We get it. Time commitment and inconvenience can make managing your tax situation overwhelming. We're here to help with four, 10-minute tax management steps you can take to put you in a better financial situation for the 2026 tax year and beyond.
1. Maximize retirement plan contributions.
If you're participating in a workplace retirement plan, consider increasing your contributions if your budget allows. For 2026, participants can contribute up to $24,500 to eligible 401(k) and 403(b) plans. Individuals age 50 or older can make an additional $8,000 catch-up contribution. Depending on plan rules, participants ages 60 to 63 may be eligible for an enhanced catch-up contribution of up to $11,250 while actively employed.
2. Maximize health savings account contributions.
If you're enrolled in a qualifying high-deductible health plan (HDHP), contributing to a health savings account (HSA) may offer valuable tax advantages. For 2026, eligible individuals can contribute up to $4,400 for self-only coverage or $8,750 for family coverage. Individuals age 55 or older may contribute an additional $1,000 catch-up amount.
Eligible after-tax contributions may be deductible on your federal income tax return. In addition, contributions, potential investment earnings, and qualified withdrawals for medical expenses generally receive favorable federal tax1 treatment. After age 65, HSA assets can also be used for nonqualified medical expenses2 without penalty, although ordinary income taxes may apply.
3. Get a better handle on your equity compensation.
If equity compensation is part of your benefits package, take time to review upcoming vesting events, grant expirations, and potential tax implications. Changes in compensation, stock price performance, or grant timing can affect both your tax picture and long-term financial strategy.
If available, consider working with your Fidelity Executive Services team to review your equity compensation and discuss how it may fit into your broader financial goals.
4. Consider a donor-advised fund.
A donor-advised fund (DAF) can help simplify charitable giving while potentially providing tax benefits. By contributing cash, securities, or other eligible assets to a DAF sponsored by a public charity, such as Fidelity Charitable®, you may generally be eligible for an immediate tax deduction.
Assets in the account can remain invested and have the potential to grow tax-free, while you recommend grants to qualified charitable organizations over time. For some donors, contributing appreciated securities instead of cash may be a tax-efficient way to support charitable goals.
Taking a few proactive steps throughout the year may help improve your tax situation while keeping your broader financial goals on track. After reviewing these opportunities, consider revisiting your financial plan to identify additional actions that may help strengthen your overall financial picture.