2026 Year-End Tax Planning for Colorado Families & Business Owners
CPA of Denver · Published November 6, 2026 · Planning for tax year 2026 and 2027 health coverage
November is a good time to put your tax return on paper before the year is over. A bonus, business profit, stock sale or retirement conversion can change more than your income tax bill: it may also change the financial help you receive for health insurance.
For Colorado families and business owners, this year’s review should include retirement contributions, health savings accounts, Marketplace coverage, CollegeInvest 529 savings and the new Trump Accounts. Start with a household income projection, then decide which actions deserve your remaining cash and attention.
1. Check your 401(k) before the last payroll runs
For 2026, the employee 401(k) deferral limit is $24,500. If your plan permits catch-up contributions, the total is generally $32,500 at age 50 or older, or $35,750 if you turn 60, 61, 62 or 63 during 2026. The higher catch-up replaces the ordinary catch-up. These are employee deferral limits; employer contributions follow separate rules. See the IRS 2026 retirement limits.
Review your year-to-date contributions and remaining paychecks with payroll now. Increasing the election in late December may be too late for processing. Also check how your employer calculates its match before front-loading contributions.
New Roth catch-up rule: For 2026, affected employees with more than $150,000 of 2025 FICA wages from the employer sponsoring the plan generally must make catch-up contributions as Roth contributions. Those dollars do not produce the current deduction that pretax contributions do. Confirm your treatment with the plan administrator. IRS guidance on the Roth catch-up threshold.
2. Reserve room for an IRA contribution
The combined 2026 contribution limit for traditional and Roth IRAs is $7,500, or $8,600 at age 50 or older, subject to eligible compensation. A traditional IRA contribution is not automatically deductible: income and workplace retirement coverage matter. Roth IRA eligibility also depends on income. IRS IRA contribution rules.
Most taxpayers can make a 2026 IRA contribution through April 15, 2027; a filing extension does not extend the regular contribution deadline. Identify it as a 2026 contribution. A Roth conversion has different timing and tax effects, so discuss it before year end rather than treating it as an IRA contribution. IRS Publication 590-A.
3. Review your HSA and workplace health accounts
For eligible individuals, the 2026 HSA limit is $4,400 for self-only coverage or $8,750 for family coverage, including employer contributions. An eligible person age 55 or older may contribute another $1,000 to their own HSA. Eligibility, coverage months, Medicare enrollment and other coverage can reduce or eliminate the permitted amount.
HSA balances carry forward. Workplace health FSAs have different spending, carryover and grace-period rules, so ask your benefits administrator what happens to any unused balance. Most eligible taxpayers have until April 15, 2027, to make 2026 HSA contributions. IRS HSA and health account guidance.
A change worth checking: Beginning in 2026, Bronze and Catastrophic plans available through an ACA Exchange receive expanded HSA-compatible treatment. Other HSA eligibility requirements still apply, including restrictions on Medicare and disqualifying coverage. Compare premiums, deductibles, providers and prescriptions alongside any tax benefit. IRS guidance on expanded HSA eligibility.
4. Coordinate Obamacare assistance with your income projection
If you buy individual health insurance, check financial help through Connect for Health Colorado. Colorado’s enrollment window for 2027 coverage runs November 1, 2026, through January 15, 2027. Enroll by December 15, 2026, for January 1 coverage; enrollment from December 16 through January 15 generally starts coverage February 1.
Federal premium tax credits and Colorado assistance have their own eligibility rules. Keep two estimates separate: your final 2026 income for reconciling this year’s assistance, and expected 2027 income for next year’s application. Update the Marketplace when your income or household changes.
The 2026 repayment risk is larger: Federal caps on repayment of excess advance premium tax credits no longer apply beginning with tax year 2026. If you received more advance credit than you qualify for, you must repay the full excess. IRS explanation of the repayment change.
A useful planning question is whether an eligible deductible IRA or HSA contribution changes your Marketplace household income. A taxable Roth conversion or capital gain can move it upward. Roth contributions and Colorado 529 deductions generally do not reduce federal ACA household income. Model the combined result before acting; reducing income does not guarantee eligibility. IRS premium tax credit questions and answers.
