SPECIAL TAX BLOG:
Most people don’t plan around tax law — because most people assume the law doesn’t change that much. But January 1, 2026, will mark one of the biggest automatic shifts in our tax code in decades. And if you’re near or in retirement, it could cost you more than you think. Here’s what’s happening: The 2017 Tax Cuts and Jobs Act (TCJA) temporarily lowered tax brackets, doubled the standard deduction, and raised the estate tax exemption. But unless Congress steps in, those provisions are set to “sunset” at the end of 2025 — reverting many rules to pre-2017 levels.
In plain English?
Your income taxes could go up.
Your estate exemption could drop nearly in half.
Your deductions could shrink.
And for retirees pulling from tax-deferred accounts like IRAs and 401(k)s, that means more of your hard-earned money could be taxed at higher rates. According to the nonpartisan Tax Foundation, over 60% of households — including many middle- and upper-middle-income retirees — will see higher tax bills under the old brackets. Yet very few have repositioned their assets or income plans to prepare. That’s the bad news.
The good news?
You still have time to act.
This year and next may be your last, best window to convert pre-tax dollars to Roth, realizing income at today’s lower rates. It’s also a smart time to re-evaluate your withdrawal strategy, coordinate Social Security timing, and use gifting or trust techniques to get ahead of a smaller estate exemption.
This isn’t about tax loopholes. It’s about using the current rules — while they’re still on your side.
Why this matters?
Because waiting could cost you — not just this year, but every year after. Smart planning now doesn’t just lower your tax bill. It puts more control in your hands, not Washington’s. If you want your retirement income and legacy to survive the tax changes ahead, the time to move is before January 1, 2026.