4 Moves Retirees Need To Make Now To Prepare for 2026 Tax Rules

Tax Law Changes - The One Big Beautiful Bill Act (OBBBA) allows individual filers aged 65 and older to claim an additional $6,000 tax deduction, while married couples filing jointly can claim up to $12,000, in addition to the standard deduction [2] - Starting in 2025 and continuing through 2028, taxpayers over 65 can convert $12,000 from pre-tax IRAs into tax-free Roth IRAs without incurring taxes, potentially creating a $48,000 Roth IRA if done annually [3] Income Tax Brackets - The IRS has released the 2026 marginal tax rates, with the highest bracket remaining at 37% for individual taxpayers earning $640,600 and $768,700 for married couples filing jointly [4] - The tax brackets for 2026 are as follows: 35% for income over $256,225 ($512,450 for married couples), 32% for income over $201,775 ($403,550 for married couples), 24% for income over $105,700 ($211,400 for married couples), 22% for income over $50,400 ($100,800 for married couples), 12% for income over $12,400 ($24,800 for married couples), and 10% for income of $12,400 or less ($24,800 for married couples) [5] Retirement Planning - It is crucial for taxpayers to understand their tax brackets to avoid withdrawing excessive amounts from IRAs, which could push them into higher tax brackets, thereby increasing their tax liabilities [5]