Your 2026 Financial Planning Updates + Free Guide!
Happy New Year! I hope you had a great holiday season.
As we kick off 2026, there are some important financial changes you'll want to know about - especially if you own a practice, are working on paying down student loans, or are planning for retirement.
Rather than overwhelm you with every single tax code update, I've pulled together the ones that tend to matter most for optometrists.
And to make your life easier, I've put everything into a free 2026 Financial & Tax Planning Guide.
Download your free guide here →
It includes the major updates from the One Big Beautiful Bill - new tax brackets, updated standard deductions, State and Local Tax deduction phaseouts, and more - on two easy-to-read pages.
The Updates Worth Your Attention
1. Retirement Account Contribution Limits Are Up
If you're maxing out your 401(k), SIMPLE IRA, or HSA, now's the time to update your payroll contributions for the year.
For 2026:
- 401(k) employee contributions: $24,500 (plus catch-up contributions if you're 50+)
- Special catch-up bump: If you're between ages 60-63, you get an extra $11,250 instead of the usual $8,000
- Total 401(k) limit (all sources): $72,000 (before catch-up)
- SIMPLE IRA employee contributions: $17,000 ($18,100 if you're eligible for the 10% increase). Also a $4,000 catch up if 50+, and a special higher catch up if ages 60-63.
- Traditional/Roth IRAs: $7,500 each, $8,600 if 50+
- Health Savings Account: $4,400 if on single plan, $8,750 for family
If you want to max out your plan at work, divide the annual limit by your number of paychecks and adjust your deferral percentage accordingly.
2. Expanded QBI Deduction Phaseout for Practice Owners
If you own your practice or work as a 1099 contractor, there's good news on the Qualified Business Income (QBI) deduction front.
Starting in 2026, the income thresholds where this 20% deduction starts to phase out have expanded:
- Married filing jointly: An extra $50,000 of breathing room
- Single filers: An extra $25,000
This gives you a bit of a longer runway for tax planning before you start losing access to this valuable deduction.
Also on the horizon: Trump accounts are expected to launch mid-2026. Think of them as a traditional IRA for minors, without the deduction when you add money to it. Not a game-changer for most, but worth knowing about if you have kids.
3. Student Loan Planning Continues to Shift
If you're working on paying down federal student loans, last year's One Big Beautiful Bill Act created some important dates to keep on your radar this year.
The new RAP plan (replacing SAVE) is expected to launch in July 2026. For current ODs, you'll still have access to Income-Based Repayment (IBR) and PAYE for now, but you'll need to choose between IBR or RAP sometime before July 2028.
Here's the critical date: July 1, 2026. If you take out any new federal loans or consolidate your existing loans on or after this date, you'll lose access to IBR and PAYE - leaving you with only RAP or standard repayment plans.
Two big cautions on consolidation:
- For 20- or 25-year forgiveness, you may lose your progress toward forgiveness (the weighted average credit rule went away with SAVE). PSLF is still safe here.
- Consolidating near or after July 1st eliminates your IBR/PAYE options
If you need to consolidate for a specific purpose, get it done early in the year so the process doesn't drag past that July deadline. And if you're still in optometry school? You're entering a different planning landscape than ODs who graduated before you.
The good news: All the same planning strategies still work: lowering your AGI through deductions and retirement contributions and potentially filing taxes separately if married - especially in community property states.
4. Health Insurance Changes (Two Big Ones)
First, the ACA premium tax credit rules are reverting to pre-COVID guidelines. That hard income cliff at 400% of the federal poverty line is back, which means careful tax planning matters even more if you're:
- Cold-starting or just purchased a practice (and have lower taxable income)
- Planning for early retirement years
Of course, it's possible that Congress acts to extend the current credits. Just this week, the House passed a a bill that extends the current credits for three years. While this has a long way to go until it's law, it's something to keep an eye on.
Second - and this is a good one - any Bronze or Catastrophic ACA plan now automatically qualifies as HSA-eligible.
Before, you were limited to high-deductible health plans with specific requirements. Now you have more options to pair with an HSA, which is basically a stealth retirement account for healthcare expenses.
5. Roth-Only Catch-Up Contributions for High Earners
Here's one to watch if you're 50 or older and earned more than $150,000 in W-2 wages last year:
Your 401(k) catch-up contributions must now be made as Roth contributions (after-tax), not pre-tax. This could be a smart move for many ODs, but it does mean your catch-up won't help lower your taxable income this year.
Keep in mind it's based on last year's wages from the same employer.
Make sure your 401(k) plan allows Roth contributions - if not, you won't be able to make catch-up contributions. Most do at this point, but it's worth confirming with your plan administrator.
Don't Keep All This in Your Head
Look, you don't need to memorize every number and threshold change. That's what the 2026 Financial & Tax Planning Guide is for.
Use it as your reference throughout the year—whether you're updating contributions, reviewing health insurance options, or preparing for a conversation with your CPA.
Grab your free guide here →
And as always, if you'd like help thinking through how any of these updates affect your specific situation, you can schedule a no-pressure introductory call. We work with optometrists across the country on exactly these kinds of decisions.
Here's to a financially smart 2026,
Evon Mendrin, CFP®, CSLP®
Optometry Wealth Advisors
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Podcast Ep. 149: Five Key Financial and Tax Changes for Optometrists
I dive deeper into 5 key updates ODs need to know for 2026.
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Matt Ruttenberg and I demystify how to make the most of profit sharing in your 401(k) plan.
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