Garrett Menaker, CPA/PFS, CFP®

In the wake of the recent NFP ("Jobs") Report, which is based on survey data, we show Payroll Tax data, which based entirely on electronically collected actual deposits.

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Did you know that starting in 2026, if you're 50 or older with prior year wages over $150k, you must place catch-up contributions to a Roth IRA account? That’s a big change, and here are 5 things you need to know: 1️⃣ This applies to 401(k), 403(b), 457(b) plans. 2️⃣ When catch-up contributions are put into a Roth account, you pay taxes on that money today, but qualified withdrawals and earnings can be tax-free later if requirements are met. 3️⃣ The 2026 catch-up limit is $8,000 for 50+, and a “super catch-up” limit of $11,250 may apply for ages 60 to 63 if the plan allows. 4️⃣ Regular contributions can still be elected as traditional pre-tax or Roth when a plan offers both options, while catch-up contributions may be Roth-only for those who meet the wage threshold. 5️⃣ The threshold is based on wages from the year before, specifically prior year FICA wages, so 2025 wages determine 2026 treatment. The change eliminates what used to be a choice. For people with higher taxable income approaching retirement, this affects the approach to contribution timing and broader Roth conversion strategies. Let’s talk if you have questions about how this could impact you. Your tax, legal, or accounting professional may also have insights. Remember, with most retirement accounts, once you reach age 73, you must begin taking required minimum distributions. Roth accounts are the exception. Withdrawal penalties may apply if you take the money before age 59½. Roth IRA distributions must meet a 5-year holding requirement and occur after the account holder reaches age 59½. #Retirement #401K #Roth401K #WorkplaceBenefits #PersonalFinance #WealthManagement

Interesting article on private market assets entering 401(k) portfolios. Greater access sounds appealing—but will the supply of quality investments grow accordingly, and what happens to returns when exclusivity fades? #investments #privateassets #401k #pensions #pensionplan #retirement #investing ============================================ The push by asset managers and the Trump administration to include private markets in 401(k) plans could weigh on long-term returns for those asset classes. Americans’ 401(k) money as a new source of demand could be a downside risk for the long-term return outlook of private assets, even if it is a positive addition for those investors, said David Lebovitz, managing director and global strategist for multiasset solutions at J.P. Morgan Asset Management, at an Oct. 20 media event. Lebovitz compared the new source of demand to an increase in cars leading to traffic clogging up a highway. “I do think it will erode some of the return advantage that alternatives and private markets have provided historically, because you’re just going to have more people fishing in that pond,” Lebovitz said. Tim McGlinn, a former investment consultant at Gallagher who now writes about the private markets industry on his Substack blog TheAltView, agreed with the idea that new demand from 401(k) investors would hurt the return outlook. “It’s entirely logical that more money coming in without the investment opportunities expanding — and there’s no reason to think that the opportunity set would dramatically expand, we’re talking about new money coming in and a limited amount of assets — that would be the baseline expectation: lower returns,” McGlinn said. https://lnkd.in/eWvzAy6M

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If I see one more post or article about a "loophole" in the tax code that "allows you to save tens of thousands of dollars on your tax bill," that ends up being about Bonus Depreciation or a Section 179 Deduction, I am going to absolutely lose my mind. Now, don't get me wrong; for the right business owner in the right situation, these accelerated depreciation methods are pretty awesome. And it's entirely true that, compared to regular straight-line depreciation, electing to use Bonus depreciation and/or a Section 179 Deduction can lower your taxes in a meaningful way. But... First of all, these aren't loopholes. They're straightforward applications of the tax code being used exactly as intended. Second, almost none of these posts/articles mention that the increased tax deductions/lower taxes today come, all things equal, at the expense of lower tax deductions/higher taxes in the future. So, in many circumstances, accelerated depreciation is really more a time-value-of-money play than anything (which, of course, has value, but not AS much as getting a tax break that would otherwise never be available). Third, and most importantly, on their own, accelerated depreciation methods don't allow individuals to "save" anything, because to use them, they require the PURCHASE of a qualifying asset. The cost of buying that asset will exceed any potential tax savings from Bonus Depreciation/179 Deduction. In the end, accelerated depreciation methods are probably best thought of in a manner similar to that of a sale at the store. If you were planning to buy something already, or were on the fence, then the sale can make now a pretty compelling time to make your purchase. But if you weren't already thinking about the purchase, you probably shouldn't let the fact that it's on sale change your decision. I mean, even if I see cat food on sale for 90% off, I'm not buying it. I don't have a cat. Thank you for coming to my Ted Talk.

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Understanding the difference between tax planning and tax advice is crucial for advisors seeking to stay on the right side of this liability line. 1) Set expectations during meetings with a clear verbal preface explaining that tax advice falls outside the scope; and 2) Document the conversation to clarify what was discussed, explicitly note the absence of a formal recommendation, and reiterate the importance of consulting a qualified tax professional. https://kitc.es/3J5cc28 #advicers

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