Greetings!
Advice for the Good Life is built on a simple premise: better outcomes follow better awareness—and this moment calls for both.
In this week’s Wealth Advisory, we unpack meaningful 2026 tax law changes that are already reshaping planning decisions for high earners and retirees alike. From new Roth requirements on catch-up contributions to a dramatically expanded SALT deduction cap, complexity is rising—but so is opportunity. As former Senator Max Baucus once observed, tax complexity itself is a kind of tax. The goal here is to turn that complexity into clarity, and clarity into advantage.
Our Wellness Navigator, Christine Despres, then shifts the focus from policy to physiology. Whether your January is dry, damp, or simply more mindful, she explains how alcohol reduction, hydration, movement, and digestion support the body’s five detox pathways—and why brain health, in particular, benefits from small, timely resets.
Finally, Etcetera zooms out. From Indiana football’s once-unthinkable championship run, to Greenland’s resurfacing role on the global chessboard, to subtle but telling changes unfolding in our Northern Rockies winter, three stories share a common thread: change—sudden, strategic, or silent.
As always, the good life belongs to those paying attention.
Wealth Advisory: Navigating 2026 Tax Law Updates for Better Financial Outcomes
Former Senator Max Baucus aptly noted that “tax complexity itself is a kind of tax.” This observation rings particularly true in 2026, as substantial shifts in tax policy present fresh financial planning considerations. Changes ranging from retirement contribution restrictions to enhanced deduction caps make understanding current tax legislation crucial for sound financial decision-making this year.
These developments hold special significance for investors over 50 with substantial incomes, demanding thoughtful planning from the year’s outset. Rather than treating these policy modifications as isolated events, savvy investors can leverage them as chances to refine their approaches and bolster their long-range financial strategies.
New Roth requirements for catch-up contributions
Among the most impactful modifications for retirement savers in tax year 2026 concerns catch-up contributions. Workers aged 50 and above have long been permitted to exceed standard contribution limits to enhance their retirement nest eggs. This provision benefits numerous scenarios, including individuals who began saving later, require additional funds for retirement, or experienced earlier financial challenges.
Historically, investors enjoyed flexibility between pre-tax and after-tax (Roth) alternatives. Beginning in 2026, high-income earners encounter a new limitation. Workers with Federal Insurance Contributions Act (FICA) wages reaching $150,000 or higher must now direct all catch-up contributions into Roth accounts. These dollars are contributed post-tax but accumulate and can be accessed tax-free during retirement. Standard catch-up amounts have risen by $500 to $8,000 for individuals 50 and older, while the “super catch-up” for ages 60-63 stays at $11,250.
What makes this significant? High earners who formerly used pre-tax catch-up contributions to reduce current tax obligations now face potentially higher taxable income. Consider a 55-year-old with $150,000 annual income who would have previously made a $7,500 pre-tax catch-up contribution, thereby lowering taxable income by that amount. Under current rules, this contribution must be after-tax, raising their present-year tax liability.
Although Roth contributions deliver advantages including tax-free accumulation and distributions in retirement, they offer no immediate tax reduction. For individuals in peak earning periods who depend on catch-up contributions to manage present tax burdens, assessing how this modification impacts tax planning approaches becomes essential.
SALT deduction cap sees substantial increase
A second significant modification expands possibilities for numerous taxpayers. The state and local tax (SALT) deduction has remained a focal point in tax policy for years, impacting millions of Americans paying considerable state and local income, property, and sales taxes. This deduction enables taxpayers to lower federal taxable income by amounts paid in state and local taxes, essentially avoiding double taxation on identical income across multiple government levels.
Previously capped at $10,000 since the Tax Cuts and Jobs Act of 2017, the SALT deduction has increased to $40,000 for tax year 2025 and $40,400 for tax year 2026, rising annually by 1% through 2029 under the One Big Beautiful Bill Act (OBBBA). This adjustment impacts numerous Americans, proving especially consequential for residents in high-tax states including California, New York, and New Jersey, where state and local taxes frequently surpass the former $10,000 threshold.
