Five Year-End Reminders to Help You Start the New Year Prepared

As the year winds down, it is an opportunity to check on the arrangements you usually don’t have to think about. A health plan you’ve relied on may be changing, a retirement withdrawal may still be outstanding, or someone named in your financial documents may no longer be the right person to help. These details are easy to overlook when everything seems to be running smoothly.

Setting aside time to review them before year-end gives you a chance to ask questions and make adjustments before deadlines limit your options. It can also spare you or your family an unexpected bill or a scramble to find important information when it’s needed.

Review Medicare Coverage Before December 7

If you have a Medicare Advantage or prescription drug plan, review whether it will still meet your needs next year. Costs, covered medications, provider networks, and participating pharmacies can change each year.

Medicare’s annual open enrollment runs from October 15 through December 7, with changes generally taking effect January 1. Review your plan’s Annual Notice of Change and compare the coming year’s coverage with your current healthcare needs. A plan with a lower monthly premium could still cost more overall if your medications cost more or your preferred providers are outside the plan’s network. You can explore your options through Medicare’s open enrollment resources.

If you are considering moving from Medicare Advantage to Original Medicare, investigate your ability to obtain supplemental Medigap coverage before making the change. Fall open enrollment does not automatically guarantee acceptance into a Medigap policy; separate protections and state rules may apply.

Confirm Your Required Retirement Withdrawals

If you are subject to required minimum distributions, or RMDs, confirm how much you must withdraw for 2026, how much you have already taken, and whether anything remains to be distributed. Most annual RMDs must be completed by December 31.

A missed RMD can trigger a penalty of 25% of the amount you failed to withdraw. For example, a $10,000 shortfall could result in a $2,500 penalty, in addition to any income tax due on the eventual withdrawal. A reduced penalty or waiver may be available if you meet the applicable correction requirements, so contact your tax professional promptly if you discover a missed RMD.

When you first meet the requirements for mandatory distributions, you can take your first RMD that year or delay it until April 1 of the following year. Delaying puts your first two RMDs in the same tax year, since the second is still due by December 31 of that following year. Your advisor and tax professional can compare the options based on your expected income, tax situation, and financial needs.

Review all your retirement accounts, including those held at other institutions, because withdrawal requirements differ by account type. You generally can combine RMDs from your own traditional IRAs and take the total from one or more of those IRAs, but most employer plans have separate withdrawal requirements. Inherited accounts follow different rules and may require annual distributions even when a 10-year withdrawal deadline applies. Your advisor or tax professional can help you reconcile the amounts and identify which rules apply.

Ask your custodian about processing deadlines and submit any remaining withdrawal requests well before the applicable deadline, allowing time to resolve questions or correct an error.

Check Your Tax Payments

Before the year ends, compare what you expect to owe in taxes with what you have already paid through withholding and estimated payments. Even if your income has been steady, this review can help you determine whether you need to adjust withholding or make an additional payment.

If your income changed during the year, ask your tax professional to update your projections. A larger retirement withdrawal, investment gains, a Roth conversion, or the sale of a business or property could increase your tax obligation. Retiring or working less may also change the estimates you made earlier in the year.

Ask your tax professional whether to adjust withholding before year-end or make an estimated payment by the applicable deadline. For most calendar-year taxpayers making quarterly federal estimated payments, the final 2026 installment is due January 15, 2027. Reviewing this now gives you time to address a potential shortfall and ask whether additional payments or withholding adjustments could help avoid an underpayment penalty.

Make Sure Someone Knows Where to Begin

Your financial records may be organized in a way that makes perfect sense to you, but could someone else find what they needed if you were unable to manage things yourself? Leaving a clear roadmap can spare loved ones from searching for documents and contacts while also dealing with an unexpected situation.

Update a short list of where your accounts are held, where essential legal and insurance documents are stored, and how to reach your financial advisor, accountant, and attorney. Tell the appropriate person where that information is kept securely. Knowing the name of your attorney and the location of your estate documents gives someone a better starting point than being told everything is “somewhere in the office.”

Also confirm that the trusted contact on your investment accounts is still appropriate and that their details are current. Your financial institution may contact this person if it cannot reach you or has concerns about possible exploitation. The designation does not give them authority to manage your accounts or make transactions.

If you want someone to have authority to act on your behalf, discuss a financial power of attorney with your attorney. The document can define which responsibilities the person may handle and when their authority begins. For planning around incapacity, ask about a durable power of attorney, which remains effective if you become unable to make decisions yourself. If you already have one, review whether the person named and the authority granted still fit your wishes.

Give Next Year’s Priorities a Place in Your Plan

Before committing to next year’s spending, consider what you want to make possible. A longer trip, helping a family member, or increasing charitable giving may require setting aside money or adjusting how much you withdraw from savings. Discussing those plans now gives you time to understand the costs and decide what fits comfortably.

If your plans involve other people, include them in the conversation before making arrangements. You might discover that a family member would welcome help with an education expense, that relatives are interested in a shared vacation, or that everyone would enjoy supporting a local cause together.

Account for the expenses that are easy to overlook, including transportation, accommodation, and help with responsibilities at home. Once you have a realistic budget, choose a date or agree on the next step so the plans you care about have a place in the coming year.

Start the New Year Knowing Where You Stand

An overlooked withdrawal or an unexpected coverage change can turn into a problem when there is little time left to address it. Reviewing these items now gives you room to ask questions, correct mistakes, and understand your options before a deadline limits them.

You don’t need every detail about next year settled by December. Knowing which obligations are complete, which decisions are still open, and who will help you follow through can make the coming year feel more manageable.