Act Now to Lower Your Taxes for 2026
Max out tax-advantaged accounts and use tax-loss harvesting to lower 2026 taxes.
In brief
Max out tax-advantaged accounts and use tax-loss harvesting to lower 2026 taxes. Optimize 2026 taxes by maxing retirement contributions, tax-loss harvesting, and charitable giving with appreciated stock. Originally reported by The Motley Fool.
Max out tax-advantaged retirement contributions
Check 401(k) and 403(b) limits of $24,500 with $8,000 catchup for those 50+.
Tax-loss harvesting opportunities
Sell investments below cost to offset capital gains, with wash sale rule exceptions.
Asset location for tax efficiency
Move income-generating assets to traditional IRAs to defer taxes.
Charitable giving with appreciated stock
Donate stocks to avoid capital gains tax and get full fair market value deduction.
QCD for tax savings
Direct up to $111,000 RMDs to charities without counting as taxable income.
Withholding and estimated payments
Ensure withholding covers 90% of tax liability to avoid penalties by April.
Roth conversions
Convert traditional retirement accounts to Roth to pay tax now and grow tax-free.
Tax bracket estimation
Estimate 2026 tax bracket to guide retirement contributions and conversions.
State tax differences
State rules may affect QCDs and 529 transfers, like New Jersey and California.
Deadline for tax actions
Complete tax strategies by December 31 to avoid April penalties.
The one thing
Optimize 2026 taxes by maxing retirement contributions, tax-loss harvesting, and charitable giving with appreciated stock.
