Finalization of the One Big Beautiful Bill Act (OBBBA) on Independence Day (2025) created a rare opportunity for Tax Planning, as next year’s rules were laid out in advance. Generally, Congress delays several important decisions until late December, leaving financial planners and tax professionals scrambling to assist clients with their optimal path to reducing taxes. Score one for taxpayers everywhere, for now anyway.

Then some other stuff happened. Excessively fractious politics in Washington, D.C. resulted in a partial government shutdown. While that is nothing new, the duration of this conflict has already surpassed the old 35-day record. As of this writing, there is finally a glimmer of hope for a solution, as the Senate broke the filibuster during a long weekend session. That should pave the way for final votes in both the Senate and the House. President Trump has indicated that he would be willing to sign this Bill if passed.

Failure of elected officials to reach a budgetary compromise has left the country with decision paralysis. Data releases, which generally drive action in Congress, have been deferred, resulting in long postponements to necessary planning announcements. While we do have definitive items such as the (paltry 2.8%) January 1 Social Security COLA, as well as 2026 Income Tax Brackets, we have yet to be informed about many pertinent details. As financial advisors, our apparent “head start” on 2025/26 tax planning has been suspended.

The irony is not lost on us.

Glaring omissions from relevant information include 2026 contribution limits to company-sponsored Retirement Accounts, encompassing 401(k), 403(b), 457, and others. Most Plan participants would like to adjust their salary deferral contributions beginning January 1, and new rules for highly compensated employees will affect tax deductibility due to changes in the “catch-up contribution.”

IRA owners are also awaiting 2026 contribution limits, but have more flexibility, due to contribution dates that extend through tax filing day of the following year. Even so, we’d like to know in advance what those limits will be, so that we can plan for tax withholding and/or Quarterly Tax Deposits (Forms 1040-ES).

Significant announcements will be available shortly after the shutdown ends, which will hopefully be soon. As 2026 provisions are announced, we will report them in this Blog.

From the data released so far, 2026 does not appear to be shaping up to be an unusually taxpayer-friendly year. OBBBA prevented the expiration of the Tax Cuts and Jobs Act of 2017 (TCJA), and for that, we can all breathe easier. However, as the old expression goes, The Devil is in the details.” As we learn more details, you’ll be the next to know.