Year-end money moves for 2026
Three dates decide most of them.
Missing an RMD costs the most. The IRS charges 25% of what you didn’t take.
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1. Build your own checklist
Not every move applies to you. Answer four questions and the list below shows only the ones that do, in date order.
2. Your required minimum distribution
If you were born between 1951 and 1959, RMDs start at 73. Each one is due by December 31. The first has a grace period to April 1 of the next year, but waiting puts two RMDs and two tax bills into the same year.
- The TSP pays your RMD for you if you haven’t withdrawn enough yourself. Roth TSP money no longer counts.
- IRAs are different. You can add up the RMDs from all your IRAs and take the total from one of them. You can’t use an IRA withdrawal to cover the TSP’s RMD, or the reverse.
- Missed it? The penalty is 25% of the shortfall. It drops to 10% if you take the money and file Form 5329 within the IRS’s correction window.
More: TSP RMDs and the Roth exemption and the 25% penalty.
3. Giving to charity from an IRA
A qualified charitable distribution sends money straight from your IRA to a charity. It counts toward your IRA RMD and never shows up in your income, which can keep you under the Medicare surcharge line. For 2026 you can give up to $111,000 this way if you are at least 70½ on the day of the gift.
QCDs come only from IRAs, and they don’t cover the TSP’s own RMD. To give from TSP money, first move some of it to a traditional IRA. Only money above your TSP RMD can be moved. Leave time: the gift has to leave the IRA by December 31, and the charity must get it directly, not through you.
Younger than 70½, or no IRA? Giving two years of gifts in one year, or through a donor-advised fund, can let you itemize. See donor-advised funds and bunching and QCDs in detail.
4. A Roth conversion
Moving money from a traditional TSP or IRA to a Roth IRA means paying the tax now so later withdrawals are tax-free. For 2026, the money must move by December 31. Conversions can’t be undone, so check three things first:
- Your bracket. Fill a low bracket; don’t spill into the next one.
- Medicare surcharges. The added income can raise your Medicare premiums two years from now.
- Paying the tax. Pay it from savings, not from the converted money, or the move loses much of its value.
More: the Roth conversion window.
5. Gains, losses and the 0% rate
In a regular brokerage account, long-term gains are taxed at 0% while your taxable income stays under $49,450 single or $98,900 married filing jointly in 2026. If you have room, selling and buying back resets your cost basis tax-free.
Above that line, selling losing investments can offset gains, plus up to $3,000 of other income. Don’t buy the same or a nearly identical investment in the 30 days before or after the sale, or the loss is disallowed. More: the 0% bracket and tax-loss harvesting.
6. Watch your income line
Before any December move, add up your 2026 income. Two lines matter most to retirees:
| Line | Single | Joint |
|---|---|---|
| Senior deduction ($6,000 each, 65+) starts shrinking | $75,000 | $150,000 |
| Medicare surcharge (IRMAA) starts | $109,000 | $218,000 |
Both use modified adjusted gross income. The senior deduction runs 2025 through 2028 and you get it whether or not you itemize. The IRMAA line shown is the one in effect for 2026 premiums; Medicare will use your 2026 return to set your 2028 premiums. More: the senior deduction and IRMAA explained.
7. Health plans for 2027
- Medicare Open Enrollment, Oct 15 to Dec 7. Change a Part D drug plan or a Medicare Advantage plan for 2027.
- FEHB and PSHB Open Season, Nov 9 to Dec 14. OPM says the enrollee share of premiums rises 10.9% on average for FEHB and 8.2% for PSHB. Your own plan may rise more or less.
Doing nothing keeps your current plan, at the new price. More: Open Season decisions for retirees and what changes for FEHB in 2027.
8. Taxes and gifts
- Behind on tax payments? Have tax withheld from a December TSP or IRA withdrawal. The IRS treats withholding as paid evenly through the year, which can wipe out an underpayment penalty. A fourth-quarter estimate is due January 15, 2027.
- Gifts to family. You can give up to $19,000 per person in 2026 without filing a gift tax return.
- Retiring at year end? Your leave payout and final paychecks land in the year they are paid. See the best dates to retire in 2027 and FSAFEDS in your final year.
More: withholding in retirement and estimated taxes.
9. Frequently asked questions
When is my 2026 required minimum distribution due?
By December 31, 2026. The one exception is your first RMD: if you turn 73 in 2026, you can wait until April 1, 2027, but then you take two RMDs in 2027.
Can I make a qualified charitable distribution from the TSP?
No. QCDs come only from IRAs. To give from TSP money, first move it to a traditional IRA, then have the IRA send the gift directly to the charity by December 31.
What is the deadline for a 2026 Roth conversion?
The money must leave the traditional account by December 31, 2026 to count for 2026. Conversions cannot be undone, so run the tax numbers first.
When do the Medicare and FEHB enrollment windows close?
Medicare Open Enrollment runs October 15 to December 7. The FEHB and PSHB Open Season for 2027 runs November 9 to December 14, 2026.
Does my 2026 income affect my Medicare premiums?
Yes, two years later. Medicare uses your 2026 tax return to set your 2028 Part B and Part D income surcharges, called IRMAA.
- IRS, retirement plan and IRA required minimum distribution FAQs
- IRS Notice 2025-67, 2026 limits including the QCD limit
- IRS Rev. Proc. 2025-32, 2026 capital gains thresholds and gift exclusion
- IRS, the enhanced deduction for seniors
- CMS, 2026 Medicare premiums and IRMAA
- OPM, 2027 plan year Open Season highlights
- Medicare.gov, Open Enrollment