A Pro Move for your 2026 Taxes and Retirement Strategy
Here we are in February, and I am knee-deep in Oakland marathon training. Oh, and taxes. I wanted to highlight two topics in this monthly email: when you can expect the most common tax forms and one new rule for 2026 that impacts a lot of you.
The Waiting Game: When will your forms arrive?
W-2, 1099-R, and 1099-NEC: These are usually issued by January 31.
1099-INT/DIV for non-retirement accounts: Most are sent by January 31, but brokerage firms (like Schwab, Fidelity, or Vanguard) often issue "Consolidated” 1099s in mid-to-late February. A Consolidated 1099 combines income such as interest, dividends, and investment sales into one document.
1099-B (Investment Sales): If not included on a Consolidated 1099, these forms are often the last to arrive, sometimes showing up in late February or even early March if there are complex cost-basis adjustments. You may also sometimes receive a “Corrected” Consolidated 1099, so if something looks off, be on the lookout for a corrected version.
Schedule K-1: Some of you may receive income that is reported on a K-1. These are also issued very late in the season, and most recipients of K-1s usually extend their tax returns to the October 15 filing date for this very reason.
Pro Move: Avoid the hassle of filing an amended return by making sure you have received every necessary tax form before submitting your return. Patience here is key.
Keep in mind that this list is not comprehensive; it only includes the most common forms. You may receive others specific to your situation.
New in 2026: The Catch-Up Contribution Rule
There is a significant change starting this year (thanks to the SECURE 2.0 Act) regarding how some of you contribute to your 401(k) or 403(b).
The Rule: If you are age 50 or older in 2026 and your wages from your employer exceeded $150,000 in 2025, any catch-up contributions you make this year must be made to a Roth (after-tax) account. You can no longer make these specific extra contributions on a pre-tax basis.
Why this matters for you:
Action Item: Check your payroll settings. If you usually set your catch-up to pre-tax, your plan administrator might automatically switch it to Roth, or in some cases, stop the contribution entirely if a Roth option isn't set up.
My Recommendation: By all means, continue to contribute regardless of this new rule. While losing the immediate tax deduction may not feel great, having a tax-free bucket of money for retirement is still a good thing, even if it wasn't your first choice.
Take Action
When preparing your taxes, whether on your own or with a professional tax preparer, remember to inquire about any prior-year contributions you may be eligible to make to your IRAs and/or Health Savings Account (HSA). It's easy to overlook maximizing these accounts, which means potentially missing out on valuable tax deductions that could reduce your overall tax liability.
I'm always available to help you understand your taxes, review beneficial strategies, and explain how my recommendations impact your return. Gaining a basic understanding of your own taxes is a huge step in navigating this complex jigsaw puzzle.
Talk soon,
Krystal
PS: What am I reading this month? (Well, I actually read this a few months ago, but it seems totally relevant. )