2026 Tax Brackets: Strategies for Smarter Financial Decisions

The IRS has unveiled the federal income tax brackets for 2026, impacting income earned this year and tax returns filed next year. Understanding your tax bracket is vital for strategic financial moves, especially retirement planning. Distributions from accounts like 401(k)s and traditional IRAs are taxable, potentially pushing you into a higher bracket. To avoid this, consider pulling money from other sources or selling assets in a taxable brokerage account, which may result in lower-taxed long-term capital gains. Roth conversions during lower-income years can also help save on future taxes.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.