For pilots, the pre-flight checklist is non-negotiable. It’s how they double-check every detail before takeoff—together. “Landing gear?” Check. “Flaps and slats?” Check. It’s not glamorous, but it’s what keeps everyone safe from takeoff to landing.
When it comes to your money, the same approach applies.
As we wrap up 2025 and look ahead to a new year, this is your chance to review what matters most. It’s easy to get caught up in headlines or market noise. But real progress often comes from taking care of the basics.
Here’s your financial pre-flight checklist—updated for today’s tax laws and planning environment:
1. RMDs, QCDs, and the New Charitable Rules
If you’re 73 or older (or inherited an IRA), make sure your Required Minimum Distribution (RMD) is taken by December 31.
And if you give to charity? You may be able to use a Qualified Charitable Distribution (QCD) from your IRA to lower your taxable income—without needing to itemize.
New in 2025: Even non-itemizers can deduct up to $2,000 in charitable donations, and QCDs remain a smart tool for reducing taxes. Just note: starting in 2026, itemizers will see slightly reduced deductibility for charitable gifts.
Action step: Don’t just take your RMD—let’s talk about how to use it wisely.
2. Did Anything in Your Life Change This Year?
Births, deaths, a new job, marriage, divorce, a home sale, caregiving for a parent—these all have ripple effects on your financial life.
The best plans are flexible. But we need to know what’s new to help adjust.
Action step: Schedule time with us if anything in your life shifted in 2025. We’ll help you update your plan.
3. Are You Set Up for 2026 and Beyond?
The One Big Beautiful Bill made many tax provisions permanent—giving us more predictability for planning:
- Standard deduction: $15,750 (individual), $31,500 (joint)
- Tax rates: Locked in and indexed for inflation
- New SALT deduction cap: Certain filers may benefit from the increased cap of up to $40,000.
Action step: With this added certainty, now is a good time to look at Roth conversions, tax-loss harvesting, or income timing strategies. Everyone’s situation is different, so be sure to consult with a qualified tax professional before making any changes.
4. How’s Your Cash?
Heading into 2026, do you have enough set aside for the next 12–24 months?
We typically recommend keeping about 2 years’ worth of planned withdrawals in cash or cash-like accounts. It helps you ride out market dips without having to sell investments at the wrong time.
Action step: Revisit your spending plans. If you’ll need cash soon, let’s talk about replenishing it in a tax-efficient way.
5. Have You Rebalanced or Harvested Losses?
Markets moved in 2025. Did your portfolio drift from its target?
Tax-loss harvesting might still be on the table—and gain harvesting could make sense too if your income is low this year.
Action step: Thinking about a Roth conversion? Market dips or lower income years can make it more attractive. And for business owners, the 20% Qualified Business Income deduction is now permanent—so let’s make sure you’re in the right income zone to benefit.
6. Are Your Accounts, Contributions, and Coverage on Track?
Here are a few quick reminders:
- 401(k) and IRA contributions: Are you maxing out—or at least getting the match?
- Roth 401(k) option: Does your plan offer one? Might be worth exploring, especially if tax rates rise later.
- HSA and FSA funds: Did you use what you planned to? Need to adjust for 2026?
- Beneficiaries: Take 3 minutes to check. You’ll thank yourself later.
New for families in 2026: You’ll see the launch of Trump Accounts (a new type of tax-deferred savings for minors) and expanded 529 plan uses, including for licenses and certifications.
7. Is Your Estate Plan Still Relevant?
The estate tax exemption jumps to $15 million per person in 2026—but laws can change again. Whether you’re gifting to family or a favorite cause, it’s smart to think ahead.
Action step: Review your will, powers of attorney, and any trusts. Need help deciding what to gift—or how? We’re happy to walk through it with you.
8. Thinking About Retirement—or Already There?
If you’re over 65, there’s now an extra $6,000 standard deduction through 2028. For certain taxpayers, this could mean lower taxable income, which may open up opportunities for partial Roth Conversions or realizing capital gains at lower tax brackets.
Action step: Let’s look at how to time your income, distributions, and benefits in a way that works best for your situation.
Final Approach
Some of these items must be completed before December 31, so don’t wait. Taking time now could make a meaningful difference in the years ahead.
If you’re not sure where to begin—or want help walking through your checklist—we’re here. Think of us as your co-pilot.
Let’s make sure you’re cleared for takeoff in 2026.
This blog is for informational purposes only and should not be considered tax or legal advice. Please consult your tax advisor for personalized guidance.
About the Author: Jeff Bernier
