Podcast Summary

Podcast: Money Guy Show

Hosts: Brian Preston & Bo Hanson
Episode: Tax Updates You Can’t Afford to Miss
Date: November 19, 2025

Overview

In this actionable, information-packed episode, Brian and Bo break down the latest IRS tax and retirement account updates, including 2026 contribution limits, deductions, and recently passed tax legislation. The hosts clarify how these changes affect savers, investors, and families, peppering the show with practical tips, real-world stories, and audience Q&A. If you’re looking to optimize your 2026 financial strategy and stay ahead of the tax curve, this is a must-listen.

Key Discussion Points & Insights

The Importance of Tax Update Season

• Brian’s annual tradition: November is exciting for financial professionals because it’s when the IRS releases next year’s tax updates.
• Nerdy excitement: “I get excited because every November the government tells us what are the changes they’ve made to all of our contribution limits, our tax brackets...” – Brian Preston [01:28]

2026 Contribution Limits: What's Changed?

401(k), 403(b), 457, and Thrift Savings Plan

• Employee deferral limit:
  • 2025: $23,500
  • 2026: $24,500 (+$1,000)
• Total contribution limit (employee + employer):
  • 2025: $70,000
  • 2026: $72,000 (+$2,000)
• Catch-up for ages 50+:
  • 2025: $7,500
  • 2026: $8,000 (+$500)
• Super catch-up (ages 60-63): $11,250 (unchanged)
• Highly compensated employees: New rules often require catch-ups to be Roth contributions; check with HR/payroll [03:04].

IRAs

• Traditional & Roth IRA:
  • 2025: $7,000
  • 2026: $7,500
• IRA catch-up (ages 50+): $1,100 for 2026 (odd $100 increment noted)
• SEP IRA: Contribution increased to $72,000
• SIMPLE IRA: Salary deferral up to $17,000, catch-up up to $4,000, super catch-up (ages 60-63) remains $5,250

HSA & Health Accounts

• HSA Individual:
  • 2025: $4,300
  • 2026: $4,400
• HSA Family:
  • 2025: $8,550
  • 2026: $8,750
• HSA catch-up (ages 55+): $1,000 per eligible spouse [07:05]
• Flexible Spending Accounts (FSA):
  • 2025: $3,300
  • 2026: $3,400

529 Plans & ABLE Accounts

• No changes: Both remain at $19,000

“Just because these numbers have increased does not mean you will automatically max them out… Make sure you're checking that so you don't leave that tax deferred savings on the table.” — Bo Hanson [03:38]

Tax Bracket Adjustments & Standard Deduction Changes

• Marginal brackets shifted for inflation.
  • Example: 10% for up to $25,000 married filing jointly; 37% tops out at income above $768,000 [07:50]
• Standard deduction 2026:
  • Single/Married Filing Separately: $16,100
  • Married Filing Jointly: $32,200
  • Head of Household: $24,150

"The vast majority of Americans are likely still going to be standard deductors." — Bo Hanson [08:59]

Major Policy & Tax Law Updates: What’s on the Horizon

Key Legislative Changes (2025–2028 & Beyond):

• Senior Deduction Increase: Up to $6,000/individual, $12,000/couple [10:38]
• SALT Deduction: Raised from $10,000 to $40,000 for state/local taxes — major for high-tax states [10:45]
• Tax on Tips & Overtime: Deduct up to $25,000 tips or $12,500 single/$25,000 joint and certain overtime [11:15]
• Car Interest Deduction: Up to $10,000, but car must be U.S.-assembled for personal use [12:10]
• Child Tax Credit: Raised to $2,200/child (inflation-adjusted annually after 2026), more refundable [13:14]
• 529 Plans: Expanded eligible expenses include professional licenses, apprenticeships, and supplies [13:14]
• Child & Dependent Care Credit Expansion: Up to 50% credit for $3,000 child expenses per child, $6,000 total [13:39]
• Front-Page Charitable Deduction: $1,000 ($2,000 married) for charitable giving even for standard deductors [14:41]
• Child IRAs/“Trump Accounts”: Caution on tax treatment—still worth claiming the match, but taxed like regular IRAs [15:20]

“Once that happens, there are some other things you can go look at like health care expenses, other miscellaneous expenses...” — Bo Hanson on itemized deductions amid SALT changes [11:15]

Practical Tax Planning Advice

• Be proactive:
  “Tax avoidance is highly encouraged… do your homework so that we don’t have to pay any more tax than we absolutely must.” — Bo Hanson [16:23]

• Review with each change:
  “If you’re willing to do a little bit of homework, a little bit extra work to make sure you structure your financial life in a way to minimize your taxes, that’s more dollars in your army of dollar bills that can grow for the future.” — Bo Hanson [16:23]