Leaving work before Medicare? See how final wages, conversions and brokerage sales affect household income in our Colorado early retirement ACA guide.
5. Consider Colorado’s 529 deduction before December 31
A CollegeInvest 529 contribution can help fund education while providing a Colorado income tax subtraction. For 2026, the per-beneficiary cap is $26,200 for single filers and $39,200 for joint filers. Qualifying contributions must meet Colorado’s rules; contributions to another state’s plan do not automatically qualify.
Contribute in time for the plan to record the payment for 2026, allowing for its processing deadlines. The subtraction reduces taxable income, rather than reimbursing the contribution dollar for dollar. Review qualified uses and Colorado recapture rules before withdrawing or rolling funds elsewhere. Colorado Department of Revenue CollegeInvest rules.
6. Understand what Trump Accounts offer your family
Trump Accounts are a new savings option for eligible children. During the growth period, ordinary contributions from all contributors generally share a $5,000 annual limit, including qualifying employer contributions. Certain government, charitable and rollover contributions are excluded. An eligible U.S. citizen child born in 2025 through 2028 with a valid Social Security number may qualify for the one-time $1,000 federal pilot contribution; the required election and eligibility conditions still apply. IRS Form 4547 instructions.
Family contributions are not a current federal income tax deduction. Do not count a parent’s deposit as an IRA write-off. IRS guidance on nondeductible family contributions.
The accounts also differ from 529 plans: withdrawals are restricted during the growth period, and traditional IRA rules generally apply beginning January 1 of the year the child turns 18. Tax and early-distribution penalties may apply later. Turning 18 does not make every withdrawal tax-free. IRS distribution rules.
For November planning, check the child’s eligibility, election or activation status, any employer benefit and your education savings priorities. Use the current IRS Trump Account FAQs for enrollment instructions. Compare the account with your 529 and household retirement needs before committing funds.
7. Finish the broader year-end review
- Withholding and estimated payments: Compare projected federal and Colorado tax with amounts already paid. A remaining payroll adjustment may help address a shortfall; payment timing matters. See IRS withholding and estimated-tax guidance.
- Charitable giving: Beginning in 2026, non-itemizers may deduct up to $1,000 of eligible cash gifts, or $2,000 on a joint return. Qualifying organization and documentation rules apply. Itemizers face a new 0.5% of adjusted gross income floor, so review timing rather than assuming every dollar is deductible. IRS charitable contribution rules and 2026 deduction changes.
- Business owners: Reconcile the books, review owner payroll and discuss retirement-plan setup and funding deadlines now. Those deadlines vary by plan and contribution type. Use our year-end tax planning checklist to organize the review.
Your November-to-April action calendar
| When | Action |
|---|---|
| November 2026 | Project income, check Marketplace estimates, review payroll elections and compare 2027 health plans. |
| December 15, 2026 | Colorado Marketplace enrollment deadline for January 1, 2027, coverage. |
| Before December 31, 2026 | Coordinate remaining 401(k) payroll deferrals, qualifying 529 contributions, charitable gifts and any proposed Roth conversion. Provider cutoffs may be earlier. |
| January 15, 2027 | Colorado’s 2027 open enrollment closes; later-window enrollments generally begin February 1. |
| Generally April 15, 2027 | Deadline for eligible 2026 IRA and HSA contributions. Confirm eligibility and designate the contribution year. |
Turn the checklist into a plan for your household
The right combination depends on income, cash flow, health coverage, family needs and business results. CPA of Denver works directly with you to review those facts and identify practical next steps.
Explore tax planning services, or contact CPA of Denver about a year-end review. Bring your latest pay statements, business results, contribution totals and Marketplace coverage information. Ask for secure transfer instructions before sending financial records.
General educational information as of November 6, 2026. Eligibility, limits and deadlines depend on your facts and applicable law. Individual recommendations require a separate engagement.