The 210 Financial Blog

Tax season can be stressful and daunting, so many people don’t think about doing tax planning throughout the year. While there are pros and cons to both tax season and tax planning, the most important thing to remember is that taxes are not a one-time event that occurs just once a year.

Key Points – Why Filing Your Tax Return is Only the Beginning

1. Tax Season:
2. Tax Planning:
3. Conclusion:

Tax Season:

Many people see tax season as a daunting and unpleasant time, often comparing it to a big storm that builds up and is quickly forgotten once it’s over. However, this period is crucial, despite the added stress. While the season is brief and can feel overwhelming, it is an obligation that must be addressed.

Tax season typically runs from the end of January to April 15th. Although there are opportunities for extensions, many people dread this time. Nevertheless, it ultimately comes to an end. During this period, most individuals focus on finding ways to reduce their taxes, as they are required to consider them. It is natural to want to keep your hard-earned money in your pocket, but leaving this to the last minute is not a viable plan. Keeping proper records throughout the year and planning ahead can be beneficial when looking to lower your tax bill in the future.

It's important to stay informed about tax laws that are going into effect, such as the One Big Beautiful Bill Act and various federal tax changes. Understanding these changes and their impact on your taxes during tax season is essential, as any modifications to tax law could affect your overall tax burden and financial plan.

Learn More: 6 Tax Strategies to Consider this Tax Season

Tax Planning:

Tax planning on the other hand is an ongoing process that doesn’t end on April 15th (Tax Day). It requires an understanding of the broader landscape of taxes, rather than just focusing on the details. Neglecting tax planning throughout your lifetime could lead to missed opportunities for significant savings.

When considering tax planning, think about long-term strategies that will benefit you over the years. Taxes will continue to be a part of our lives, and the only variable is how much we will owe. Currently, we may be experiencing a period of relatively lower tax rates, even if it doesn't always feel that way.

Tax planning is closely linked to your financial plan and should complement it. It's important to recognize how taxes affect various aspects of your financial situation, including healthcare, income, and legacy planning. By anticipating taxes and employing strategic measures, you can keep more money in your pocket.

Some tax planning strategies include:

• Roth Conversion – A Roth conversion is the process of transferring your retirement savings from a traditional IRA or 401(k) to a Roth account while paying the taxes owed along the way. Although it may be challenging to pay your taxes now, Roth conversions allow you to remain in a lower tax bracket, as you pay taxes when rates are lower. Also, a great option if you wish to pass it along to your children, who typically, when they receive it, are in their highest tax bracket, you help save them on the taxes.
• Qualified Charitable Distributions or Charitable Giving – Donating to charity is fulfilling even without tax benefits; those are just a bonus. Qualified Charitable Distributions allow you to make a tax-free transfer from an IRA to a charity while still meeting your Required Minimum Distributions.

Strategic thinking is essential for effective tax planning and demands both time and a well-structured plan. Since every financial and tax situation is unique, develop a personalized plan that guides you through the complexities of tax planning. Remember, all elements of financial planning, including healthcare, legacy, investments, and income, are closely interconnected with tax planning. Therefore, ensure that everything is thoroughly planned and prepared for any circumstances.

Learn More: Planning for Taxes in Your Retirement Plan

Conclusion:

Both tax season and tax planning serve important purposes, but it's crucial not to stop planning for taxes once you've filed your return. Continue to plan and prepare throughout the year to approach tax situations with confidence. Having a plan in place will help you manage your taxes effectively, no matter the circumstances. If you don't have a tax plan yet, let's create one together!

Past performance is not indicative of future results. The material above has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed, and 210 Wealth Management, Inc., d/b/a 210 Financial makes no representation or warranty as to the accuracy or completeness of the information, which should not be used as the basis of any investment decision. Information contained on third party websites that 210 Financial may link to are not reviewed in their entirety for accuracy and 210 Financial assumes no liability for the information contained on these websites. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from 210 Financial. For more information about 210 Wealth Management, Inc., d/b/a 210 Financial, including our Form ADV brochures, please visit https://adviserinfo.sec.gov or contact us at (309)263-1333.

The 2026 tax season is upon us, and we are here to help highlight some common tax planning mistakes you might encounter. It’s important to plan your taxes strategically to effectively navigate the complexities of taxation. Below is a list of five common misconceptions that you may want to reconsider this tax season.

