Our November Strategy Group call covered a wide range of important tax and retirement planning updates for 2026 and beyond. Jack Kiley provided a detailed update on new tax laws, retirement plan adjustments, and strategies investors should consider before year end.
Tax Updates for Individuals and Businesses
Jack outlined several major policy updates that will shape planning for 2026. Seven tax brackets were permanently extended. The SALT deduction cap increased to forty thousand dollars and will begin phasing out in 2029. Seniors will receive an additional six thousand dollar standard deduction. Business owners saw meaningful extensions as well including the twenty percent pass through deduction under 199A, permanent expensing rules for equipment, and enhanced incentive windows for opportunity zones. Jack also noted a new employer benefit that allows tax free repayment of employee student loans.
Opportunity Zones and Business Income Planning
Opportunity Zones were expanded, although their fundamental rules remain temporary. Jack reinforced how the capital gains treatment works after meeting the required holding periods. He also explained that the 199A deduction applies broadly to qualified business income and many rental activities, with additional considerations for real estate professionals.
Estate Planning and Wealth Transfer Updates
Estate planning received significant updates. The fifteen million dollar federal exemption amount per person is now permanent, along with the portability rule that allows married couples to combine exemptions. While most investors will not reach the exemption threshold, Jack emphasized the importance of gift tax returns when transferring appreciated assets to ensure accurate basis tracking and maximum exemption usage.
Retirement Plan Changes for 2026
Jack reviewed upcoming retirement plan adjustments. Beginning in 2026, 401K employee deferrals will increase to twenty four thousand five hundred dollars with an additional seventy five hundred dollar catch up for people age fifty and older. Total plan limits will increase to seventy two thousand dollars. IRA contributions and catch ups will also rise, and Roth treatment will be available in SEP and SIMPLE plans for the first time.
Roth Strategy and Conversion Timing
Jack explained why the timing of Roth conversions matters. Depending on income and future tax expectations, taking a deduction today may provide more value than tax free withdrawals later. He also noted that most people do not fully retire and continue earning income in some capacity, making Roth accounts useful tools for managing income during retirement years.
Updated IRA Beneficiary Rules
Jack reviewed the changes from the elimination of the stretch IRA. Most non spouse beneficiaries must now withdraw the full account within ten years. Because beneficiary designations override wills, Jack encouraged everyone to review their retirement account designations before year end. He also explained why Roth IRAs remain powerful estate planning tools, even under the ten year rule.
Required Minimum Distributions and the Bucket Theory
Required Minimum Distribution ages will rise from seventy three to seventy five by 2033. Jack covered aggregation rules, the differences between IRA and 401K RMDs, and how annual recalculations work. He closed this section with an overview of his bucket theory which helps investors build a balanced flow of taxable, tax deferred, and tax free money.
Mega Roth Contributions Explained
Jack provided an in depth breakdown of the Mega Roth for self employed investors using solo 401K plans. He explained how deferrals, employer contributions, and voluntary after tax contributions move into the Roth bucket. He also clarified the five year clock rules and confirmed that each conversion or contribution starts a new five year period for earnings.
Closing Notes
The session ended with questions on gift tax limits, titling rules across different states, and upcoming educational topics. Jack will host future sessions focused on real estate investing within retirement plans and has also offered to speak at regional investor meetups.
If you attended and have questions about any of the topics covered, contact our office or schedule a time to review your current plan.
Want the recording or future Strategy Group invites?
Complete the form below and we’ll make sure you’re added to the right list.
Note: This helps us confirm whether you’re a current client or attending as a guest so we can send you the correct information.