Notably, the elevated limit renders itemizing deductions more practical for many households that have claimed the standard deduction since 2017. Understanding this requires knowing how tax calculations function. Taxpayers select between the standard deduction or itemizing deductions. For 2026, the standard deduction stands at $16,100 for single filers and $32,200 for married couples filing jointly. Itemized deductions encompass mortgage interest, charitable contributions, qualifying medical expenses, and state and local taxes.
When the SALT cap reached $10,000 in 2017, itemizing benefits decreased substantially for many households. Combined with the standard deduction doubling then, the share of taxpayers who itemized dropped from approximately 30% before 2017 to merely 10% in 2022 per the Tax Policy Center.1 With the SALT cap now at $40,400 in tax year 2026, considerably more households may discover that itemizing reduces their tax burden.
As a basic illustration, consider a married California couple with $35,000 in state and local income tax, $8,000 in charitable donations, and $12,000 in mortgage interest. Under the previous $10,000 SALT cap, total itemized deductions would reach $30,000 ($10,000 SALT cap plus remaining deductions). Since this amount falls below the $32,200 standard deduction, this couple would forgo itemizing. Under current 2026 regulations, they can deduct the complete $35,000 in state and local taxes, elevating itemized deductions to $55,000 and lowering taxable income by an extra $22,800.
Implications for Social Security and comprehensive financial planning
Tax planning complexity extends beyond grasping individual changes to understanding their impact on your complete financial situation. This complexity intensifies for retirees managing Social Security.
Income thresholds determining Social Security benefit taxation have remained static for decades. Consequently, any changes increasing Adjusted Gross Income (AGI), like new Roth catch-up contribution requirements, may render more Social Security benefits taxable.
Notably, a new “senior bonus” deduction exists for 2025 through 2028 tax years for those 65 and older. This provides an extra $6,000 deduction for single filers or $12,000 for married couples, applicable even when itemizing. This benefit phases out for modified AGIs between $75,000 and $175,000 for single filers and between $150,000 and $250,000 for married joint filers. This introduces additional complexity since decisions elevating AGI could diminish or eliminate this deduction.
The enhanced SALT deduction creates tactical opportunities, particularly for former standard deduction claimants. If you’re approaching the itemizing threshold, consider strategies like concentrating charitable contributions into one year, prepaying property taxes where permitted, or timing additional deductible expenses to maximize benefits. Specific strategies naturally depend on individual circumstances. Remember that the increased SALT cap remains temporary, reverting to $10,000 in 2030, establishing a limited window to capitalize on higher deductions.
The bottom line? Tax considerations for 2026 present complexity with interconnected elements affecting households uniquely. Taking a comprehensive view and planning strategically can enhance prospects for financial success.
References
Wellness Navigator and Holistic Health Coach, Christine Despres, RN,NBC-HWC,CDP
Whether Your January is Damp or Dry, Read This
We’re halfway through January – how’s it going?
Whether you’re doing Dry January, Damp January (cutting back) or just being more mindful about alcohol, diet and exercise, your body is already thanking you. And if you haven’t started yet? No judgment – it’s never too late to give your system some extra support.
Here’s what’s happening in your body right now: your liver is getting a much-needed break from processing alcohol. But here’s what most people don’t realize – your liver is just ONE of five detox pathways working around the clock to protect your brain.
As a brain health coach with genetic risk for Alzheimer’s, I think about these pathways all the time. Why? Because when your detox systems are sluggish, toxins accumulate – and your brain is one of the first places to show symptoms: brain fog, poor memory, fatigue, mood swings, and inflammation.
Your Body’s 5 Detox Pathways:
- Liver – Your metabolic powerhouse that processes everything from alcohol to environmental toxins to hormones. This is the pathway getting all the attention during Dry January – and for good reason.
