As we get ready to turn the page into a new year, now is the perfect time to take a fresh look at your finances. December and early January offer powerful opportunities to prepare for tax season, fine-tune your retirement contributions, and set yourself up for financial success in 2026.
Here are some smart and timely steps to consider as you begin the year with clarity and confidence:
1. Review Realized Capital Gains From 2025
The markets were strong again in 2025. That is great news for your portfolio, but potentially surprising news for your tax bill.
If you realized capital gains this year from selling appreciated stocks or investments, you may owe additional taxes. To avoid a penalty for underpayment, review your 2025 realized gains now with your tax advisor to determine whether you should make an estimated tax payment before the January 15th deadline.
A quick check today can save you from an unexpected tax bill in April.
2. You Still Have Time to Fund Your IRA for 2025
If you haven’t maxed out your Traditional IRA, Roth IRA, or SEP IRA for the 2025 tax year, you still have time. The deadline to make 2025 contributions is April 15, 2026.
You can also take this opportunity to review next year’s new contribution limits for 2026 (see chart below), so you know exactly how much room you have to save. Also, this is a great time to plan ahead and automate contributions on a monthly basis for the coming year.
Type of Account | 2025 Limit | 2026 Limit |
IRA (Traditional + Roth) | $7,000 | $7,500 |
IRA Catch-up (Age 50+) | $1,000 | $1,100 |
401(k), 403(b), 457, TSP (Employee Elective Deferral) | $23,500 | $24,500 |
Total 401(k), 403(b), 457, TSP (Employee + Employer) | $70,000 | $72,000 |
Catch-up for 401(k), 403(b), 457(b), TSP (Age 50+) | $7,500 | $8,000 |
Special catch-up for ages 60-63 | $11,250 (includes the $7500 regular catch-up) | $11,250 (includes the $8000 regular catch-up) |
SEP IRA | $70,000 | $72,000 |
3. Increase Your Employer-Sponsored Retirement Contributions
If you received a raise this year (or expect one in early 2026) consider directing that additional income straight into your 401(k), 403(b), TSP, or other employer plan rather than absorbing it into your everyday spending.
This allows you to increase your retirement savings without changing your take-home pay. It’s one of the simplest ways to keep your financial goals on track while taking full advantage of updated retirement plan limits.
4. Attention High-Income Earners: Catch-Up Contributions Have Changed
Beginning this year, those over age 50 and earning more than $145,000 per year are required to make their catch-up contributions into Roth accounts rather than Traditional (pre-tax) accounts.
If you fall into this category, you may notice a difference in your take-home pay starting in January as the changes are made automatically.
Final Thought
A proactive start to the year can make all the difference. Whether you’re preparing for tax season, refining your retirement strategy, or adjusting to new contribution rules, thoughtful planning now will set the tone for a confident and organized 2026.
If you’d like help reviewing your investments, tax considerations, or retirement contribution strategy, the Kramer Wealth Managers team is here to support you every step of the way.
Ready to start the year strong? Contact us today at www.kramerwealth.com/contact/
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