Year-End Money Moves to Strengthen Your Finances in 2026

Core Insights - The article emphasizes the importance of making strategic financial moves before the end of the year to enhance financial stability heading into 2026 [1][2] Group 1: Retirement Contributions - Increasing contributions to workplace retirement plans, such as 401(k)s or 403(b)s, can significantly reduce tax liabilities, with a contribution limit of $23,500 for 2025 [3][7] - For individual retirement accounts (IRAs), the deadline to maximize contributions extends until April 15, 2026 [4] Group 2: Tax Deductions - The "One Big, Beautiful Bill" Act (OBBA) introduces new tax provisions that may provide additional savings for eligible individuals, particularly seniors [8][9] - Seniors aged 65 and older can claim an additional $6,000 deduction on top of the standard deduction, which is $15,750 for single filers in 2025, allowing for a total deduction of up to $21,750, subject to income limits [10][11] - The SALT (State and Local Tax) deduction cap has been increased, allowing some taxpayers to deduct up to $40,000 from their income, with phase-out limits for higher earners [12][13] Group 3: Flexible Spending Accounts - It is advisable to utilize funds in flexible spending accounts (FSAs) before the end of the plan year, as these accounts operate on a "use-it-or-lose-it" basis [14][15]