Memorable Quotes & Fun Moments

• On Roth catch-ups:
  “Oh no, don't let me do more Roth. OK, we'll get more Roth assets.” — Brian Preston [03:27]

• On quirky IRS adjustments:
  “For some reason they made this year's catch up contributions in 2026 will be $1,100. That's right. They added $100 to those catch up contributions.” — Brian Preston [04:35]

• On complex tax law:
  “It's almost like the CPAs sit around and make it super CPAs.” — Bo Hanson [10:01]

• On home improvement and happiness:
  “There is no point in getting all the way to the end of this life with a big stack of money and no memories...” — Bo Hanson [44:38]

Audience Q&A Highlights

[18:06] Celebrating a $1 Million Net Worth at 38

• Advice: Take time to celebrate (e.g., trip, dinner). Reflect with your spouse on “remember whens,” set new goals rooted in your “why.”
• Building to $2 Million: “Don’t forget to dance with the one that brung you.” The same steady behaviors will often get you to the next milestone. Beware complexity for its own sake.

[24:54] Should I Decrease Retirement Investing to Pay Off My Spouse’s $4K, 8.5% Debt?

• Advice: High interest debt should be knocked out quickly, possibly using emergency fund reserves. After marriage, set goals together as a unit to avoid “my stuff vs. your stuff” mindset.

[34:13] Lump Sum or Dollar Cost Averaging ($20K in HSA)?

• Goldilocks Rule:
  • If $20K is less than 10% of your investable assets, lump sum.
  • If more significant, DCA over 6 months for volatility smoothing.
• HSAs are underused: Only 13% utilize the full triple-tax advantage.

[39:48] Remodel with Home Equity Loan vs. Move?

• Consider: Home equity loans are (currently) at higher variable rates; payback timeline should reflect whether improvement is for personal use vs. value-adding.
• Emotional value matters: “If this is the place you’re going to have your family… money is nothing more than a tool.” — Bo Hanson [44:41]

[54:32] How to Rebalance from 97% Equities at Age 37?

• Depends on:
  • Portfolio size
  • Account structure (tax-advantaged vs. taxable)
  • Tax implications
  • Time horizon and goals
  • Diversification (index funds vs. concentrated stocks)
• **Consider gradual changes via new investments if positions are in taxable accounts to avoid unnecessary tax hits.

Notable Timestamped Quotes

• [01:28] “Now every November I get excited… the government tells us what are the changes they’ve made to all of our contribution limits, our tax brackets.” — Brian Preston
• [03:27] “Oh no, don't let me do more Roth. OK, we'll get more Roth assets.” — Brian Preston
• [08:59] "The vast majority of Americans are likely still going to be standard deductors." — Bo Hanson
• [16:23] “Tax avoidance, however, is highly encouraged. One of the best ways we can avoid taxes is understanding what has changed…” — Bo Hanson
• [44:38] “There is no point in getting all the way to the end of this life with a big stack of money and no memories…” — Bo Hanson

Summary Table: 2026 Key Contribution Limits

| Account Type | 2025 Limit | 2026 Limit | Catch-Up (50+) | |----------------------|---------------|-----------------|----------------------| | 401(k)/403(b)/457/ TSP | $23,500 | $24,500 | $8,000 | | Total 401(k) Contrib | $70,000 | $72,000 | - | | IRA (Trad./Roth) | $7,000 | $7,500 | $1,100 | | HSA (Individual) | $4,300 | $4,400 | $1,000 (age 55+) | | HSA (Family) | $8,550 | $8,750 | $1,000 (per spouse) | | FSA | $3,300 | $3,400 | - |

The “Why” Behind the Financial Order of Operations (FOO)

When asked what makes their methodology (the "FOO") unique, Brian and Bo highlight its roots in real-life experience and prioritization:

• Inspired by math’s order of operations (PEMDAS), helping people avoid costly errors in financial decision sequencing.
• Step 1: Cover highest insurance deductibles (prevents catastrophes).
• Always capture “free money” (employer match) ASAP.

"I get so mad that... nobody was prioritizing get the free money from your 401k..." — Brian Preston [48:04]

Closing Thoughts

Brian and Bo remind listeners to stay proactive, adapt strategies to legislative changes, and revisit plans annually. The episode is not just a data dump, but a motivational call to approach money as both a math problem AND a tool for a richer life—using tax updates as an invitation to up your game.

Useful Links

• Full contribution limit tables and calculators: moneyguy.com/resources
• Contact the Money Guy team: moneyguy.com -> Become a Client
• Livestream Q&A: Tuesdays, 10am Central, YouTube and Spotify

This summary omits ad reads, intros, outros, and focuses strictly on content and Q&A.