Planning well matters: financial and tax decisions that make the difference in 2026

A practical guide prepared by Evolution Wealth Advisors together with Orange Accounting

One of the best-known anecdotes in the world of wealth planning is that of Peter Thiel, co-founder of PayPal and a renowned technology investor, who managed to turn a retirement account (a “Roth IRA”) into one of the largest ever recorded.

In the late 1990s, Thiel made contributions within the allowed limits to his Roth IRA and invested that capital in private stakes in early-stage companies, including PayPal and other high-growth technology companies. Over time, and after multiple liquidity events, the value of that account came to reach several billion dollars, fully benefiting from the tax-free nature of this type of vehicle.

Thiel did nothing outside the legal framework. He simply combined three key elements: he chose a tax-efficient structure, invested early in high-potential assets, and let compound growth work for years without tax friction. The result was an extreme—but illustrative—example of the impact that proper long-term wealth and tax planning can have.

The start of the year is an ideal time to take a step back, organize your financial strategy, and make sure you’re taking advantage of all the available tax and wealth-planning opportunities. Planning ahead helps you make better decisions, reduce unnecessary risks, and build a more efficient strategy over time.

In this edition, we combine two complementary perspectives: on the one hand, a checklist curated by Evolution Wealth Advisors with the main financial actions to review at the beginning of the year; and on the other, a clear and practical summary that our friend and collaborator, Camila Roizental, CPA, prepared on the main changes introduced by the One Big Beautiful Bill Act and how they may affect you in 2026.

What we recommend reviewing at the beginning of the year — Evolution Wealth Advisors

1. Maximize your contributions to retirement accounts

• Retirement accounts remain one of the most important pillars of long-term tax planning. For 2026, contribution limits continue to be a key tool to reduce current taxes and accumulate capital efficiently.

• Check whether you’re making the most of your 401(k) plans, traditional IRAs, or Roth accounts, and evaluate whether a Roth conversion could make sense based on your income level and future projections. In many cases, small decisions made today have a significant impact on the real value of your wealth in 10 or 20 years.

2. Evaluate your donation strategy

• If you’re considering significant donations this year, now is a good time to plan ahead. Donor-Advised Funds continue to be an efficient tool to claim the tax deduction today and distribute your contributions to charitable organizations in an orderly way over time.

• They’re especially useful if you expect a high-income year or if you want to structure a philanthropic strategy aligned with your family values and your estate planning.

3. Update your estate plan

• Documents such as wills, trusts, powers of attorney, and beneficiary designations tend to become outdated faster than we imagine. Family changes, new investments, or real estate acquisitions may require relevant adjustments.

• Taking the time to review these documents helps avoid future conflicts and ensures that your estate plan reflects your goals exactly. This review is especially important for families with assets in multiple jurisdictions or with offshore structures.

4. Think strategically about gifts and the “Gift & Estate Tax”

• The annual gift exclusion has increased to $19,000 per person, or $38,000 per couple, and the lifetime exemption remains around $14 million, with new adjustments expected for 2026.

• These thresholds create opportunities to plan wealth transfers in an orderly way, reduce future exposure to estate tax, and support children or grandchildren in a tax-efficient manner. In addition, direct payments for education or medical expenses remain an effective way to transfer value without using up annual or lifetime limits.

5. Explore education accounts such as 529 plans

• 529 plans continue to be a highly efficient tool for saving for education expenses, with tax-free growth and tax-free withdrawals when used for qualified education.

• They are especially useful for integrating education planning into your legacy strategy while also helping reduce the estate subject to estate taxes.

6. Keep “Tax-Loss Harvesting” in mind throughout the year

• Although it’s often associated with year-end, tax-loss harvesting is a tool that can be used strategically throughout the year. Keeping it in mind allows you to respond promptly to market movements and optimize your tax burden in a more dynamic way.

• Proper loss management can help you offset current or future gains, reposition your portfolio without increasing your overall tax bill, and apply up to $3,000 against ordinary income, carrying the excess forward to later years. It’s worth reviewing periodically with your advisor as part of an ongoing tax strategy.

The tax changes in effect for 2026 — prepared by Camila Roizental, CPA

Following the passage of the One Big Beautiful Bill Act, the IRS issued new guidance introducing important changes for both individuals and business owners. Many of these provisions began to apply in 2025 and continue to have implications in 2026.

Below, I’m sharing a simple summary to understand what changed, what remains in place, and how it may impact your tax planning.

1. Increases in the standard deduction

• The IRS confirmed higher standard deductions for 2025 and 2026.