Key Points – 5 Tax Planning Mistakes We See Heading Into 2026

• Not, thinking about taxes over your lifetime
• Procrastinating planning and execution
• Ignoring changing tax laws
• Not developing an overall financial plan
• Not discussing taxes and tax planning with your financial advisor

Having a shortsighted view of taxes

Many people’s first question about taxes is, “How can I minimize my tax payment this year?” While most are understandably concerned about this, focusing solely on short-term savings can be shortsighted.

Instead, your goal should be to strategize how to reduce your tax burden over your lifetime. This consideration is particularly important for pre-retirees, as required minimum distributions (RMDs) will become part of their taxable income at age 73. Another strategy a retiree can use to alleviate taxes is through qualified charitable distributions, but careful planning is necessary to make this effective.

Learn More: 6 Strategies to Consider this Tax Season

Procrastinating Your Taxes:

Don't wait until the last minute. We understand the wait, especially if you are new to taxes or simply busy. Allowing yourself sufficient time to plan and execute effective tax strategies is essential. But waiting until the last minute can delay important strategies and even make you miss out. Procrastinating only hurts your situation and can put you out of the running for key tax strategies. Start having tax discussions soon, giving yourself and your financial advisor time to develop and implement effective tax strategies.

Learn More: 5 Last Minute Tax-Tips

Ignoring tax law changes:

In 2026, there are some changes taking effect due to the Big Beautiful Bill that was passed in 2025. It’s important to understand these changes and how they might affect your tax bill and plan.

Don’t forget about the One Big Beautiful Bill Act that went into effect last year, as it could influence your federal taxes this year. Many of the changes implemented under this act include expanded tax brackets, increased deductions, and new credits aimed at maximizing refunds for taxpayers.

Tax Changes Include:

• Increased 401(k) and 457 contribution limits for 2026
• New “super catch-up" contributions for ages 60-63
• Mandatory Roth catch-ups for high-income earners over 50
• Higher standard deductions and temporary senior tax breaks
• 2026 tax law changes may affect Roth conversions and RMD planning

Additionally, individuals aged 65 and older can benefit from a new deduction, which permits an extra $6,000 deduction on any income, including taxable Social Security income. It's important to note that some Social Security benefits are taxable, so be sure to double-check your tax obligations.

Tax policies can change with different administrations and other influencing factors, so it’s important to stay informed. This knowledge will help you make the best decisions for yourself and your family.

Learn More: 2026 Tax Law Updates – What Retirees Need to Know

https://www.youtube.com/watch?v=7HgLMa-yUqg

Not developing an overall financial plan:

You cannot have a tax plan without financial planning. Moreover, you need an overall financial plan to know where you are, which will help you get to where you want to go.

A financial plan covers many aspects of your finances, helping you build your retirement, as well as tax planning.

1. Income Planning – Keep in mind that your income is subject to taxes, and its sources will change in retirement. Creating a plan can help you strategize your taxes, potentially keeping them low throughout your life, not just once a year.
2. Investment Planning – Retirement accounts are a means of saving for your future retirement. Choosing the right account or opting for a Roth conversion can help you save money throughout your life. Roth retirement accounts are advantageous because they allow you to pay taxes on your contributions upfront, rather than when you are required to withdraw the funds later.
3. Healthcare Planning – You cannot create a complete financial plan without considering your healthcare options, particularly in retirement when they may change.
4. Legacy Planning & Insurance – Planning your legacy: what you will leave behind for your loved ones and how you can protect them after you pass.

Learn More: Step-by-Step Retirement Planning: How to Get Started

Not discussing taxes with the help of professionals

Utilize your resources, particularly professionals who are knowledgeable about taxes. Combining your personal tax knowledge with the expertise of a professional can give you a significant advantage. Professionals exist for a reason; take advantage of their services. They can help you understand your personal tax situation and develop strategies to reduce your overall tax bill.

Get personalized tax help by scheduling a 15-minute strategy call with a financial advisor.

https://210financial.com/schedule-a-meeting/

Conclusion:

Mistakes happen; they are a part of life. However, it's important to take the time now to avoid common tax planning mistakes that could impact your future. Consider consulting with a professional, creating detailed plans, examining taxes from all angles, and completing tasks promptly. We wish you the best this season and in all your future tax matters!

