As the new year begins, it is a smart time to review your retirement accounts and confirm that everything is aligned before tax season arrives. Whether your goals include managing taxes, maximizing contributions, or updating beneficiaries, the months leading up to April 15 offer an important planning window.
At REAP Financial, we encourage families to stay ahead of deadlines and decisions that can influence long term outcomes. Below is a practical checklist to help you stay organized in 2026.
Contents
1. Take Required Minimum Distributions
If you turned age 73 in 2025, you are required to begin taking Required Minimum Distributions in 2026. These withdrawals apply to most pre tax retirement accounts, including traditional IRAs, SEP IRAs, and many employer plans.
Missing an RMD can result in significant penalties, and every dollar withdrawn is taxable income. RMD calculations are based on the combined value of all applicable retirement accounts, not just a single account. Once RMDs begin, they must be taken annually and generally increase over time.
Planning for these withdrawals in advance can help manage cash flow and reduce unexpected tax exposure, which is often addressed through coordinated retirement planning strategies.
2. Review Roth Conversion Opportunities
Roth conversions remain one of the primary tools retirees use to manage future tax exposure. By moving funds from a traditional IRA or 401(k) into a Roth IRA, future growth may occur tax free and Roth accounts are not subject to RMDs during the original owner’s lifetime.
Because converted amounts are taxable in the year of conversion, many individuals choose to spread conversions across multiple years to stay within a targeted tax range. Market conditions may also affect timing, as converting during periods of lower account values can reduce the immediate tax impact.
All Roth conversions must be completed by December 31 to count for the current tax year, and they are typically evaluated as part of a broader financial planning approach.
3. Fund Your Health Savings Account
For those enrolled in a qualifying high deductible health plan, a Health Savings Account can play a valuable role in retirement planning. HSAs offer a combination of tax deductible contributions, tax deferred growth, and tax free withdrawals for qualified medical expenses.
Contribution limits vary based on coverage type and age. Contributions for 2026 must be made by December 31. Many retirees use HSAs as a long term healthcare reserve, allowing funds to compound and later be used for medical expenses that often increase with age, especially when coordinated within a comprehensive retirement income plan.
4. Update Beneficiary Designations
Beneficiary designations on retirement and brokerage accounts override instructions in a will or trust. Life changes such as marriage, divorce, births, or deaths can quickly make these designations outdated.
Reviewing beneficiaries annually helps ensure assets are distributed according to your current wishes and can prevent administrative delays or unintended tax outcomes for heirs, which is a key part of ongoing relationship management.
5. Review Your Estate Planning Structure
As assets grow, it may be appropriate to revisit your estate planning framework. A revocable living trust may help streamline asset transfers, avoid probate, and provide privacy for your family.
Estate planning should evolve alongside changes in tax law, asset values, and family circumstances. Reviewing documents regularly can help ensure your plan continues to reflect your intentions.
Start the Year with Clear Direction
Tax rules and contribution limits change frequently, making proactive review essential. If you would like a copy of our Personal Budget Worksheet, email retire@reapfinancial.com with “Budget Worksheet” in the subject line. This is the same tool we use with pre retirees to help clarify spending, income, and tax considerations.
Retirement Planning Support in Austin
If you are looking for retirement planning Austin families rely on or want to speak with a financial adviser Austin residents trust about organizing retirement accounts, distributions, and tax strategies, REAP Financial is available to help you explore your options.
To learn more, visit reapfinancial.com or email retire@reapfinancial.com.
Contact REAP Financial
Phone: (512) 249-7300
Email: admin@reapfinancial.com
Our Main Office Address
REAP Financial
9414 Anderson Mill Rd #100
Austin, TX 78729
Chris Heerlein, a Texas native, is the CEO of REAP Financial and founder of REAP Private Client Group (RPCG), specializing in wealth creation, preservation, and growth for affluent individuals, business owners, and executives. RPCG provides financial and investment advice, advanced tax strategies, business succession planning, and excellent client service. Chris is a trusted financial advisor, author of Divorce With Dignity (2019) and Money Won’t Buy Happiness But Time to Find It (2017).
Chris also hosts Wealth Radio on NewsRadio KLBJ, Retire Ready TV on KXAN and YouTube and is a sought-after speaker. Based in Austin, Texas, he lives with his wife, Hannah, and their three children and actively supports charitable causes.
