Year-End Countdown: Your 2026 Deadlines and Contribution Limits

Some of the best tax moves of the year have a hard stop on December 31, while others give you until you file. Limits went up across the board for 2026, so here is what you can save, and when it has to be done.

2026 contribution limits at a glance

Roth IRA Income Limits

You can make a full Roth IRA contribution below the first number and none above the second.

Over the limit? A “backdoor” Roth may still work, but existing pre-tax IRA balances can make it taxable. Let’s look at it together before you move any money.

New for 2026: Roth Catch-Ups for Higher Earners

If you are 50 or older and earned more than $150,000 in FICA wages from your employer in 2025, your 2026 catch-up contributions must go in as Roth. If your plan has no Roth option, you may not be able to make catch-ups at all. Check your payroll elections before your last paycheck of the year.

Cash Balance Plans: the way to save in a really big way

For business owners, a cash balance plan is the biggest tax-deductible savings tool available. It is a pension that works like a 401(k) account, and contributions are based on your age and income. Paired with a 401(k), many owners in their 50s and 60s can put away well over $200,000 a year.

The best part for timing: a 2026 plan does not have to exist yet. You can adopt and fund it up to your business tax filing deadline, including extensions. The minimum contribution is generally due by September 15, 2027.

A few things to know before you jump in:

• It’s a commitment. These plans are designed to be funded for several years, not one.
• Employees count. If you have staff, the plan may need to include them.
• An actuary runs the numbers. Expect setup and annual administration costs.
• S-corp owners, call us before December 31. Your contribution is based on 2026 W-2 wages, and those are set by year-end payroll.

Your Year-End Calendar

Two more 2026 changes worth a mention. If you don’t itemize, you can now deduct up to $1,000 of cash gifts to charity ($2,000 for couples). And the lifetime estate and gift exemption is now $15 million per person, $30 million per couple.

Not sure which of these apply to you? That’s what we’re here for. Reply to this email and we’ll map out your year-end list together.

Rethinking the 529: How I Think About Saving for My Daughter

In 15 years of advising families, I’ve never seen the 529 conversation shift the way it has in the last two.

Parents are asking me: Should I still contribute? Will college even matter in a few years? And if my kid gets a full ride or chooses a different path, am I stuck holding the bag?

These are great questions, and making sure we don’t overfund a 529 is part of the answer.

There’s no one-size-fits-all approach here. But someone once told me, “If we’re going to make decisions based on information, let’s use the facts. If we’re going to use opinions, let’s use mine.” So here’s my opinion, and how I think about it for my own daughter (who currently goes by Babycakes).

Why I still love the 529

I love 529s for their flexibility. Growth is tax-free when used for qualified education expenses, and I have the peace of mind of knowing I’m giving Babycakes a head start in life.

And they got even more flexible this year. Starting in 2026, you can use up to $20,000 per year, per student, for K–12 costs, double the old $10,000 limit. Qualified expenses now also include tutoring, books and curriculum, test fees, and trade or credential programs. (State tax treatment of these newer uses varies, so check with us first.)

And if she doesn’t need it?

If she gets a full ride or takes a different path, up to $35,000 of unused funds can be rolled into a Roth IRA in her name over several years. The rules: the account must be open at least 15 years, she needs earned income, and each year’s rollover counts against the annual Roth limit ($7,500 in 2026). That money could then grow for decades, potentially tax-free.

That’s why I like opening a 529 early and aiming for roughly $35,000 by college. If she needs it, it’s there. If she doesn’t, a Roth rollover is on the table.

Grandparents, take note: you can give up to $19,000 per grandchild in 2026 without touching your lifetime exemption, or front-load five years at once (up to $95,000, or $190,000 per couple) with a special gift tax election.

Beyond the 529: Permanent Life Insurance

If you want to save beyond that, this is the piece I want more parents to know about. For some families, a permanent life insurance policy on a child, such as an indexed universal life (IUL) policy, can be a flexible complement to a 529.

