^{By Todd Stankiewicz | CIO, SYKON Capital | Portfolio Manager, Free Markets ETF (FMKT)}

Recent tax law changes and inflation adjustments continue to affect planning for high earners, from income tax rates and retirement rules to estate planning and deduction limits. The 2025 legislation reshaped the planning landscape for high earners, from permanent TCJA rates to a $15 million estate exemption and a higher SALT cap. Todd Stankiewicz of SYKON Capital explains which planning conversations may still carry urgency and which ones are more appropriately evaluated under current law and future uncertainty.

For high-income earners, 2026 remains an important year for tax planning with the passing of the One Big Beautiful Bill Act, but the right next step depends less on headlines and more on how current law applies to your specific circumstances.

The legislation made the individual income tax rates from the 2017 Tax Cuts and Jobs Act permanent. In practice, that means reviewing current income tax brackets, estate and gift planning thresholds, retirement distribution rules, and deduction limitations under the law in effect at the time decisions are being made. In some years, the urgency around acting before a scheduled sunset provision is high. In others, the better approach is to build a plan around current law while remaining flexible if legislation changes again. (Source: Tax Cuts and Jobs Act, Pub. L. 115-97; H.R.1, 119th Congress)

Estate and gift tax exemptions was raised to $15 million per a person starting in 2026 and indexed for infaltion, which may create planning opportunities for some families around gifting, trust design, and long-term wealth transfer. State and local tax deduction limits also continue to matter for households in higher-tax states. The SALT deduction cap was also raised to $40,000 for 2025 through 2029 (subject to income limitations), which is directly relevant for clients in high-tax states Because those rules can change and their impact varies widely by household, I generally think they should be modeled rather than discussed in broad terms. (Source: IRS.gov; H.R.1, 119th Congress) (Source: IRS.gov; H.R.1, 119th Congress)

Layered on top of that, SECURE 2.0 continues to influence retirement planning. Required minimum distribution ages have changed, Roth 401(k) accounts are no longer subject to lifetime RMDs for the original owner,1 and catch-up contribution rules have evolved. Many financial plans benefit from being reviewed against those updates, especially when retirement income timing is part of the decision.

Our approach is to build around current law while stress-testing against realistic future scenarios. As an Enrolled Agent, I can model many of these issues across a client's tax return so the decision is based more on numbers and timing than on generalized assumptions.


About Author

Todd Stankiewicz | Chief Investment Officer, SYKON Capital

Todd Stankiewicz is the Chief Investment Officer of SYKON Capital, a fee-based registered investment advisor with offices in Westchester County, NY and Jupiter, FL. He is a recurring guest on Fox Business and the Schwab Network, where he discusses markets, portfolio strategy, and investor behavior. Todd is also the portfolio manager of the Free Markets ETF (FMKT).

Learn more at www.sykoncapital.com


^{Disclosure
Advisory Services offered through SYKON Capital LLC, a registered investment advisor with the U.S. Securities and Exchange Commission. This material is intended for informational purposes only. It should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor. The information contained in this presentation has been compiled from third party sources and is believed to be reliable as of the date of this report. Past performance is not indicative of future returns and diversification neither assures a profit nor guarantees against loss in a declining market. Investments involve risk and are not guaranteed.}