Year-End Money Moves to Strengthen Your Finances in 2026

New year, new you. To start 2026 off on the right foot financially, you may have to put some legwork in right now.

That might mean finding your 401(k) login and changing your retirement contributions, reading up on new changes to 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 additional cash, consider boosting your workplace retirement plan contributions or even maxing your account out.

The contribution deadline for workplace retirement plans, like 401(k)s or 403(b)s, is Dec. 31, so you still have a few weeks (and paychecks) to contribute more. For 2025, individuals can stash away up to $23,500.

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

2. Take Advantage Of Temporary Deductions, If You’re Eligible

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

Some provisions in the law take effect retroactively and cover all of 2025. Those who are elderly or who itemize their deductions may be impacted by some of the new changes.

The Senior Tax Deduction

If you’re age 65 or older, you may be eligible for an expanded standard deduction.

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

In 2025, the standard deduction is $15,750 for single-filers, so someone who’s eligible for the senior tax deduction could subtract up to $21,750 from their income. However, not everyone will be eligible. The deduction phases out for taxpayers with an annual gross income (AGI) greater than $75,000.

“A lot of people had heard that their Social Security is now tax-free and that was incorrect,” said Sean Williams, a certified financial planner and founder of Cadence Wealth Partners. “They [seniors] don’t have to do anything to claim it…. The only big thing is the phase-out limit. So if people are married filing jointly and they have [an] AGI above $250,000, then they’ll no longer get that credit.”

The SALT Cap

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 greater amount of state and local taxes, up to $40,000. The deduction starts phasing out for single-filers or those filing jointly making $500,000 or more.

Yet Williams notes that since the standard deduction has also increased because of the OBBA, many taxpayers might stick to the standard deduction rather than itemize.

“Because the standard deduction is so high now, they [taxpayers] are just going to be taking the standard deduction. So that [increased] SALT [cap] isn’t going to be as big a deal,” said Williams.

3. Spend Down Your Flexible Spending Account

If you have extra funds in a flexible spending account (FSA), it might be a good time to stock up on sunscreen, ibuprofen, and acne cleansers.

FSAs are a type of use-it-or-lose-it account where contributions are made pre-tax, and money can be used for medical expenses—such as co-pays and prescriptions—as well as miscellaneous everyday items, like menstrual products and heating pads.

Typically, the deadline for using the money 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 money to the next year—so you’ll want to check on the specific details of your account.