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12 min read

ABLE Accounts in 2026: How Section 529A Lets People With Disabilities Save $19,000 a Year Tax-Free Without Losing SSI or Medicaid

A 2026 guide to ABLE accounts under IRC Section 529A — the new age-46 eligibility cutoff that makes 6 million more Americans (including 1 million veterans) eligible, the $19,000 annual contribution cap, the $100,000 SSI shelter, the unlimited Medicaid shelter, qualified disability expenses, the ABLE to Work multiplier up to $34,650, and how to avoid Medicaid clawback at death.

Mike Thrift

taxtax-planningpersonal-finance
11 min read

The Mega Backdoor Roth Playbook: How High Earners Can Funnel an Extra $47,500 Into Tax-Free Retirement Accounts in 2026

The mega backdoor Roth routes up to $47,500 of after-tax 401(k) contributions into a Roth bucket for 2026, on top of the standard $24,500 employee deferral, by converting after-tax dollars through an in-plan Roth conversion or in-service distribution to a Roth IRA. The IRS Section 415(c) total cap of $72,000 ($80,000 if age 50+) covers contributions from all sources combined, and converting promptly keeps the taxable earnings drag near zero.

Mike Thrift

retirement-plansretirement-savingstax-planning
11 min read

Section 457(b) and 457(f) Deferred Compensation Plans: How Nonprofit, Government, and School Employees Stack Pre-Tax Savings on Top of a 403(b) or 401(k)

A detailed 2026 guide to Section 457(b) and 457(f) deferred compensation plans — how public-sector and nonprofit employees can stack a 457(b) on top of a 403(b) or 401(k) for up to $65,000 in deferrals, when the special three-year catch-up reaches $49,000, and how 457(f) vesting can trigger a tax bomb under Section 409A.

Mike Thrift

retirement-plansretirement-savingstax-planning
14 min read

Generation-Skipping Transfer Tax in 2026: How Grandparents Move Wealth to Grandchildren Without Paying Estate Tax Twice

For 2026 the One Big Beautiful Bill Act sets the GST exemption at $15 million per person ($30 million per couple), with a flat 40 percent rate on transfers to skip persons; this guide covers skip-person rules, direct skips, taxable terminations, automatic versus elective exemption allocation, and how dynasty trusts achieve a zero inclusion ratio.

Mike Thrift

taxtax-planningestate-planning
14 min read

Section 7702 and the Modified Endowment Contract Trap: How Overfunding Cash-Value Life Insurance Triggers LIFO Taxation and a 10% Penalty

Section 7702A's 7-pay test reclassifies overfunded cash-value life insurance as a modified endowment contract, switching lifetime distributions to LIFO ordering, taxing policy loans as ordinary income, and adding a 10% penalty before age 59½. The classification is permanent and cannot be reversed after the 60-day refund window.

Mike Thrift

insurancetax-planningestate-planning
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