Year-End Wealth Planning

Taking into account OBBBA, along with Secure 2.0, some of the key 2026 considerations include:

• An additional $6,000 federal senior deduction for eligible individuals age 65 and older, subject to income limits.
• A separate Wisconsin retirement income subtraction of up to $24,000 per qualifying individual age 67 and older.
• New charitable deduction rules for itemizers and non-itemizers.
• A 2026 SALT deduction limit of $40,400, with phaseouts and continued AMT considerations.
• A $15 million federal estate and gift tax exemption per individual.
• Higher retirement plan catch-up contributions for individuals ages 60–63 and new Roth requirements for certain higher-income employees.

These changes may affect your tax, retirement, charitable giving and estate-planning strategies.

Here are some smart moves to consider:

• Review your income and tax bracket projections.
• Consider accelerating income, such as year-end bonuses or Roth conversions.
• Maximize 401(k), IRA and HSA contributions, where appropriate.
• Evaluate whether it makes sense to prepay property or state taxes.
• Review SALT and potential AMT exposure before accelerating tax payments.
• Time charitable donations strategically.

Planning ahead can help you avoid surprises—and potentially reduce your tax bill.

Rather than focusing on market performance, use year-end as an opportunity to make sure your portfolio remains aligned with your goals, time horizon and risk capacity.

• Potential moves to make include:
• Rebalancing your portfolio
• Reviewing diversification and concentrated positions
• Using tax-loss harvesting to offset gains
• Reviewing your risk tolerance in light of life or market changes

Holding cash can provide flexibility—especially for those nearing retirement. Actions you may want to consider include:

• Setting aside enough for 12–18 months of expenses
• Preparing for large upcoming costs
• Reassessing your mix of cash and investments
• Ensuring your cash reserves can cover near-term spending needs without requiring portfolio withdrawals during an unfavorable market period

Avoid holding more cash than you need, particularly if interest rates decline.

Use this time to make sure your plan still reflects your wishes.

• Review and update wills, trusts and powers of attorney.
• Confirm beneficiary designations across all accounts.
• Review your estate and gifting strategy in light of the $15 million 2026 federal exemption.
• Reevaluate life, disability and long-term care insurance.
• If you have children or grandchildren, consider whether Trump Accounts may fit your long-term savings strategy.

Year-end is a useful checkpoint—even if no major life changes have occurred.

OBBBA’s AMT changes may affect some higher-income taxpayers. That’s why 2026 is a good time to reassess.

• Evaluate whether accelerating deductions, such as charitable giving or tax payments, makes sense.
• Plan around large income events or stock option exercises.
• Consider how AMT may affect the benefit of the higher SALT deduction.

A tax advisor can help fine-tune your timing and strategy.

401(k) contributions must be made through payroll in 2026. For IRAs and HSAs, you can generally contribute for 2026 through the tax-filing deadline in 2027. Be sure to specify the correct tax year when making contributions.

New 2026 rules affect both itemizers and non-itemizers. Non-itemizers may deduct up to $1,000 of qualifying cash contributions or $2,000 for married couples filing jointly. For itemizers, charitable contributions must exceed 0.5% of AGI before the excess is deductible.

Depending on your circumstances, you may want to look into:

• Qualified charitable distributions (QCDs)
• Donor-advised funds
• Gifts of appreciated securities
• Timing gifts across tax years

For those age 70½ or older, QCDs can provide a tax-efficient way to give while potentially satisfying required minimum distributions (RMDs).

Trump Accounts are a new type of IRA for eligible children under the age of 18. Children who are eligible U.S. citizens born between January 1, 2025, and December 31, 2028, may qualify for a $1,000 federal contribution. Families with children or grandchildren can consider whether these accounts fit into their broader savings strategy.

If you experienced a major event—like marriage, divorce, retirement, a job change or inheritance—now’s the time to revisit a few things.

• Your tax strategy
• Estate planning documents
• Insurance coverage
• Investment allocations
• Cash flow and goals
• Beneficiary designations

You don’t have to go it alone. Our Private Wealth planning team is here to help. Together, we can:

• Evaluate your current strategy.
• Prioritize your next steps.
• Coordinate tax, retirement, investment and estate-planning considerations.
• Make confident decisions going into 2027.