End-of-year money moves to boost your finances in 2026

New year, new you. To start 2026 off financially, you may need to do some work now.

That might mean finding your 401(k) login, changing your retirement contributions, reading up on new changes in federal tax law, and taking a look at some of your accounts for the first time in a year.

Here are four tips that will help you enter 2026 in a stronger financial position.

1. Contribute more to your workplace retirement plan

If you’re approaching the end of the year with some extra cash, consider increasing your contributions to your workplace retirement plan or even maxing out your account.

The deadline to contribute to workplace retirement plans, such as a 401(k) or 403(b), is December 31, so you still have a few weeks (and paychecks) to contribute more. For 2025, individuals can store up to $23,500.

For individual retirement accounts (IRAs), you’ll have until next year’s tax deadline, April 15, 2026, to max out your contributions for the tax year.

2. Take advantage of temporary discounts, if you qualify

Earlier this year, President Trump signed the “Big, Beautiful Bill” (OBBA), a massive federal tax bill, into law.

Some provisions of the law go into effect retroactively and cover the entire year 2025. Seniors or those itemizing their deductions may be affected by some of the new changes.

Senior tax deduction

If you’re 65 or older, you may qualify for an expanded standard deduction.

Between 2025 and 2028, seniors can claim an additional deduction of $6,000 per person on top of the standard deduction, a flat amount that reduces your taxable income.

In 2025, the standard deduction is $15,750 for single filers, so someone who qualifies for the large tax deduction can subtract up to $21,750 from their income. However, not everyone will qualify. The deduction is phased out for taxpayers whose annual gross income (AGI) is greater than $75,000.

“A lot of people have heard that their Social Security is now tax-free, and that’s not true,” said Shawn Williams, certified financial planner and founder of Cadence Wealth Partners. “they [seniors] You don’t have to do anything to claim it….the only big thing is the phase-out limit. So if people are married they file jointly and they have two children [an] AGI above $250,000, they will no longer get this credit.”

Salt hat

Due to the Tax Cuts and Jobs Act of 2017, a $10,000 cap was placed on the amount of state and local taxes that individuals could deduct from their income when itemizing their federal taxes.

However, between 2025 and 2030, some taxpayers will be able to deduct a larger amount in state and local taxes, up to $40,000. The deduction begins to phase out for individual filers or those jointly filing $500,000 or more.

However, Williams points out that since the standard deduction has also increased due to the OBBA, many taxpayers may stick with the standard deduction instead of itemizing.

“Since the standard deduction is so high now, they understand [taxpayers] They will only take the standard deduction. That’s why [increased] salt [cap] “It wouldn’t be a big deal,” Williams said.

3. Spend your Flexible Spending Account

If you have extra money in your Flexible Spending Account (FSA), now might be a good time to stock up on sunscreen, ibuprofen, and acne cleansers.

Financial services accounts are a type of use-or-lose account where contributions are made before tax, and the funds can be used for medical expenses — such as co-pays and prescriptions — as well as miscellaneous everyday items, such as menstrual products and heating pads.

Typically, the deadline to use the funds in these accounts is the end of the plan year, but some employers may offer a grace period of up to two and a half months or the option to roll over some of the funds to the following year – so you’ll need to check the specific details of your account.