End the Year on Purpose: Alaskans’ December Financial Checklist

Self-employed? You have options too. Alaskans who fish, consult, or earn 1099 income may consider a Simplified Employee Pension IRA or Solo 401(k) for making similar contributions. These often allow higher contributions than a Traditional IRA or Roth IRA, which cap out at $7,000 for those under 50, and $8,000 for ages 50 and above.

If hitting the maximum isn’t feasible this year, don’t worry. Do what you can to invest in “future you” because small increases have the potential to grow into big rewards down the line.

Make Tax-Saving Tweaks

Little year-end moves can make a big difference. For instance, consider tax-loss harvesting. Are any of your non-retirement investment accounts down this year? Selling positions with losses can offset gains and may reduce your taxes.

Consider Roth conversions. A Roth conversion requires moving money from a Traditional IRA into a Roth IRA, resulting in paying taxes now, but positioning the money to grow tax-free moving forward. You’ll owe income tax on the amount you convert. Because Traditional IRA dollars have never been taxed, converting them adds to your taxable income for the year. You can’t touch converted funds for five years without penalty. Roth IRAs offer flexibility later, but converted dollars have a waiting period before they can be withdrawn.

High earners may face limits on future Roth contributions. A conversion isn’t capped at a specific amount, but contributing to a Roth in future years may be limited by your income level. And if you’re 73 or older, take your Required Minimum Distribution first. Required Minimum Distributions must be taken before doing any conversion in that same year.

Bottom line on Roth conversion: ask your accountant or financial professional if a conversion makes sense this year based on your bracket and how much cash you’ve got on hand.

If you run a business or side hustle with big purchases on the near horizon, make certain expenses before year-end with the goal of lowering taxable income.

Lean into your charitable side. Take advantage of match drives that many non-profits sponsor this time of year. Whether you give cash, appreciated securities, or use a Donor-Advised Fund, you can support your favorite Alaska nonprofit organization while potentially reducing taxes.

And another tax-saving tweak: take your Required Minimum Distributions if you’re 73 or older to avoid penalties. Arrange to withdraw funds before the holidays begin.

Revisit Your Goals and Purpose: Does Your Money Reflect Your Priorities?

Money can open doors and provide freedom and flexibility. Our most precious resource, however, is time. Our decisions tend to become most stressful or consuming when they’re out of alignment with our core values. So before the holiday season gets into full swing, carve out a few minutes and grab a sticky note. Write your top three priorities for 2026 and place that note somewhere you’ll see it every day: a mirror, your wallet, or the fridge. 

Ask yourself:

• What matters most right now? Where do I want my time and energy to go in 2026?
• What financial habit would result in the biggest relief if I started right now?
• What support do I want to give myself, spouse, or kids moving forward?

Rather than allowing year-end urgency, comparison, or FOMO (fear of missing out) drive your financial decisions, let these answers be your guide.

It’s time to review your retirement contributions, make some final tweaks to your taxable income, and reconnect with what matters to you most. Take these small steps for increased clarity, more confidence, and a foundation that’s aligned with your values in 2026!

Claire Pywell is a certified financial planner in Anchorage with LPL Financial, serving clients nationwide. This material is for general information only and not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for specific individualized tax or legal advice. LPL Financial and Highline advisors do not offer tax or legal advice.