As we head further into 2026, several tax changes are set to take effect that could influence your retirement income, tax bill, and long‑term planning strategy. Whether you’re already retired or approaching retirement, understanding these changes now can help you avoid surprises and uncover new planning opportunities.

One of the most notable updates is an increase in standard deductions, including a new “senior bonus” deduction for individuals age 65 and older. In 2026, eligible individuals may be able to deduct an additional $6,000, while married couples could deduct up to $12,000—on top of already higher standard deduction amounts¹. For many retirees, this could meaningfully reduce taxable income. However, this benefit does phase out at higher income levels, making income timing more important than ever.

At the same time, tax brackets have been adjusted for inflation, which may help offset rising costs of daily life. Still, many retirees see their taxable income increase over time due to Required Minimum Distributions (RMDs), pensions, and Social Security benefits. Without careful planning, these income sources can push you into higher tax brackets—even if your lifestyle hasn’t changed.

For those still working or nearing retirement, changes under the SECURE 2.0 Act could also affect savings strategies. Beginning in 2026, some higher‑income individuals age 50 and older will be required to make catch‑up contributions to workplace retirement plans as Roth (after‑tax) contributions instead of traditional pre‑tax contributions². While this may increase taxes today, it can create more tax‑free income in retirement and reduce future RMD exposure.

A thoughtful strategy can help manage taxes, protect cash flow, and support long‑term financial confidence. Call us today at 678-539-9518 and discuss how your unique situation could be affected this year.

1. https://www.etax.com/blog/2025/10/27/2026-tax-deductions-for-seniors-new-6000-bonus-standard-deduction-hikes/
2. https://www.msn.com/en-us/money/retirement/the-2026-changes-in-401-k-contributions-for-high-earners/ar-AA1VwkC5?ocid=BingNewsSerp

Investment advisory products and services made available through Impact Partnership Wealth, LLC (IPW), a Registered Investment Adviser. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

02/26-5222180

This blog is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.