For a year that’s been otherwise packed with major news, 2026 has offered few shake-ups for the world of financial planning.

There were some changes — they just weren’t massive. Exemption amounts ticked up, as did many other financial limits tied to inflation. Several small changes to retirement accounts took effect. And Trump accounts, with their concomitant $1,000 contribution for eligible newborns, went live in July.

It’s worth making a special note of the changes that went into effect due to the One Big Beautiful Bill Act, often referred to as OB3. They’re not new, but they’re big enough to keep in mind.

Keep your eye on the business-as-usual financial operations.

All the standard perennial reminders apply to 2026.

• Have you given all your gifts yet? Individuals can give up to $19,000 per recipient to any number of recipients ($38,000 for married couples) without reducing their lifetime gift and estate tax exemption.
• 401(k) contributions are due by December 31; IRA contributions are due by April 15, 2027.
  • The 401(k) limit is $24,500, plus $8,000 for people who were 50–59 or 64 and older as of this year; or plus $11,250 for those who were 60 to 63 years old as of this year.
  • The IRA limit is $7,500, plus $1,100 for people who were 50 or older as of this year.
• New Roth catch-up rules for 401(k) and 403(b) plans are now in effect. Participants age 50 and older who earned more than $150,000 (indexed annually for inflation) in FICA wages in the prior calendar year must make catch-up contributions as after-tax Roth contributions.
• Health savings account (HSA) contributions can total $4,400 if they’re self-only or $8,750 for a family; those limits are raised by $1,000 if the account owner is 55 or older. Employer contributions count toward this cap. The deadline for 2026 contributions is April 15, 2027.
• Dependent care flexible spending accounts (FSAs) can take $7,500 (or $3,750 for married individuals filing separately) for the year.
• Review any remaining healthcare or dependent care FSA balance and your plan’s year-end spending and carryover rules.
• Finally, make sure you’ve executed all your required minimum distributions (RMDs) from applicable accounts, including ones you’ve inherited. These are being enforced!
  • In 2026, donors who are 70½ or older can contribute up to $111,000 to qualified charities from traditional IRA accounts. These qualified charitable distributions, or QCDs, can offset RMDs.

The OB3 changes to charitable deductions continue to encourage ‘bunched’ donations.

A signature law of President Donald Trump’s second term was the One Big Beautiful Bill Act, which enacted sweeping changes to a number of areas — including taxes. For year-end planning, some of the most important details regard how charitable donations interact with tax filing.

There are two big changes.

First, there’s a floor you must meet before your donations have any effect on your taxable income. Only the total donation amount exceeding 0.5% of your adjusted gross income, or AGI, can be deducted.

For example, if your AGI was $1 million for 2026, then the first 0.5% of that total — in this case, $5,000 — can’t be deducted from your income. If your total donations come out to $10,000, then you’d be able to deduct $5,000; if they totaled $100,000, you’d be able to deduct $95,000.

Second, your donations will never offer more than a 35% deduction benefit. Using the example of a $100,000 donation: Last year you would have received a tax benefit of $37,000, or 37% of $100,000, if you were in the highest marginal tax bracket. This year, you would receive a tax benefit of $33,250, or 35% of $95,000 after accounting for the floor.

Taken together, these changes mean donors interested in maximizing their tax benefits should consider making large contributions every few years rather than smaller, regular contributions. For example, a donor could combine three years of planned contributions into one year. This strategy means the 0.5% AGI floor is only incurred once rather than in each of the three years, resulting in a larger total deduction. You have options that can allow you to make a deductible contribution in a single year while preserving an annual grant-making schedule, such as using a donor advised fund (DAF).

There is one major exception to these rules — QCDs are not subject to either the AGI floor or the tax-benefit ceiling. This makes utilizing QCDs for charitable giving an increasingly compelling option for eligible IRA owners.

You have many choices for giving to the next generation.

Most of the avenues for giving funds to minors aren’t new, though some have changed with OB3’s passage.

Normal gifts are unchanged; the inflation-indexed maximums for 2026 are $19,000 for an individual and $38,000 for a couple, per recipient. There is no cap on recipients.

UTMA accounts, named for the law that created them (the Uniform Transfers to Minors Act), are flexible and tax-advantaged, but he minor can gain control of the account at the age of majority. (That age varies from state to state.)

The ever-popular 529 account, which can be used to cover certain education expenses, received a boost from OB3, expanding how the funds can be used. For example, it broadened qualified expenses to include standardized test fees like the SAT and ACT, tutoring, and recognized postsecondary credentialing expenses.

Finally, the “Trump accounts” authorized by OB3 came online this year. These accounts are opened in a child’s name and use their tax profile. Individual contributions are generally made with after-tax dollars and are subject to a $5,000 annual limit. Employers may contribute up to $2,500 annually for an employee or the employee's dependents; however, employer contributions count toward the overall $5,000 annual limit.  Amounts generally may not be withdrawn before the child turns 18, after which the account is generally treated as a traditional IRA; no special tax rules apply. Additionally, any U.S. citizen born during calendar years 2025 through 2028 can receive a one-time $1,000 federal contribution deposited into their account.

Questions? Talk to your Private Wealth Advisor.

Year-end planning can be complex, especially for high net worth investors. If you have any questions, don’t hesitate — reach out to your Private Wealth Advisor team as soon as possible.