The force of the earth's gravity stays about the same each year. So does the moon's gravity, and so does the sun's.
The tax parameters that shape how clients' life insurance, annuities, long-term care insurance and other arrangements change every year.
The Internal Revenue Service publishes updates to the figures that transmit the forces of IRS financial physics in several batches that come out throughout the year.
The IRS posted one batch, which will shape how arrangements like estate taxes, gift taxes and long-term care insurance will work in 2026, last week in spite of the impact of the government shutdown.
For a look at 12 of the new IRS numbers that will help determine what goes up, what goes down, and how fast, see the gallery accompanying this article.
What it means: In theory, the new tax parameters could help clients squeeze more value out of the dollars spent on preparing for the future.
Jesse Slome, director emeritus of the American Association for Long-Term Care Insurance, warned via email that the propulsive force of federal income tax rules often collides with the inertial force of client confusion.
“The tax deductibility of tax-qualified long-term care insurance premiums is an incredible benefit potentially for many aging Americans,” Slome said.
But few people know that some LTCI buyers can deduct the premium payments from their taxable income, he said.
The bottom line: For income tax incentives to work properly, someone has to tell clients about them.
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