Here’s why I find it compelling:

• The cash value isn’t tied to education. It can be accessed through policy loans for college, a first home, or a business.
• Tax-deferred growth. Cash value grows tax-deferred, and properly structured policy loans are generally not taxable.
• Insurability for life. Your child gets coverage locked in while young and healthy.
• A long runway. Started in childhood, a policy has decades to build value that could supplement retirement income later.

And here’s why it isn’t right for everyone:

• Costs are real. Policies carry insurance charges, fees, and surrender charges, especially in the early years.
• Growth is limited. Indexed returns are subject to caps and participation rates, so you won’t capture the full market upside.
• It has to be funded. Underfunding can cause a policy to lapse, and a lapse with an outstanding loan can trigger a surprise tax bill.
• Loans reduce the death benefit and accrue interest.

This is a long-term commitment, not a savings account, and it deserves a careful, personalized conversation. If you’d like to explore it for your family, we’ll walk through the trade-offs side by side with your 529.

You’re not just saving for college. You’re preserving options for your child.

Have questions? Let’s chat.

Is Your Home Protected? The One-Page Fix Utah Homeowners Overlook

If your home isn’t titled in your trust, a transfer-on-death (TOD) deed may be the simplest way to keep it out of probate. Utah has allowed these deeds since 2018, and recording one takes a notary and a trip to the county recorder.

Why it matters

Without a trust or a TOD deed, a home in your name alone generally has to go through probate before your family can sell it, refinance it, or even change the title. That can mean months of delay, legal fees, and a public court record, all while your family is grieving.

A TOD deed names who inherits the home and passes it to them directly at your death. While you are alive, nothing changes:

• You keep full ownership. You can live in, sell, or refinance the home without your beneficiary’s permission.
• You can change your mind. The deed is revocable at any time by recording a new TOD deed or a revocation.
• Your beneficiary gets no rights until your death, and the home stays subject to any mortgage.

What it takes in Utah

1. Check your current title. Pull your recorded deed for the exact owner names and legal description. If you meant to put the home in your trust and never did, that’s the fix instead (more below).
2. Prepare the deed. It must meet the standard requirements for a recordable Utah deed and state that the transfer happens at your death. Name a backup beneficiary too.
3. Sign before a notary. Utah requires no witnesses.
4. Record it with the county recorder before your death. This is the step people miss. An unrecorded TOD deed found in a drawer has no effect.
5. After your death, your beneficiary records a certified death certificate with the county recorder to take title.

Watch-out

• A will can’t override it. A recorded TOD deed controls who gets the home, even if your will says otherwise.
• Co-owners matter. If you own the home jointly with survivorship, the TOD deed generally takes effect only after the last owner dies, so both owners should sign it.
• Minor beneficiaries shouldn’t inherit a house outright. Name a custodian or a trust for them.
• If you have a trust, the better fix is usually a new deed moving the home into the trust. A trust you never funded can’t protect a home it doesn’t own.
• Florida homes are different. Florida doesn’t use TOD deeds; a “Lady Bird” (enhanced life estate) deed often fills that role there.

One recorded page can save your family months. If you’re not sure how your home is titled, send us your address and we’ll check it together, then loop in your estate attorney to prepare and record the deed.

Disclosures

This newsletter is for educational purposes only and is not individualized investment, tax, legal, or insurance advice. Contribution limits and rules are based on IRS and Utah guidance as of October 2026 and may change. Life insurance products involve fees, charges, and risks, and policy guarantees depend on the claims-paying ability of the issuer. Consult your financial, tax, and legal professionals before acting. Park City Wealth Advisors is a dba of OneSeven.

Sources

• IRS 2026 401(k) and IRA limits, Roth phase-outs
• 2026 HSA limits
• 2026 defined benefit and 415(c) limits
• Cash balance plan deadlines
• Schwab: 2026 limits and Roth catch-up rule
• Lathrop GPM: 2026 estate, gift, and QCD limits
• Merrill: OBBBA changes for households
• com: 529 changes for 2026
• Utah Code 75-6-409: TOD deed requirements
• Utah TOD deed overview