The new year brings some important tax and financial updates designed to give you more flexibility and opportunities. Recent legislation, like the One Big Beautiful Bill Act and SECURE 2.0 Act, introduced changes that could have an impact on your savings, retirement, and overall financial plan. Here’s a quick look at what’s new and how it might benefit you.
Extra Savings for Adults Age 65+
If you’re 65 or older, you can claim an additional $6,000 deduction, regardless of whether you take the standard deduction or itemize. A married couple where both spouses are 65+ can claim $12,000.
This benefit begins to phase out once income exceeds $75,000 (single) or $150,000 (joint) and phases out completely at $175,000 (single) and $250,000 (joint).
Charitable Donations Count, Even Without Itemizing
Even if you don’t itemize deductions, you can still deduct up to $1,000 (single) or $2,000 (joint) in cash gifts to public charities.
New Deductions for Tips, Overtime, & Car Loans
Several worker-focused deductions continue in 2026:
More Flexibility with 529 Plans
529 plans are now more flexible. Eligibility has expanded to more career training programs, and you can use up to $20,000 per student for K–12 expenses (up from $10,000).
Trump Accounts for Kids
Children born between 2025 and 2028 may qualify for a new savings account with a $1,000 government deposit and allow annual family contributions up to $5,000. Funds grow tax-free and can support education and other future expenses in adulthood.
Roth Catch-Up Contributions for High Earners
If you’re 50+ and earned more than $150,000 last year, any extra 401(k) contributions you make must go into a Roth account. You’ll pay taxes upfront, but your money grows tax-free and stays tax-free when you withdraw it
in retirement.
We’re Here to Help
These changes could open new opportunities for your tax and retirement plans, and we’d love to help you make the most of them. If you have questions or would like to explore your options, please don’t hesitate to reach out at any time.
Extra Savings for Adults Age 65+
If you’re 65 or older, you can claim an additional $6,000 deduction, regardless of whether you take the standard deduction or itemize. A married couple where both spouses are 65+ can claim $12,000.
This benefit begins to phase out once income exceeds $75,000 (single) or $150,000 (joint) and phases out completely at $175,000 (single) and $250,000 (joint).
Charitable Donations Count, Even Without Itemizing
Even if you don’t itemize deductions, you can still deduct up to $1,000 (single) or $2,000 (joint) in cash gifts to public charities.
New Deductions for Tips, Overtime, & Car Loans
Several worker-focused deductions continue in 2026:
- Up to $25,000 of qualified tip income
- Up to $12,500 per person, or $25,000 per couple, of the “extra” portion of overtime pay (the half in “time-and-a-half”)
- Up to $10,000 in interest on qualifying loans for new, U.S.-assembled vehicles.
More Flexibility with 529 Plans
529 plans are now more flexible. Eligibility has expanded to more career training programs, and you can use up to $20,000 per student for K–12 expenses (up from $10,000).
Trump Accounts for Kids
Children born between 2025 and 2028 may qualify for a new savings account with a $1,000 government deposit and allow annual family contributions up to $5,000. Funds grow tax-free and can support education and other future expenses in adulthood.
Roth Catch-Up Contributions for High Earners
If you’re 50+ and earned more than $150,000 last year, any extra 401(k) contributions you make must go into a Roth account. You’ll pay taxes upfront, but your money grows tax-free and stays tax-free when you withdraw it
in retirement.
We’re Here to Help
These changes could open new opportunities for your tax and retirement plans, and we’d love to help you make the most of them. If you have questions or would like to explore your options, please don’t hesitate to reach out at any time.
This article was featured in the Winter 2026 edition of the Rising Dividend Report.
Read more articles from this issue here.
This has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of publication and are subject to change without notice. Past performance is not indicative of future results.
Subscribe to Our Blog
Related Posts