Past performance is not indicative of future results. The material above has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed, and 210 Wealth Management, Inc., d/b/a 210 Financial makes no representation or warranty as to the accuracy or completeness of the information, which should not be used as the basis of any investment decision. Information contained on third party websites that 210 Financial may link to are not reviewed in their entirety for accuracy and 210 Financial assumes no liability for the information contained on these websites. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from 210 Financial. For more information about 210 Wealth Management, Inc., d/b/a 210 Financial, including our Form ADV brochures, please visit https://adviserinfo.sec.gov or contact us at (309)263-1333.

Being a pre-retiree in 2026 is difficult to manage there are different rules and changing dynamics, especially since your parent’s retired. 2026 is proving to be a critical year for tax planning because of new changes that the administration brought on. Learn about the tax changes, be informed but remember that nothing is permanent, plan on that. We are here to help walk you through what these changes mean for your retirement and what you can do.

Key Points – Why 2026 Is a Critical Year for Tax Planning – Especially for Pre-Retirees

1. What’s Changing for Taxes in 2026:
2. Why Pre-Retiree's Are in a Unique Position:
3. Tax Planning Strategies to Consider:
4. Creating a Financial Plan:

What’s Changing for Taxes in 2026:

Tax laws change periodically, so it’s essential to stay informed about the updates that affect you and your financial plan. This year, the One Big Beautiful Bill Act has introduced several changes. Looking ahead to 2026, there will be additional changes that could directly impact your savings, tax payments, and retirement planning efficiency.

• Increased 401(k), 403(b), and 457 contribution limits for 2026
• New “super catch-up” contributions for ages 60–63
• Mandatory Roth catch-ups for high-income earners over 50
• Higher standard deductions and temporary senior tax breaks
• 2026 changes may affect Roth conversions and RMD planning

Learn More: 2026 Tax Law Updates – What Retirees Need to Know

https://www.youtube.com/watch?v=7HgLMa-yUqg

Why Pre-Retiree's Are in a Unique Position:

Pre-retirees are in a unique position when it comes to tax planning for retirement. During this stage, you are likely in your peak earning years, giving you the flexibility and opportunity to reposition your assets and take control of your retirement strategy. This is especially important to consider before Required Minimum Distributions (RMDs) begin and before you become fully reliant on your income and savings.

Learn More: Planning for Taxes in Your Retirement Plan

Tax Planning Strategies to Consider:

With the changes included in this tax season’s lineup, here are some strategies you can use to help lower your tax bill throughout your life. 

• Roth Conversions: A Roth conversion is the process of transferring your retirement savings from a traditional IRA or 401(k) to a Roth account while paying the taxes owed along the way. Although it may be challenging to pay your taxes now, Roth conversions allow you to remain in a lower tax bracket, as you pay taxes when rates are lower.
• Tax Bracket Management: Understanding your tax bracket rates and how they are impacted by your income is important to ensure that only the necessary amount falls into higher tax brackets. Additionally, contributing to your retirement accounts can help reduce your taxable income.
• Charitable Giving Strategies: Qualified Charitable Distributions allow you to make a tax-free transfer from an IRA to a charity while still meeting your Required Minimum Distributions.

Learn More: 6 Tax Strategies to Consider this Tax Season

Creating a Financial Plan:

Don't let your learning and planning for taxes end on April 15th. Start the conversation about how to save on taxes throughout your lifetime. Failing to have a plan or taking no action can result in a higher tax bracket and increased tax bills in retirement, which can significantly impact your hard-earned retirement savings.

Avoid retiring with uncertainty about your taxes and how they will affect your savings and income. Make a plan to help you navigate taxes and any changes that may arise. Build a plan that is sustainable and effective for the long term. Past performance is not indicative of future results. The material above has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed, and 210 Wealth Management, Inc., d/b/a 210 Financial makes no representation or warranty as to the accuracy or completeness of the information, which should not be used as the basis of any investment decision. Information contained on third party websites that 210 Financial may link to are not reviewed in their entirety for accuracy and 210 Financial assumes no liability for the information contained on these websites. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from 210 Financial. For more information about 210 Wealth Management, Inc., d/b/a 210 Financial, including our Form ADV brochures, please visit https://adviserinfo.sec.gov or contact us at (309)263-1333.