Taxes shape legacy whether families plan for them or not. In 2026, several changes influence how retirement savings are funded, how wealth transfers, and how families protect themselves against long-term risks.
Roth Catch-Up Rules Change for High Earners
Beginning in 2026, employees who earned more than $150,000 in the prior year must make catch-up contributions as Roth contributions rather than pre-tax.¹
While this doesn’t reduce the ability to save, it changes cash flow, withholding needs, and the future tax character of retirement assets. Planning ahead is essential to avoid surprises.
Estate Tax Exemptions Increased
The federal estate tax exemption increases to $15 million per individual in 2026, or $30 million per married couple, up from $13.99 million per person in 2025.²
The annual gift tax exclusion remains $19,000 per recipient.³
While fewer families may face estate taxes, this shift creates new planning opportunities around lifetime gifting, trust strategies, and multigenerational transfers.
Insurance Planning Deserves a Fresh Look
As retirement approaches, insurance needs often change. Some clients may no longer need the same death benefit structure they once relied on.
Section 1035 exchanges allow certain life insurance policies to be repositioned without triggering taxable events, potentially funding long-term care or hybrid solutions more aligned with retirement risk.⁴
Education and Family Planning Start Earlier Than You Think
529 plans allow tax-advantaged growth for qualified education expenses. Starting early amplifies the power of compounding, even with modest contributions.⁵
Bottom line: 2026 planning isn’t about chasing tax breaks. It’s about aligning strategy with retirement security, family protection, and legacy.
Tax rules shape outcomes over decades, not just filing seasons. A OnePoint advisor can help you review how today’s decisions may influence retirement security, family protection, and long-term legacy planning.
Footnotes
- Internal Revenue Service, SECURE 2.0 Act – Roth Catch-Up Contribution Rules
https://www.irs.gov/newsroom/treasury-irs-issue-final-regulations-on-new-roth-catch-up-rule-other-secure-2point0-act-provisions - Internal Revenue Service, Estate Tax Overview
https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax - Internal Revenue Service, Gift Tax Exclusion Amounts
https://www.irs.gov/businesses/small-businesses-self-employed/gift-tax - Internal Revenue Service, Section 1035 Exchanges
https://www.westernsouthern.com/life-insurance/what-is-a-1035-exchange - Internal Revenue Service, Qualified Tuition Programs (529 Plans)
https://www.irs.gov/taxtopics/tc313
Investment advisory and financial planning services offered through Bleakley Financial Group, LLC, an SEC registered investment adviser, doing business as OnePoint BFG Wealth Partners (herein referred to as “OnePoint BFG”). For more information regarding OnePoint BFG including important disclosures, please visit https://adviserinfo.sec.gov/.
The third-party information contained herein is provided for informational and discussion purposes only. OnePoint BFG does not represent this third-party information as its own. While OnePoint BFG has gathered this information from sources deemed to be reliable, OnePoint BFG has not reviewed or verified any information input by your financial professional or that of the third-party source, nor can OnePoint BFG guarantee the completeness or accuracy of this data.
OnePoint BFG does not offer legal or tax advice. This document is not a substitute for the advice of a qualified attorney or tax professional. You should not take any action based solely on the information provided on this report without seeking legal counsel from a licensed attorney or tax professional in your jurisdiction. No attorney-client relationship is formed by your use of this document.
This communication has been provided for informational purposes only and should not be considered as investment, legal or tax advice or as a recommendation. This material provides general information only. OnePoint BFG does not offer legal or tax advice. Please contact legal counsel or your tax advisor to recommend the application of this general information to any particular situation or prepare an instrument chosen to implement the design discussed herein. Circular 230 notice: To ensure compliance with requirements imposed by the IRS, this notice is to inform you that any tax advice included in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of avoiding any federal tax penalty or promoting, marketing, or recommending to another party any transaction or matter.
OP 25-0477
