The Securities and Exchange Commission's Division of Examinations has released its priorities for 2026, with a focus on compliance with fiduciary standards, cybersecurity, emerging technology, financial responsibility and investor protection. Amid resource constraints, the agency said it will prioritize recently registered advisors, as well as firms that have never been examined.

The recently passed tax and spending legislation increases the state and local tax deduction cap from $10,000 to $40,000 for tax years 2025 through 2029, providing relief for many taxpayers. However, the new structure introduces a phase-down and sharper benefit cliff for high earners. States now face critical decisions on whether to conform their tax codes to the new federal SALT deduction changes or decouple and set their own rules, potentially adding more complexity for taxpayers and advisors as they navigate deduction limits and eligibility.

Richmond Federal Reserve President Thomas Barkin emphasized the importance of upcoming economic data in guiding the central bank's decisions at its December meeting, noting the challenge of assessing inflation and unemployment without official statistics following a federal shutdown.

Financial advisors are adjusting their year-end planning efforts in response to robust year-to-date stock market gains and evolving tax legislation. They stress the importance of portfolio diversification, estate planning, balance sheet readiness and cash flow predictability. "This is a great time to assess each family's objectives, ensure we are up to date on any estate tax exemptions a family may still have, and prepare for year-end charitable gifts," says Caprock's Ryan Singer.

While 529 accounts are popular for college savings, Ed Slott and Jeff Levine argue that Roth IRAs can be more advantageous in some cases. Withdrawals from Roth IRAs are tax- and penalty-free if the account holder is 59 1/2 and has held the account for at least five years, and contributions can be withdrawn at any time without taxes or penalties. The SECURE 2.0 retirement legislation package allows 529 beneficiaries to roll over funds to Roth IRAs under certain conditions, which they note adds flexibility to college savings strategies.

Estate attorney Leslie Bohner notes that while many families focus on legal documents and tax strategies during estate planning, they often overlook the importance of preparing heirs to manage this wealth. Bohner recommends proactive steps such as lifetime gifting, involving heirs in philanthropic decisions, and regular family meetings to ensure heirs are financially literate and aligned with family values.

Americans are losing billions in investment gains as more 401(k) accounts are left behind when workers switch jobs. Employers are increasingly transferring small balances to IRAs, which often remain in cash. These involuntary rollovers have become more common with automatic enrollment and recent legislation.