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2026 Tax Law Changes You Should Be Aware of

August 11, 2026

There have been a few major tax law changes for 2026:

  • Retirement plan catch-up contributions must be Roth contributions if wages are greater than $150,000. (Note: This is not necessarily a bad thing as those in the top tax bracket tend to stay at the top tax bracket after retirement.)
  • ABLE program age requirement has been raised from 26 to 46, greatly expanding eligibility for Americans with disabilities.
  • Trump Accounts officially launched on July 4, 2026, but the rules are still not 100% clear. Here is what we know so far:
    • If you had a child born between 2025 and 2028, the federal government will contribute $1,000 into a Trump Account. 
    • Children born between 2016 and 2024 don’t qualify for the $1,000 federal grant but may still receive a separate $250 contribution: Michael and Susan Dell have pledged funding for children in that age range who live in a zip code with a median household income of $150,000 or less. 
    • Up to $5,000 can be contributed by parents, family members, and employers per child annually. 
    • The child does not need to have earned income to receive a contribution. 
    • At age 18, the account acts like a traditional IRA. 
    • Contributions from family members, etc. are not taxable. 
    • Growth in the account, along with any government or nonprofit contributions, is taxed as ordinary income when withdrawn. 
    • The account can be converted into a Roth IRA. 
    • Neither Schwab nor Fidelity are offering Trump accounts today, but they have stated that they do intend to offer them. They have not given a timeline. 
    • To get started, parents (not grandparents) must complete IRS Form 4547. This can be done when taxes are filed or in the Trump account app. 
    • More information can be found at www.trumpaccounts.gov. 

We’ll keep you posted as more information comes available.