Retirees have until the end of 2026 to execute three tax strategies before those moves expire for the tax year.
Roth conversions allow you to move money from a traditional retirement account to a Roth IRA, where it grows tax-free. The converted amount counts as taxable income in 2026, but withdrawals in retirement face no tax. This strategy works best if you expect to be in a higher tax bracket later, such as when you begin taking required minimum distributions (RMDs) at age 73 or 75, depending on your birth year.
Tax-loss harvesting lets you sell underperforming investments to offset capital gains from winners. You can deduct capital losses up to $3,000 for joint filers or $1,500 if filing separately. After selling at a loss, you can purchase similar investments to maintain your market position. This strategy does not apply to IRAs or 401(k)s, which are not taxable accounts.
Charitable giving offers tax deductions if you donate to IRS-qualified 501(c)3 organizations. Retirees age 70 1/2 or older can make qualified charitable distributions (QCDs) up to $111,000 directly from an IRA in 2026 to count toward required minimum distributions. You can also donate appreciated long-term securities and claim a deduction for the full stock value without triggering capital gains tax. A donor-advised fund (DAF) works like a charitable checking account where you transfer assets, claim an upfront deduction, and the money continues to grow.
You must itemize deductions to claim these tax benefits. The standard deduction is $32,200 in 2026. Working with a financial planner can help you evaluate your full financial picture and create a multiyear tax plan.