Like anything else, financial success starts with thoughtful planning and being intentional. While planning is always important, 2026 comes with even more changes than normal. A large part of this is due to the tax bill passed last July.
Baird has some incredible resources to help plan 2026, here are some highlights:
Key Numbers for 20261
- 401(k) limit: $24,500, with catch‑ups of $8,000 (50+) and $11,250 (ages 60–63).
- For those with wages over $150k making catch up contributions, you may be required to complete them in Roth form rather than pre-tax. Most employers will not automatically update this for you, so double‑check your elections and whether the change is relevant for you.
- IRA limit: $7,500, with a $1,100 catch‑up for those 50+. Remember your income level and employer retirement plan eligibility may affect your ability to contribute.
- HSA limit: $4,400 for individuals and $8,750 for families, plus a $1,000 catch‑up for those 55+.
Preserve Your Legacy with Intention
- The tax bill secured a higher estate exemption, reducing estate‑tax concerns for many households. But rules can always shift again, so using today’s favorable environment is a smart way to protect the legacy you want to leave.
- While most people don’t need to worry about estate taxes much with the current rules, the exemption could always go back lower. Take advantage of the current rules.
- A quick review of your estate plans can help ensure everything still matches your long‑term goals.
Stay Ahead of Tax Complexity
- With new thresholds in place, more people may be affected by changes without realizing it.
- Reviewing last year’s return is one of the simplest ways to catch issues early. We offer tax return reviews that do just that and help identify planning opportunities.
- Small adjustments now usually have a much bigger payoff than trying to fix things later.
- Remember, getting a large refund at tax time might feel great but it isn’t the most effective strategy. Essentially, you’re giving an interest free loan to the IRS.
Give with Purpose, Not Just for Deduction
- Charitable rules have shifted, but your motivation for giving doesn’t need to.
- Let your values lead and then build a simple strategy around them.
- If you’re charitably inclined, consider getting help to make sure your current strategy is optimal given the changes.
Support Your Family Through Consistent Habits
- Families have more tools available this year, including higher child tax credits and more flexibility with 529 education savings accounts
- Regular contributions to education or savings accounts often matter more than maximizing every rule.
- Setting up automatic transfers can take the pressure off and make good habits effortless.
Help Your Business by Simplifying What You Can
- Business owners can benefit from a range of deductions and expanded limits.
- Working with an advisor and tax professionals can be especially impactful this year to help ensure your business and personal finances are working together.
- A short monthly finance check-in can help you stay proactive without getting overwhelmed. Don’t be afraid to get help.
Connect Your Health & Wealth Decisions
- Rising healthcare costs make planning ahead more important than ever.
- Consider using HSAs, looking at Medicare options early, and talking through long‑term care needs before they become urgent.
- Investing in preventive care isn’t just good for your health it protects your financial plan too.
- Take care of your mental health. In today’s environment—where stress, information overload, and constant change are the norm—protecting your mindset is more important than ever.
Bottom line: You don’t need to master every rule or law change. What matters is staying aware, staying intentional, and making choices that support the life you want to build. If you have the time and energy to handle it all on your own, go ahead! But don't hesitate to seek out help to allow you more time to invest in enjoying 2026 your way.
Looking for more?
At Baird, we are incredibly blessed to have Tim Steffen, CPA-PFS, CFP®, CPWA®as our Director of Advanced Planning. If you can't already tell by alphabet after his name, Tim's one of the top minds in personal finance.
Tim recently shared a piece on key planning moves to consider in 2026. Do you prefer watching videos? Follow this link.