The Illinois CPA Society is recommending six financial steps residents can take before Dec. 31 to strengthen their finances and potentially lower their 2026 tax bill, according to a press release issued Nov. 2.

The society cited a national study by Edward Jones and Gallup released in June 2026, which it said found that just 16% of U.S. adults feel financially fulfilled, while 83% feel financial stress, strain or uncertainty that affects their mental and physical health.

Six year-end money moves

  • Revisit workplace retirement accounts. Pre-tax contributions to tax-deferred plans such as a 401(k) or 403(b) reduce taxable income. The society said the 2026 contribution limit is $24,500, or $32,500 for those age 50 or older. A super catch-up contribution for those age 60-63 may allow a total of $35,750 if the employer's plan permits. For 2026, employees with more than $150,000 in 2025 Social Security wages from the plan sponsor generally must make catch-up contributions as after-tax Roth contributions. The society recommended contributing at least up to any employer match.
  • Fund your IRA. The 2026 contribution limit for all IRAs is $7,500, plus a $1,100 catch-up for those age 50 or older, bringing the total to $8,600. Traditional IRA contributions may be tax deductible, while Roth IRA contributions are made with after-tax money but allow tax-free growth and qualified withdrawals. IRA contributions can be made up until Tax Day, the society noted, but are easier to track during the calendar year.
  • Consider a Roth conversion. Converting funds from a tax-deferred account to a Roth IRA requires paying income tax on the taxable portion now but allows tax-free growth and qualified withdrawals later. The society said conversions may make sense for those who expect to be in a higher future tax bracket, and noted a Roth IRA is not subject to required minimum distributions during the owner's lifetime.
  • Take your RMD. Those already taking required minimum distributions must take their 2026 distribution by Dec. 31. Those who turn 73 this year must begin taking annual RMDs; waiting until April 1, 2027, would require two RMDs in 2027. The society said the penalty for missing an RMD is 25% of the amount that should have been withdrawn, reduced to 10% if corrected within the applicable period, with reasonable-error relief possibly available.
  • Harvest investment losses. Selling investments that have declined in value in a taxable brokerage account can offset capital gains, with up to $3,000 of remaining losses able to offset other taxable income and amounts beyond that carried forward. The deadline is Dec. 31. The society warned about the wash-sale rule, which can disallow the deduction if substantially identical securities are bought within 30 days before or after the sale.
  • Check up on a health savings account. The 2026 HSA contribution limit, including employer contributions, is $4,400 for individual coverage or $8,750 for family coverage, with an additional $1,000 catch-up for those age 55 or older. The society said HSAs offer a triple federal tax advantage and that contributions can be made up until Tax Day.

Finding help

The society said lasting financial well-being comes from consistent, everyday habits, and recommended speaking with a certified public accountant for a tax-efficient plan. Its free "Find a CPA" directory is available at www.icpas.org/findacpa.

Founded in 1903, the Illinois CPA Society has more than 20,000 members and is one of the largest state CPA societies in the nation, according to the release.