- Kidneys – These filter about 200 quarts of blood every single day, removing waste through urine. When you’re dehydrated or consuming too much processed food, your kidneys struggle to keep up.
- Digestive System – Your gut isn’t just about digestion – it’s a major elimination pathway. Regular bowel movements (yes, daily!) are essential for removing toxins your liver has processed. Constipation = toxin reabsorption.
- Lymphatic System – Think of this as your body’s drainage network. It collects cellular waste and delivers it to your bloodstream for elimination. Unlike your cardiovascular system, lymph has NO pump – it relies entirely on movement. More on this soon!
- Skin – Your largest organ releases toxins through sweat. This is why saunas, exercise and even dry brushing can support detoxification.
The critical point? When even ONE pathway is overwhelmed or sluggish, the others have to compensate. Your body is brilliant at adapting – until it isn’t. That’s when you start experiencing symptoms.
And your brain? It’s incredibly sensitive to toxic buildup. Cognitive decline doesn’t happen overnight – it’s the result of years of accumulated burden on these systems.
This is exactly why I take a ”dry” season with heart. Giving your liver a break allows it to catch up on other detox tasks – like clearing out stored toxins, processing hormones more efficiently and supporting better blood sugar regulation.
The opportunity? You can support ALL five pathways simultaneously with surprisingly simple habits. And when you do, the benefits compound – better energy, clearer thinking, improved mood, and long-term brain protection.
What I love most about this approach is it’s simply a great way to give thanks to your body for the miraculous work it does every single day. And it doesn’t need to be in January – though I do love starting the new year knowing I’ve taken out the trash. 😉
To your health,
Christine
The Wellness Navigator
Registered Nurse | Board-Certified Health & Wellness Coach | Holistic Brain Health Coach
P.S. Curious about your brain health baseline? Take my Brain Health Quiz here – it takes less than 3 minutes and gives you personalized insights.
Three stories. One thread: change—sudden, strategic, or silent. The good life, it turns out, still belongs to those who are awake, curious, and willing to adjust course.
From Cellar to Summit: Indiana’s Impossible Season
Every so often, sports hands us a reminder that history is not destiny. Indiana University—long regarded as the losingest program in major college football—did the unthinkable: College Football Playoff National Champions. Vegas gave them roughly 1-in-100 odds at the start of the season. And yet, sixteen games later, the Hoosiers stood alone—16–0, the first team in more than a century to do so.
This wasn’t just a championship; it was a full institutional turn. Culture. Patience. Belief compounded over time. For fans, alumni, and anyone rebuilding something meaningful, it was a living parable: past performance is not a prison. Sometimes the longest winters produce the loudest spring.
Greenland, Davos, and the Chessboard of the Arctic
At the World Economic Forum in Davos, former President Trump revived a once-dismissed idea with renewed seriousness: Greenland. What sounded like geopolitical trolling years ago is now being discussed through the lens of shipping lanes, rare earth minerals, national security, and a rapidly warming Arctic. As ice retreats, maps are being redrawn—not just environmentally, but economically and strategically.
Whether one views this as provocation, foresight, or theater, it underscores a broader truth: climate change isn’t just an environmental story—it’s a power story. And the Arctic is no longer peripheral; it’s central.
A Too-Warm Winter in the Northern Rockies
Closer to home, this winter has felt…off. In the Northern Rockies, warmer temperatures are quietly reshaping rhythms that once felt fixed. Birds are lingering instead of migrating. Plants are budding early, vulnerable to a late snap. Insects that once died off are overwintering with ease.
These aren’t headlines so much as signals—subtle, living indicators that systems we depend on are shifting. For those who pay attention to land, seasons, and stewardship, it’s a reminder that change often arrives not with drama, but with drift. The question isn’t whether adaptation is coming—but whether we notice it in time.
That’s all for today.
Thanks for reading,
