Looking for a rundown of some of the latest tax, gifting, and retirement planning changes? This guide covers eight updates for 2026 to keep you on top of the latest insights.
The 2017 Tax Cuts Extended via OBBBA
Many of the personal tax provisions from the 2017 Tax Cuts and Jobs Act (“TCJA”) had been scheduled to expire at the end of 2025, though such provisions were ultimately extended (after lengthy negotiations) by the One Big Beautiful Bill (“OBBB”), which was signed into law in July 2025. The legislation provides much needed clarity to taxpayers.
Additional Opportunities for Gifting
The federal estate tax exclusion and lifetime gift tax exemption increased dramatically from 2025 to 2026, from $13.99 million per person to $15 million per person.1 Individuals who had previously exhausted their lifetime gifting exemption may now find capacity to remove additional assets from their taxable estate. The annual gift tax exclusion remains at $19,000 per donee (gift recipient) for 2026.1
This increase may create a meaningful opportunity for high-net-worth individuals, particularly for those looking to transfer wealth efficiently across generations.
“Super Catch-up” Contributions for401(k) / 403(b) / 457
As a reminder, SECURE Act 2.0 included a new provision allowing older individuals (age 60-63) to make a “super” catch-up contribution up to $11,250 to their 401(k)/403(b)/457 retirement plan. Individuals must be age 60-63 by the end of the calendar year; otherwise, the age-50+ catch-up limit is $8,000 (for 2026).2
For those nearing retirement, this provision offers a valuable opportunity to accelerate savings during peak earning years.
“Rothification” of Catch-up Contributions For High Earners
As a result of SECURE Act 2.0, high earners (those who made more than $150,000 of FICA wages in 2025) who are age 50+ will be required to make catch-up contributions to their employer-sponsored plans to a Roth (after-tax) account. IRAs are not impacted by this new provision.3
While this change may reduce immediate tax deductions, it can enhance long-term tax diversification and create more flexibility in retirement income planning.
Charitable Deduction Floor & Cap
Beginning in 2026, taxpayers who itemize charitable deductions can only claim a deduction for the portion of qualified contributions which exceeds 0.5% of adjusted gross income (AGI). In addition, the new tax legislation caps the tax benefit for itemized charitable gifts at 35% for individuals in the 37% federal income tax bracket; as a result, taxpayers in the highest federal bracket are now subject to a “capped” benefit for their charitable gifts.1
These changes may require more intentional charitable planning, particularly for individuals who regularly make significant philanthropic contributions.
Notable Changes for the Alternative Minimum Tax (AMT)
The Tax Cuts and Jobs Act (TCJA) made favorable changes to the Alternative Minimum Tax (AMT), which reduced the number of taxpayers subject to AMT from 5 million in 2017 to only 200,000 in 2018. One Big Beautiful Bill (OBBB) lowers the AMT phaseout income threshold ($1m for joint filers; $500k for other taxpayers) and accelerates the rate at which the AMT exemption phases out (50 cents per dollar over the threshold, from 25 cents previously). As a result of the OBBB changes, more taxpayers are likely to be subject to AMT as of 2026.2
This shift reinforces the importance of proactive tax projections, especially for higher-income households who may now fall back into AMT exposure.
$40,000 Deduction for State and Local Tax (with a caveat)
OBBB increased the state-and-local-tax (‘SALT’) deduction limit from $10,000 to $40,000 as of 2025. However, the deduction decreases when Modified Adjusted Gross Income (MAGI) exceeds $500,000, with the deduction dropping to $10,000 for taxpayers with MAGI greater than $600,000. The SALT cap is scheduled to revert to $10,000 in 2030.3
This temporary expansion creates a planning window, particularly for individuals in high-tax states, but the income phaseouts add complexity that should be carefully evaluated.
New Deduction for Seniors (2025-2028)
OBBB created an additional deduction for seniors who are at least age 65. The $6,000 deduction is available to itemizers and non-itemizers (and would double to $12,000 for a married couple, provided that each individual is age 65+). However, income limits apply for this deduction, as the deduction phases out for single taxpayers with Modified Adjusted Gross Income (MAGI) between $75k-175k and for married taxpayers with MAGI between $150k-250k.4
This provision may provide meaningful tax relief for retirees, particularly those balancing income from multiple sources such as Social Security, retirement accounts, and investment portfolios.
What This Means for Your Plan
From expanded gifting opportunities to evolving retirement and charitable strategies, these changes reinforce the value of proactive, coordinated planning. Working with a Trust Point Financial Professional can help ensure your strategy reflects the latest legislation while staying aligned with your long-term goals.
Sources:
1 Source: Fidelity – “3 Big Changes to Charitable Giving” (October 17, 2025)
2 Source: KLR – “AMT Changes Under the Big Beautiful Bill Act: What to Expect in 2026” (August 25, 2025)
3 Source: CNBC – “Trump raised the SALT deduction limit to $40,000 for 2025 — here’s how to maximize it” (September 5, 2025)
4 Source: Morningstar – “3 Big Changes for Retirement Planning in 2026” (December 8, 2025, by Christine Benz)
