Jon Webber Jr - Financial Advisor

When the One Big Beautiful Bill (OBBB) Act was passed on July 4, the legislation left several unanswered questions that the IRS is now addressing. The IRS undergoes this process every year, but this time around, the OBBB has added to the uncertainty. Here’s what the 2026 Federal income tax brackets will look like.

Roth IRA conversions have long been used to manage future taxes, but the new state and local tax (SALT) deduction rules may add wrinkles for higher earners.

The new law raised the SALT deduction cap from $10,000 to $40,000 in 2025. However, once income exceeds $500,000, the benefit starts to phase out, shrinking back to $10,000 at $600,000.

Because Roth conversions add taxable income in the year they’re made, some households could see their eligibility for the larger SALT deduction reduced.

It’s a reminder that tax strategies often have overlapping effects—and one move may influence another.


Source:

How Roth conversions could slash Trump's $40,000 'SALT' deduction for high earners Trump's "big beautiful bill" increased the SALT deduction cap to $40,000. But Roth conversions could threaten the tax break for higher earners.

Healthcare costs for seniors continue to climb, averaging more than $7,000 annually, even with Medicare coverage. Many turn to Medigap supplemental plans to bridge the gap, but switching plans later can be difficult due to medical underwriting.

That’s where the Medigap birthday rule comes in. In about 18 states, this rule lets beneficiaries change to another Medigap plan of equal or lesser value each year during a window tied to their birthday, without facing new health screenings.

Examples include:
➡️California: 60-day window to switch to any plan with equal or lesser benefits.
➡️Oregon: 30-day window to switch to a plan of equal or lesser value.
➡️Idaho: 63-day window after birthdays to make changes.

While not available nationwide, the rule offers eligible seniors flexibility and potential savings. Understanding state-specific provisions can help Medicare beneficiaries make the most of their options.


Source:

What is the Medigap birthday rule and how does it impact seniors? This little-known rule tied to your birthday could help you switch your Medigap plans with fewer barriers.