• Tax year 2025 (filed in 2026)

• Single/MFS: $15,750

• Married filing jointly: $31,500

• Head of Household: $23,625

• Tax year 2026 (filed in 2027)

• Single/MFS: $16,100

• Married filing jointly: $32,200

• Head of Household: $24,150

• New deductions: tips, overtime, and auto loans (2025–2028)

The legislation introduced several new deductions available even to those who don’t itemize deductions:

• Deduction for tips (“No Tax on Tips”)

• Up to $25,000 annually for workers in tipped occupations, with a phaseout for higher-income taxpayers

• Deduction for overtime (“No Tax on Overtime”)

• Up to $12,500 per person (or $25,000 for couples) on eligible overtime income.

• Auto loan interest deduction

• Up to $10,000 per year in interest on financing for new personal vehicles assembled in the U.S.

3. Additional standard deduction for seniors (2025–2028)

• People age 65 or older can claim an additional $6,000 deduction on top of their standard deduction.

• Couples in which both qualify could receive up to an additional $12,000.

4. Increase in the estate and gift tax limits

The law raises the estate and gift tax exclusion thresholds to approximately:

• $15 million per individual

• $30 million for couples

5. QBI Deduction (Section 199A) becomes permanent

It was confirmed that the 20% deduction on pass-through business income (S-corps, partnerships, and LLCs) becomes permanent.

• Approximate thresholds:

• $403,500 (joint filing)

• $201,750 (single filers)

• Above these levels, phaseout rules apply.

6. Reinstated accelerated depreciation

• The legislation reinstated 100% accelerated depreciation for eligible assets placed in service, which may generate significant benefits for companies planning capital investments.

7. More favorable rules for deducting business interest

• Adjustments were also introduced to the limitations on interest deductions, allowing in many cases greater deductibility for businesses.

What to consider now? Some practical actions to evaluate:

• Review income projections

• Adjust withholdings or estimated payments as applicable

• Maintain proper documentation for tips, overtime, or deductible interest

• If you have a business, prepare accounting and payroll systems for new reporting rules

• Assess eligibility for the QBI deduction

• Plan asset purchases strategically to take advantage of accelerated depreciation

• People over 65: confirm the application of expanded deductions

Final reflection

The One Big Beautiful Bill Act introduces some of the most significant tax changes since the 2017 Tax Cuts and Jobs Act. Although some provisions are temporary and others permanent, they all open planning opportunities for both individuals and businesses.

Many of these decisions don’t make headlines or spark dinner-table conversations, but over time they make a material difference in your wealth and your family’s financial peace of mind.

If you’d like to review which of these actions make the most sense for your particular situation, Evolution Wealth Advisors and Orange Accounting will be happy to help you build a plan aligned with your financial, tax, and estate objectives.

This content is aimed primarily at U.S. taxpayers. For individuals with other nationalities or multijurisdictional tax situations, the implications may vary significantly. As always, we recommend consulting tax and legal advisors before making decisions.

Article written by Camila Roizental, Michael Marciano, and Edmundo Castillo.

Disclaimer / Legal Notice:

EVOLUTION WEALTH ADVISORS LLC has prepared the Content. as a service to EVOLUTION WEALTH ADVISORS LLC. readers. It is provided only for general information, and it is not intended to address your requirements or to constitute any form of advice or recommendation (including but not limited to legal advice). EVOLUTION WEALTH ADVISORS LLC. has used reasonable efforts in collecting, preparing and providing quality information and material, but does not warrant or guarantee the accuracy, completeness, adequacy or currency of the information contained in the Content. Users of information on any EVOLUTION WEALTH ADVISORS LLC. letters do so at their own risk and acknowledge that this information should not be relied upon in making (or refraining from making) any specific investment or other business or personal decisions (professional advice should always be obtained prior to making any such decision). In no way should EVOLUTION WEALTH ADVISORS LLC. be liable to you for any claims relating in any way to your inability or failure to perform any kind of research or related work or to perform such research or related work properly or completely, even if assisted by EVOLUTION WEALTH ADVISORS LLC., your use of the Content or your reliance on the information contained in the Content.

Evolution Wealth Advisors LLC has prepared this presentation as a service to its clients and readers. This presentation provides general information and does not constitute any form of advice or recommendation (including, but not limited to, legal advice). Evolution Wealth Advisors LLC has made a reasonable effort to collect, prepare, and provide quality information and material, but does not guarantee the accuracy, completeness, or timeliness of the information contained in this letter. Users of any material sent by Evolution Wealth Advisors LLC do so at their own risk and acknowledge that this information should not be relied upon when making (or refraining from making) any specific investment or other business or personal decisions (professional advice should always be obtained before making such a decision). Under no circumstances shall EVOLUTION WEALTH ADVISORS LLC be responsible for any claim related in any way to your inability or failure to conduct research or to conduct such research in an adequate or complete manner, even if you have the assistance of EVOLUTION WEALTH ADVISORS LLC