Wealth Intelligence

What if your most expensive tax decision in 2026 happens long before you file your return?

Tax prep looks backward; tax strategy looks ahead, and that gap is where real after-tax outcomes get decided.

A few high-impact levers to keep on the radar:

➡️ When Income Lands: Timing bonuses, self-employment income, and retirement distributions can help manage brackets.

➡️ How You Might Save: Consider taking advantage of the higher 401(k) limits in 2026, and catch-up provisions—but be sure to look into whether you need to use a Roth for those catch-up contributions.

➡️ Where Giving Shows Up: New rules change how charitable gifts and Adjusted Gross Income (AGI) limits work together.

➡️ What You Do in Down Markets: Tax loss harvesting can turn volatility into a tool, not just noise.

➡️ With most retirement accounts, once you reach age 73, you must begin taking required minimum distributions. Roth accounts are the exception. Withdrawal penalties may apply if you take the money before age 59½. Roth IRA distributions must meet a 5-year holding requirement and occur after the account holder reaches age 59½.

Preparing year-round can help shape future cash flow, flexibility, and choices.

When was the last time you checked the beneficiaries on your retirement accounts? 📄

A November 2025 Wall Street Journal article, titled “Leaving the Wrong Beneficiary on Your IRA Plan Can Be a Costly Mistake,” shared some examples that highlight how important it is to keep them updated:

● A young professional named his sister as beneficiary when his retirement account was tiny. Years later, he died without changing the form. By then, it was his largest asset. His sister inherited the account, not his wife and children.

● An employee with a $300,000 company-sponsored plan died without updating his beneficiary after his wife passed away and never named a contingent heir. His two stepsons expected to inherit. The money went to other relatives instead.

● Even the columnist writing the piece thought everything was in order, then checked and discovered no beneficiary listed.

A few simple steps can help manage trouble for heirs:

● Confirm every retirement account has a beneficiary and contingent beneficiary

● Think twice before naming your estate as the beneficiary

● Update forms after marriage, divorce, deaths, births, or when moving accounts to a new provider

Once something happens, these forms can be challenging to fix.

A quick review now might help with delays and conflict later on ✅