10 Simple Steps to Prepare Your IRA for the New Year

Between Thanksgiving and New Year’s, many people focus on family and holiday traditions. But for IRA investors, it’s also a key time to review retirement accounts and take a few proactive steps. Starting the year organized can reduce stress at tax time and set your retirement savings on stronger footing for 2026.

Whether you invest in mutual funds, bonds, real estate, or alternative assets, this year-end IRA checklist walks through ten practical actions to take before December 31. If you manage a self-directed IRA with nontraditional investments, a few of these steps are particularly relevant for staying on track with IRS rules.

1. Review your 2025 IRA contributions and investment activity

IRA holders may want to begin their year-end review by checking whether 2025 contributions were recorded accurately and applied to the correct account type. Whether you contributed to a Traditional IRA, Roth IRA, SEP, SIMPLE, or Solo 401(k), it’s important that contributions are correctly designated.

Take time to review all investment activity across the year. For traditional investors, this might include stock purchases or dividend reinvestments. If you hold a self-directed IRA, you’ll also want to review activity involving real estate, private placements, notes, cryptocurrency, and any income or expenses related to those assets.

All transactions should be documented properly to support IRS reporting and help guide your broader retirement planning decisions.

2. Follow up on pending transfers or transactions

Because year-end is a high-volume period for IRA custodians, you’ll want to confirm that any pending account activity is progressing as expected.

This includes checking that:

• Custodian-to-custodian transfers are finalized
• Indirect rollovers were redeposited within the required 60-day period
• December investments, particularly alternative assets, were recorded before year-end

If you’re unsure about the timing of a real estate closing or a private placement, contact your custodian directly. Delays in processing may affect how transactions are reported on your year-end statements and Form 5498.

3. Confirm your year-end account value

Your retirement account’s Fair Market Value (FMV) must be reported to the IRS each year, and for self-directed IRAs, that means submitting proper documentation. Publicly traded assets update automatically, but alternative holdings like real estate, private companies, and notes require manual input.

Depending on your investments, FMV documentation could include:

• Real estate appraisals or comparative market data
• Year-end statements from private investment sponsors
• CPA-prepared valuations for LLCs or partnerships
• Outstanding balances and accrued interest for promissory notes

Most custodians ask for these by mid-January, so verify your custodian’s deadline early to ensure timely Form 5498 reporting.

4. Understand your Required Minimum Distributions (RMDs)

If you’ve reached Required Minimum Distribution age, be sure to plan ahead so your 2026 withdrawal is completed by December 31. Your RMD is calculated using your December 31, 2025 retirement account value and an IRS life expectancy factor.

SECURE 2.0 shifted the RMD age to 73 for those born between 1951 and 1959 and 75 for those born in 1960 or later. RMD rules apply to Traditional IRAs, SEP and SIMPLE IRAs, and inherited IRAs, but not Roth IRAs during the original owner’s lifetime.

For self-directed IRAs holding illiquid assets, you may need to plan well in advance to raise funds or arrange an in-kind distribution. Qualified Charitable Distributions (QCDs) can also fulfill your RMD and reduce taxable income if completed before year-end.

5. Prepare your tax documents

Organizing your IRA documentation now can streamline your tax preparation in the months ahead. Gather the essential records you’ll need for accurate retirement account reporting.

For all IRA investors, a few documents you might need to compile can include:

• Annual statements from all custodians
• Trade confirmations and transaction records
• Contribution receipts and distribution records

If you manage a self-directed IRA, this list could expand to include:

• Rental property income and expense logs
• Purchase agreements or sale records for private investments
• Subscription agreements and operating agreements
• Promissory note payment logs and interest received
• FMV documentation and supporting appraisals

Consider setting up a digital or physical filing system to keep records easily accessible when tax season arrives.

6. Identify which tax forms you’ll receive

You’ll receive several IRS forms in early 2026 that relate to your IRA activity:

• Form 1099-R (by January 31): Reports distributions, RMDs, and Roth conversions
• Form 5498 (by May 31): Summarizes contributions and year-end FMV
• Depending on your retirement account holdings, you may also receive:
• FMV confirmations for alternative assets
• Schedule K-1s for any partnerships held in your IRA
• 1099-INT, 1099-DIV, or 1099-B for income or asset sales

Check these documents carefully. If any information seems incorrect, follow up with your custodian to resolve it early.

7. Review and refresh your online IRA portal

Log in to your account and make sure your contact details are current. This helps ensure you receive important documents without delay. Confirm your mailing address, email, and phone number are accurate.

Review your account balance and look for any unprocessed transactions. Also, check your beneficiary designations, especially if you’ve experienced major life changes.

If you hold alternative assets, confirm that all necessary documents like operating agreements, subscription agreements, or purchase contracts have been uploaded and processed. If available, enabling two-factor authentication may add an extra layer of account security.

8. Plan your 2026 IRA contributions

The start of a new year is a great time to review IRA contribution limits and consider your retirement savings strategy. Contribution limits may change annually, so confirm the current numbers with the IRS or your custodian.

For 2026, explore your options for Traditional IRAs, Roth IRAs, SEP and SIMPLE IRAs, or Solo 401(k)s. If you’re 50 or older, you may be eligible for additional catch-up contributions.

You can still contribute toward your 2025 limit through April 15, 2026. Early contributions may allow more time for potential compound growth and improve flexibility if investment opportunities arise early in the year.

9. Avoid common year-end IRA mistakes

Being aware of common pitfalls can help you avoid costly penalties and tax complications. Key mistakes to watch for include:

• Missing your RMD deadline (results in a 25% penalty)
• Making excess contributions beyond annual limits (triggers 6% penalty per year)
• Forgetting to update beneficiaries after life changes
• Missing FMV submission deadlines for self-directed IRAs
• Submitting year-end transactions too late for proper 2025 recording

Self-directed IRA holders should be especially mindful of FMV submission deadlines and transaction cutoffs. Submitting paperwork too late in December can cause it to be recorded in 2026, which affects valuation and tax reporting.

A thorough review in December can help prevent these issues.

10. Get organized for the new year

A structured system makes it easier to manage your IRA in 2026. Create labeled folders for both physical and digital documentation. Archive your 2025 materials and prepare for the new year’s activity.

Monitor deadlines, documents, and required actions as you go. This preparation supports a more confident and streamlined retirement planning experience and positions you to act quickly on investment opportunities when they arise.

Ready to take the next step?

If you would like support reviewing your IRA or exploring new investment opportunities, schedule a call with an IRA Counselor.

Equity Trust Company does not provide tax, legal, or investment advice. Any information provided in this material is for educational purposes only. It is your responsibility to consult with your tax, legal, or investment advisor for guidance specific to your situation.