Weekly Recap: Year-End Tax Moves + Rising 2026 Health Costs

Written by: Ronke Adepoju

November 17, 2025

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How to Avoid a Tax Hit from Year-End Mutual Fund Distributions

As 2025 winds down, many investors in taxable brokerage accounts are facing steep year-end mutual fund distributions — and potentially large tax bills. With early planning, you can limit the impact or avoid it altogether.

Big Payouts, Bigger Taxes
After another strong market year, several mutual funds are preparing double-digit capital gains payouts, some as high as 25%, according to Morningstar. These distributions are taxable even if reinvested.

Reinvested distributions lower your cost basis, which can reduce future gains but increase this year’s tax bill.

“You’ve got some pretty eye-watering numbers this year,” said Brandon Clark, director of ETFs at Federated Hermes.

Why ETFs Are More Tax-Efficient
Exchange-traded funds (ETFs) rarely issue capital gains distributions because of their in-kind trading structure. This makes them a reliable option for investors seeking predictable tax outcomes — a topic we explored in our guide on how to build smarter long-term portfolios.

“The ETF solves a lot of those yearly tax problems,” Clark said during the FPA conference.

Smart Moves Before December

1. Compare the Tax Hit of Selling vs. Staying
   Selling a mutual fund with large gains may create a taxable event now—but it can eliminate years of future distributions. This is similar to the decision-making frameworks in our retirement planning breakdowns.
2. Watch the Fund’s Record Date
   Sell before the record date if you want to avoid the distribution. One day late still triggers the taxable payout.
3. Ensure ETF Replacements Fit Your Strategy
   ETFs track different indexes, sectors, and risk levels. Use guidelines like those in our investment fundamentals hub to check alignment.

Wealth Break Takeaway
Year-end mutual fund distributions are both predictable and avoidable. Compare selling costs, track distribution dates, and consider ETFs when appropriate. Small, informed moves can significantly reduce unnecessary taxes.
Explore similar money moves in:
• Is Your Money Working as Hard as You Do?
• How to Avoid a Tax Hit From Year-End Mutual Fund Distributions

Health Insurance Is Getting More Expensive in 2026 — Here’s How to Prepare

Open enrollment is underway, and millions of Americans are seeing sharp premium increases for 2026 across employer plans, Medicare, and ACA marketplace coverage.

Why Premiums Are Rising

ACA Marketplace premiums:
Projected to rise 26% on average, according to KFF. If enhanced subsidies expire next year, prices for 22 million Americans could spike 114%.

Employer coverage:
Deductions are rising 6.5% — the highest increase in 15 years, according to Mercer.

“What you’re seeing today may not be the actual price,” said Louise Norris of healthinsurance.org.

These shifts echo themes from our recent coverage on financial trade-offs shaping American households.

How to Choose the Right Plan for 2026

1. Review Your 2025 Health Spending
   Track co-pays, prescriptions, bills, and recurring care — similar to our guidance in how to build a year-ahead budget.
2. Compare Plans — Don’t Auto-Renew
   Check for:
   • doctor network changes
   • prescription coverage
   • updated deductibles and out-of-pocket maximums
3. ACA Buyers: Consider Timing
   Marketplace quotes may shift if subsidies change. Re-check late November and enroll before Dec. 15.
4. Match Plans to Your Health Profile
   Healthy individuals may benefit from bronze + HSA setups. Those with chronic needs should prioritize predictable coverage.
5. Use FSAs and HSAs to Lower Costs
   • FSA: pre-tax spending for healthcare
   • HSA: triple-tax-advantaged investing

Wealth Break Takeaway

Health insurance will get more expensive in 2026 — but with smart preparation, you can keep rising costs from overwhelming your budget.

Review spending, compare options, understand subsidy timing, and maximize tax-advantaged tools.

For more guidance, check out:
• How to Avoid a Tax Hit From Year-End Mutual Fund Distributions
• Weekly Recap: Debt Relief, Smart Investing & Financial Trade-Offs
• Is Your Money Working as Hard as You Do?