Keep more of what you earn

Almost every dollar you invest sits in one of three places, and what separates them is simply when the tax is taken. Holding money across all three gives you something valuable in retirement: a measure of control over your taxable income in any given year.

• Taxable brokerage — taxed along the way. You invest money you have already paid tax on, then owe tax on dividends, interest and realised gains as they occur. In return you get full flexibility and, often, lower long-term capital gains rates.
• Tax-deferred (401(k) / IRA) — taxed at withdrawal. Contributions are generally made before tax and lower your taxable income now; you pay ordinary income tax later when you withdraw. Required minimum distributions eventually apply.
• Tax-free (Roth) — taxed at contribution. You contribute money you have already been taxed on, and qualified withdrawals — including all the growth — come out tax-free. Roth IRAs have no required minimum distributions for the original owner.

By the numbers

The 2026 numbers

The limits and exemptions that frame this year’s planning. The IRS adjusts most of these for inflation, so they change from year to year.

• $24,500401(k) employee contribution limitSource: IRS, 2026
• $7,500IRA contribution limit — $8,600 if 50 or olderSource: IRS, 2026
• $32,500401(k) incl. catch-up at 50+ — $35,750 for ages 60–63Source: IRS / SECURE 2.0, 2026
• $72,000Combined employee + employer 401(k) contributionsSource: IRS, 2026
• $15M / $30MFederal estate & gift exemption — per person / per coupleSource: IRS / OBBBA, 2026
• $19,000Annual gift exclusion per recipient — $38,000 split by a coupleSource: IRS, 2026

Much of the value in tax planning is in the sequencing and timing — decisions that interact with each other and play out over many years. These are the areas a regulated adviser, working with your tax professional, tends to focus on.

• Roth vs pre-tax sequencing. Deciding how much to direct to tax-free versus tax-deferred accounts each year, weighing your tax rate now against the one you expect later.
• Retirement drawdown order. Choosing which accounts to draw from, and in what order, to smooth your taxable income rather than lurching between high- and low-tax years.
• Timing of gains. Realising capital gains and losses with an eye on your bracket, the higher long-term rate thresholds, and surcharges like the net investment income tax.
• Roth conversions. Using lower-income years — often between stopping work and the start of required distributions — to convert tax-deferred money to Roth at a lower rate, while watching the knock-on effects on Medicare premiums and the taxation of Social Security.

Book a session with an adviser

We arrange private introductions to regulated financial advisors for individuals and families with investable assets of $250,000 or more.

• Investable assets $250k+
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• Free initial consultation
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• No obligation