Year-End Actions
Time-sensitive decisions to optimize before December 31st
Roth Conversions
You have $49,950 of room remaining in your 24% bracket. Consider converting before year-end to lock in today's rates.
Recommended Action
Convert $18,400 from Traditional IRA to Roth IRA before Dec 31, 2026.
RMD Satisfaction
Your RMDs do not begin until 2031 (age 73). No distribution is required this year.
QCD Opportunity — Act Before Dec 31
You became eligible for Qualified Charitable Distributions at age 70½ in mid-2026. QCDs reduce your taxable income and count toward future RMD satisfaction.
$96,500 remaining before 2026 QCD limit
- QCDs are excluded from taxable income entirely — unlike a standard charitable deduction, they reduce your MAGI directly, which can also lower IRMAA exposure.
- QCDs must be made directly from your IRA custodian to a qualifying charity — personal checks reimbursed to you do not qualify.
IRMAA Management
Your projected 2026 MAGI is $160,400 — currently in IRMAA Tier 1. You have $53,600 of cushion before the Tier 2 cliff.
2026 IRMAA Tier Thresholds (Single Filer)
- Your 2026 MAGI determines your 2028 Medicare premiums via the two-year lookback. Any income events before Dec 31 — Roth conversions, capital gains, or RMDs — will count toward this year's threshold.
- The Tier 2 cliff at $214,000 adds $111/month ($1,332/year) in Medicare Part B premiums. Staying below it is worth coordinating with other year-end decisions.
Tax-Loss Harvesting
Your brokerage account has an estimated $6,200 in unrealized losses eligible for harvesting. Realizing these losses offsets capital gains and reduces taxable income.
- Harvested losses offset capital gains dollar-for-dollar. Up to $3,000 of excess net losses can be applied against ordinary income annually — the rest carries forward indefinitely.
- Avoid the wash-sale rule: do not repurchase a substantially identical security within 30 days before or after the sale, or the loss is disallowed.
- Losses in tax-advantaged accounts (IRA, Roth) are not harvestable — this strategy applies to your taxable brokerage account only.
All figures are illustrative and for educational purposes only. IRMAA thresholds, tax brackets, and QCD limits are based on 2026 estimates and subject to change. This page does not constitute personalized financial, tax, or legal advice. Consult a qualified advisor before executing any year-end strategy.