For Massachusetts residents: The MA DOR has issued a draft technical information release regarding how it will conform to the new tax law changes. Some changes don’t affect your MA return (including the changes to itemized deductions), but some will be treated differently on your MA return than your federal return (examples include no tax on tips or overtime and the higher dependent care pre-tax deduction on your W2). It is more important than ever to work with a tax professional that is familiar with these changes.
The IRS has released a draft form 8949 for reporting the sales of capital assets (such as stocks, bonds, mutual funds, homes and digital assets). The draft form has a number of new lines for reporting of sales of digital assets. Those will no longer be mixed in with the sales of stocks and bonds.
Warren Buffett, in a letter to Berkshire Hathaway shareholders describing his gifts of Berkshire stock to his children, revealed that he is “going quiet” as he transitions into his own form of retirement. His final advice at the end of the letter: “Don’t beat yourself up over past mistakes–learn at least a little from them and move on. It is never too late to improve.”
The IRS has announced changes to IRA, 401(k) and other retirement plan annual limits for 2026. Workers under age 50 can contribute $24,500 per year to their workplace 401(k) or similar plan next year. The catch-up contribution for those 50 and older by 12/31/26 is $8,000, and this must be contributed to the Roth portion of your employer plan if your previous year’s FICA wages from the employer exceeded $145,000. If you are age 60-63 by 12/31/26, then your catch-up contribution is $11,250 instead of $8,000.
IRA and Roth IRA contribution limits are increasing to $7,500 if you are under age 50, and $8,600 if you are age 50 or over.
Senior advisors Jennifer Climo and Jonathan Harrington will be running the Exeter NH Thanks-4-Giving 5K and 10K on Thanksgiving morning this year, along with members of their families. Milestone Financial Planning is a Gold level sponsor of the event. Pictures to be shared in our next newsletter!
Taxes and financial planning are complex, but you don’t have to navigate them alone. A financial advisor can help you stay informed about tax law changes, optimize your savings and investments, and avoid costly mistakes. If you need tailored guidance, our team is here to help. Talk to an advisor or call (603) 589-8010 to integrate tax planning into your comprehensive financial strategy.
Disclaimer:
The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.
Milestone Financial Planning, LLC (“Milestone”) is a fee-only financial planning firm and registered investment advisor headquartered in Bedford, NH. Registration does not imply a certain level of skill or training. Milestone works with clients on an ongoing, long-term basis, providing financial planning, tax planning, retirement planning, and investment management services. Fees are based on assets under management and may include a financial planning fee. Milestone receives no commissions or referral fees and, as a fiduciary, is required to act in clients’ best interests. Advisory services are offered only where Milestone and its representatives are properly licensed or exempt from licensure. More information, including fees and principal risks, is available in Milestone’s Form ADV Part 2A. For help with your investments or financial planning, contact one of our fee-only advisors.
