In ‘down markets’ it might make sense to take a required minimum distribution (RMD) in-kind, rather than selling the investments and satisfying the RMD obligation paying cash from the sales proceeds.

The IRS just published the inflation adjusted retirement plan contribution limits for 2026.

Funding an IRA with an amount that exceeds the annual limit under IRC 219 can render the entire account non-exempt in bankruptcy, and not just the excess portion. The resulting 6% excise tax under IRC 4973 is evidence that the funds are not fully tax-exempt.

This is just the beginning of expected onslaught of IRS Regulations and Form arising from the OB3 and the SECURE 2.0 Acts. With the IRS being deliberately understaffed these days, we could be waiting a long time for the needed guidance on how these new tax laws will be implemented.

The One Big Beautiful Bill Act (OB3) contains many new provisions, some of which are effective in 2025. Some planning steps can be taken before the end of 2025 to take advantage of these new provisions, primarily tax deductions.

This new interest in state wealth taxes could reflect a ‘be careful what you ask for (at the federal level with OB3) because you might actually get it.’ If the federal government is cutting back on programs that it used to financially share with the states, the states are not going to idly stand by and watch many of their public service programs disappear.

Wills and trusts often contain gifts and bequests of specifically identified assets. Wills and trusts often become stale, meaning that often governing instrument is not periodically updated. That is when the stale Will or trust instrument refers to an asset that no longer exists owned by the testator/settlor or his/her trust at death.

Any individual who claims a charitable deduction must comply with all of the reporting and disclosure requirements. Proper documentation is more than just a recommendation; it is a requirement. While the Tax Court’s decision acknowledged that it believed that the Besaws had made the charitable donations, it nonetheless disallowed their entire deduction due to the incomplete charity receipts. The Regulations must be followed as much as the statutes that authorize charitable deductions. Even undisputed charitable giving provides not tax benefit without meticulous documentation, and despite the best efforts of the donor to be transparent with the IRS.

Naming an estate as the beneficiary of an IRA is probably a mistake, because there are potentially two different distribution periods that might apply, which in turn can cause confusion that then leads to a 25% excise tax for the failure to take a required minimum distribution (RMD.)

Estate planning will now be about maximizing what beneficiaries actually receive after all taxes, whether those taxes are estate, GST,  inheritance, income, or capital gains.