Many high net-worth individuals will remain in relatively high tax brackets in retirement due to retirement plan distributions, rental income, pensions, and other income sources. As a result, building a tax-efficient portfolio and diversifying between pre-tax and after-tax savings today can meaningfully reduce future tax burdens and increase flexibility later in life.
Under SECURE 2.0, beginning in 2026, catch-up contributions for participants age 50 and older must be made as Roth (after-tax) contributions if their FICA wages last year exceed $150,000. This year’s limits include $24,500 in regular deferrals, an $8,000 catch-up for age 50+, and an enhanced $11,250 catch-up for those ages 60–63. While this change removes some current tax deductions, it increases tax-free growth potential.
For individuals who already expect higher future tax rates or who can benefit from expanded itemized deductions, Roth catch-up contributions may not be as unfavorable as they initially appear. With fewer deduction vehicles available and tighter caps, exploring additional tax-efficient and tax-advantaged strategies beyond retirement plans becomes increasingly important going forward.
Read more: ThinkAdvisor
At the beginning of the year, it’s a good practice to review your retirement plan contributions and evaluate whether they align with your long-term goals. Many participants contribute just enough to receive their employer’s match even when they can afford to save more. The additional income is often spent or invested elsewhere, missing the opportunity to build tax-advantaged savings and reduce current income taxes.
At Vibrance Wealth Management, we meet with participants regularly to help them understand the benefits of contributing beyond the employer match and show how increased contributions can improve retirement readiness. We also encourage participants to appreciate the value of employer matching because not all employers offer matching contributions.
Ultimately, contributing to a retirement plan is for the participant’s own future, not the employer’s. Once they understand this, saving more consistently becomes easier and more intentional.
Read more: Bankrate
Under the One Big Beautiful Bill Act, the new “Trump account” is scheduled to become effective on July 4, 2026. Designed to encourage early saving, the Trump account allows after-tax contributions of up to $5,000 per year for minors, even without earned income. For babies born between 2025 and 2028, the government provides a $1,000 seed contribution when an account is opened. The funds grow tax-deferred, but earnings are taxable upon withdrawal. At age 18, the account converts into a traditional IRA.
Withdrawals generally cannot be made before age 18. After conversion, penalty-free withdrawals are allowed for qualified expenses such as education and first-time home purchases. However, non-qualified withdrawals before age 59½ are subject to penalties. After age 59½, funds may be withdrawn for any purpose without penalty, though earnings are taxed as ordinary income.
The Trump account may benefit families who want to start retirement-focused savings early for children without earned income — particularly for newborns eligible for the seed contribution. However, for education funding, a 529 plan is more attractive due to higher contribution limits and tax-free withdrawals for qualified education expenses. For families able to fund a custodial Roth IRA, the Roth is also more attractive because of tax-free growth and withdrawals. As details continue to evolve, comparing options against your goals is essential.
Read more: SAVING FOR COLLEGE
Artificial intelligence offers many benefits in helping us manage both work and personal life. Some have suggested that AI will eventually replace financial advisors. As a profession, we have faced similar predictions before. When discount brokerage firms first emerged, many believed advisors would become obsolete. Later, robo-advisors entered the market with the same claim. Yet advisors who deliver real value have continued to thrive.
As fiduciary advisors, we believe the most important part of our role is guiding clients through emotional and complex financial decisions with empathy and perspective. AI cannot replace human connection, judgment, or emotional understanding. It may replace advisors who operate like robots — gathering assets and recommending products based solely on numbers rather than real-life circumstances.
That said, AI raises an important question for all of us: How can we deliver higher value and serve clients better? This question applies not only to financial advisors, but to every profession navigating a rapidly changing landscape.
Read more: WORLD ECONOMIC FORUM