Most of us don’t love talking about taxes. They’re complex, they change constantly, and planning rarely feels urgent until it suddenly is. But this year is different — not because we’re facing a tax hike, but because we aren’t. With new legislation locking in current income tax brackets and making the higher federal estate exemption permanent, we finally have clarity.
And clarity creates opportunity. With 2025 nearly behind us, now is the time to position yourself for 2026 — especially if you’re nearing retirement, holding appreciated investments, or looking to reduce lifetime taxes with smart planning instead of last-minute decisions.
To help you zero in on what matters, I asked two Wealthramp advisors — Jeff Chan, CFP®, EA, and Meghan Muñoz, CFP®, CPA, and CDFA® — to share the strategies they’re using with clients right now.
Here’s what they want you to know
1. Brackets Stayed Low — But Planning Still Matters
We didn’t see the big jump many feared, which means there’s room to model income strategically. If your income is changing in the next 1–5 years, especially around retirement, now is the time to map out your marginal brackets and identify where future income may land.
2. Roth Conversions Are Still a Tax-Diversification Power Tool - Maybe More Than Ever
The window isn’t closing abruptly, but it's still wide open for those with pretax balances. Early retirees have a sweet spot before Social Security and RMDs start. Converting in controlled increments can reduce RMDs later and smooth lifetime taxes.
3. Charitable Giving Works Better When You Plan, Not React
If giving is part of your values, make it strategic. Bundling donations, gifting appreciated securities, or using a Donor-Advised Fund lets you support causes you care about and maximize tax benefit in high-income years.
4. The Standard Deduction Went Up — But Itemizing Can Still Pay Off
The standard deduction is staying elevated — $32,200 for married couples filing jointly in 2026 (up slightly from $31,500 in 2025) — which means most taxpayers will continue taking the standard deduction rather than itemizing. But itemizing is still valuable for some households. If you have significant mortgage interest, large medical bills, notable SALT deductions, or meaningful charitable giving, it’s worth running the comparison. You may not itemize every year, but tracking deductible expenses ensures you don’t miss out when itemizing does make sense.
5. Capital Gains Strategy Is Now a Year-Round Process
Selling investments isn't just a market decision — it's a tax decision. Meghan notes that pairing realized gains with harvested losses can meaningfully reduce tax drag. Think pruning, not chopping.
6. Estate Exemption Reset at $15M per Person — Opportunity for Long-Term Control
With the higher exemption now permanent and indexed, fewer families face immediate estate tax. But strategy still counts. For aging parents, holding appreciated assets may be best for a step-up basis. For younger wealth-builders, annual gifting keeps future growth outside the estate without urgency or complexity.
7. Don’t Spend Money to “Save on Taxes”
A deduction isn’t a discount. If the expense doesn’t add value to your life or plan, a tax break won’t magically make it worthwhile.
8. Your Marginal Rate Is the Number That Matters Most
It drives whether to convert to Roth, realize gains, defer income, or accelerate deductions. Most people know their total tax paid — few know their marginal bracket. One planning session can change how you make decisions.
9. Inherited IRA Rules Have Changed — Make Sure Your Family Knows
Under SECURE Act rules, many non-spouse heirs must drain inherited IRAs within 10 years — often during high-earning phases. Planning now prevents your kids from receiving assets with a built-in tax bomb.
10. A Withdrawal Plan Is as Important as an Investment Plan
Retirees who saved diligently can still lose more to taxes than necessary. Coordinating RMDs, Social Security, and which account to pull from first can add years to portfolio longevity. Meghan shared how QCDs helped a client reduce taxable income and meet RMD requirements in one move.
Why Now Is the Moment to Prepare — Not Panic
The year is winding down. You don’t need to rush or fear a tax cliff, but finishing 2025 with a strategy in place puts you in the driver’s seat for 2026. Take this month to review gains/losses, tighten charitable plans, and line up Roth/withdrawal decisions with your advisor and CPA. A thoughtful plan now sets you up for a smoother year ahead.
