Arthur Arsenault

08/24/2026

Wondering how Sec. 530A accounts (also known as Trump Accounts) may be invested? The IRS has issued proposed regulations clarifying the investment options allowed during the “growth period.” This period begins when the beneficiary’s initial account is established and ends on Dec. 31 of the year the child turns 17. During this time, eligible investments generally include mutual funds or exchange-traded funds that track an equity index of mainly U.S. companies, don’t use leverage, and have annual fees and expenses of no more than 0.1% of the fund’s balance. The proposed regulations would apply to tax years starting on or after Jan. 1, 2026. Contact us with questions.

08/22/2026

If you’re considering gifts to family members in a lower tax bracket, giving long-term appreciated stock rather than cash can offer valuable tax savings. You may be able to eliminate federal income tax on the capital gains if the loved one is in the 0% tax bracket for long-term gains. The recipient can potentially sell the stock tax-free. But the 0% rate applies only until the gains fill up the gap between the recipient’s taxable income and the top of the 0% bracket. Before acting, make sure the recipient won’t be subject to the “kiddie tax” and consider gift and generation-skipping transfer tax consequences. We can answer any questions and suggest other ways to reduce taxes on investments.

08/21/2026

The IRS has issued new guidance to simplify and standardize retirement account rollovers for both participants and plan sponsors, as required under the SECURE 2.0 Act of 2022. Notice 2026-49 provides optional sample forms and proposed procedures for rollovers between retirement plans or between a retirement plan and an IRA. The guidance doesn’t apply to IRA-to-IRA transfers. The forms are designed to protect personal information and reduce the burden on participants while making the process easier for plan sponsors. The use of the sample forms and procedures is optional. The deadline for public comment is Oct. 23, 2026. We’re here if you need assistance.

08/14/2026

A new bill in the U.S. House would enable philanthropic organizations and states to make unlimited contributions to Sec. 530A accounts (also known as Trump accounts) on behalf of children in foster care. Currently, most 530A accounts aren’t eligible to receive unlimited contributions. If passed and signed into law, the Foster Youth Investment Act would create a new qualified class of children under state or tribal government guardianship. In June 2026, the Treasury Dept. authorized child welfare agencies to open 530A accounts for children in their care. Allowing unlimited contributions is considered the next phase in a larger goal to provide foster youth with greater financial security.

07/05/2026

Contributions to Section 530A accounts (also known as Trump Accounts) are now eligible for the gift tax annual exclusion. If, for example, you contribute cash (including via check or EFT) to a child or grandchild’s account, that contribution won’t be subject to the federal gift tax or related reporting requirements, as long as your total gifts to the child for the year don’t exceed $19,000. Note that contributions from most sources are limited to $5,000 per year (not including the initial federal government contribution of $1,000 if the child qualifies), per Section 530A account. Also, the recipient must be under age 18 at the end of the tax year. Have questions? Contact us.

07/04/2026

07/02/2026

Treasury Secretary Scott Bessent has announced plans to allow child welfare agencies to elect to open Section 530A accounts (also known as “Trump Accounts”) for children in foster care. The option is available when a state, territorial or tribal government agency is the legal guardian of a child with a Social Security number. A Sec. 530A account can be set up for any U.S. citizen who’ll be under age 18 at the end of the tax year and who has a Social Security number. Generally, annual contributions of up to $5,000 can be made until the year the beneficiary turns 18. Contributions aren’t deductible, but earnings grow tax-deferred as long as they’re in the account. Contact us for details.

06/09/2026

The IRS has issued guidance (Notice 2026-33) on qualified long-term care (LTC) distributions from defined contribution retirement plans, such as 401(k)s. If a plan permits, distributions made after Dec. 29, 2025, to pay LTC insurance premiums are exempt from the 10% early withdrawal penalty but included in gross income. Distributions are limited to the lesser of the insurance premium paid, 10% of the employee’s vested plan benefit or $2,600 (adjusted for inflation after 2026). The guidance also extends the deadline for plan administrators to amend plans to permit LTC distributions to Dec. 31, 2027.

05/05/2026

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04/22/2026

Estate planning is different these days. With a historically high gift and estate tax exemption, most families are unlikely to face federal gift or estate tax liability. This makes it critical to understand the income tax impact of asset transfers, including the stepped-up basis rules. Generally, for people inheriting appreciated assets (such as stock, real estate and business interests), the tax basis for calculating gain when the assets are sold is “stepped up” to their value on the deceased’s date of death. This can significantly reduce or eliminate capital gains tax for heirs, while lifetime gifts don’t get a stepped-up basis. Contact us for help crafting a tax-efficient estate plan.