2026 Year-End Retirement Checklist: 5 Things to Review Before December 31

The end of the year is the last chance to make several retirement moves that count for 2026. Some have hard December 31 deadlines, and the cost of missing them can be a tax penalty or a bigger bill than necessary. This checklist covers the five items we think matter most for retirees, plus a bonus. It's general education, so confirm the details for your own situation with a qualified tax professional.

1. Required Minimum Distributions (RMDs)

An RMD is the minimum amount you must withdraw each year from most traditional IRAs and employer retirement plans once you reach the required age. The age depends on your birth year under the SECURE 2.0 Act:

• Born 1951 through 1959: age 73.
• Born 1960 or later: age 75.

The deadline. For most years, your RMD must be taken by December 31. In the year you first owe one, you can wait until April 1 of the following year, but then you'd take two RMDs in that second year, which can push you into a higher bracket. Many retirees take the first RMD in the year they reach the required age to avoid doubling up.

The penalty. If you don't withdraw enough, the IRS can charge an excise tax of 25% of the amount you should have taken, reduced to 10% if you correct the shortfall in a timely way. It's one of the larger avoidable penalties in retirement.

Annuities inside IRAs. An annuity funded with traditional IRA money is generally still subject to RMD rules, because the rules follow the account, not the product. The annuity's value is included when your RMD is calculated, and many contracts allow RMD withdrawals without surrender charges, though you should confirm that with your carrier. If you own more than one IRA, you can generally total the RMDs and take the amount from any of them (this doesn't work between an IRA and a 401(k)). Our guide on annuities and RMDs covers the details.

2. Roth Conversions

A Roth conversion moves money from a traditional IRA into a Roth IRA. You pay ordinary income tax on the converted amount in the year you convert, and qualified withdrawals later are generally tax-free. Our Roth conversions overview and our post on Roth conversions with an annuity explain the mechanics.

Why people consider converting in lower-income years. If your income, and therefore your tax bracket, is lower than it will likely be later, converting now means paying tax at a lower rate. Retirement years before RMDs begin, or years after a big drop in income, are often cited as windows.

Why December 31 matters. A conversion counts for the year in which it's completed, and the tax deadline for doing it is December 31. Unlike a regular IRA contribution, you can't do a 2026 conversion after year-end. Also, conversions generally can't be undone (recharacterized), and your RMD for the year has to be taken first, because the RMD itself can't be converted.

What a conversion can affect.

• Federal income tax: the converted amount is added to your taxable income and can push part of it into a higher bracket.
• Social Security taxation: more income can make more of your benefit taxable, up to 85%.
• Medicare premiums: a conversion in 2026 may raise your IRMAA tier in 2028. See our Medicare Open Enrollment guide for how that works.

Paying the tax from money outside the IRA, when possible, generally keeps more of the conversion working in the Roth.

3. Qualified Charitable Distributions (QCDs)

If you give to charity and you're 70½ or older, a QCD may be worth a look. It is a direct transfer from your IRA to an eligible charity. Key points for 2026:

• Eligibility: you must be at least 70½. Note that this is earlier than the RMD age.
• Limit: up to $111,000 per person in 2026. Spouses each have their own limit.
• Direct transfer: the money has to go straight from the IRA to the charity. A check you cash and then donate doesn't qualify. Most QCDs must go to a 501(c)(3) public charity, not to a donor-advised fund or private foundation.
• RMD credit: a QCD can count toward your RMD for the year, and the amount is generally excluded from your taxable income.

A straightforward example. Suppose Maria, age 76, has a 2026 RMD of $24,000 and gives to charity every year. She arranges a direct transfer of $10,000 from her IRA to her church's charitable foundation before December 31. That $10,000 counts toward her RMD, and she takes the remaining $14,000 as a normal distribution. Her taxable income from the IRA is $14,000 instead of $24,000, which may also help with the Social Security and Medicare effects above. (This is a hypothetical, and she should have the charity's written acknowledgment.)

Because a QCD has to be processed by your IRA custodian, ask them early. Year-end requests can take a while.

4. Tax Brackets and Medicare

Retirement withdrawals, capital gains, interest, and part of your Social Security benefit all stack up to form your taxable income. That income determines your bracket for 2026 and, with a two-year delay, your Medicare IRMAA tier for 2028. A few ways to look at it:

• Know where you are. Estimate your 2026 taxable income before year-end, and see how far you are from the next bracket or IRMAA threshold.
• Watch the cliffs. IRMAA tiers work like cliffs, so being a few dollars over a threshold can cost more than the income itself.
• Look at the whole picture. A withdrawal that looks cheap on its own may increase the taxable part of Social Security, phase out credits, and raise Medicare premiums.
• Timing tools. RMDs, Roth conversions, QCDs, and the timing of capital gains and annuity withdrawals can all move income between years.

This is a spot where a tax professional earns their fee. The best time to run the numbers is before December 31, not in April.

5. Review Your Annuities, CDs, and Retirement Income

Year-end is also a good time to take stock of the guaranteed side of your plan:

• ☐ Maturing CDs. Is a CD maturing soon? Compare what's available before it renews automatically. See our CD rollover guide and MYGAs vs. CDs.
• ☐ Existing fixed annuities. Review the interest rate you're earning and whether it's a renewal rate after the initial guarantee.
• ☐ Surrender-period expirations. Note when the surrender charge ends, since that may open up options. See the annuity maturity center and our post on what to do when your annuity matures.
• ☐ Withdrawal provisions. Confirm how much you can take out each year without a penalty and whether you've used this year's amount. See free withdrawals explained.
• ☐ Guaranteed income needs. Compare your guaranteed income (Social Security, pensions, annuities) against your essential expenses. If there's a gap, look at your options.
• ☐ Beneficiary designations. See the bonus item below.

If you're thinking about a new or replacement contract, you can compare current guaranteed rates with our rate tool. Check the carrier's rating, surrender schedule, and withdrawal features, not just the rate. And if you're moving money from another annuity, ask about a 1035 exchange first, since a direct exchange can avoid immediate taxes.

Bonus: Review Your Beneficiaries

Beneficiary designations on your IRAs, annuities, and life insurance policies generally override your will. They also go out of date easily after a marriage, divorce, death, or birth. Check that each account lists the right primary and contingent beneficiaries, and that the names and percentages are current. For IRAs, the rules for what beneficiaries must do after you're gone have become stricter, and many non-spouse beneficiaries must empty an inherited IRA within 10 years. The IRS page on RMDs for IRA beneficiaries has the details, and our guide to annuity beneficiary rules covers annuities.

Sources

• IRS: Retirement plans
• IRS: Required minimum distributions for IRA beneficiaries
• Social Security Administration: Request to lower your IRMAA

This article is for educational purposes only and is not tax, legal, or financial advice. Tax rules, limits, and thresholds change, so confirm the figures that apply to you with the IRS or a qualified tax professional. Examples are hypothetical. Conversions generally cannot be reversed. Withdrawals from tax-deferred accounts may be subject to ordinary income tax and, if taken before age 59½, an additional 10% IRS tax. Surrender charges and market value adjustments may apply to early annuity withdrawals. Guarantees are backed by the claims-paying ability of the issuing insurance carrier.