In this episode of Protecting and Preserving Wealth, we dive into key updates around Qualified Charitable Distributions (QCDs) for 2026. QCDs allow individuals age 70½ and older to make direct charitable donations from their IRA accounts, and this episode is especially relevant for clients looking to manage taxes effectively while giving charitably.

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We begin by clarifying the age requirement. You must be exactly 70½ to make a QCD — not before, not even within the same tax year if you haven't reached that age yet. This often confuses clients, especially early in the year when they expect eligibility based solely on the calendar year. Importantly, you don’t need to be taking Required Minimum Distributions (RMDs) to utilize QCDs. Even if RMDs don’t kick in until 73 or 75, you can still make a QCD at 70½.

Another common question we addressed is whether inherited IRA beneficiaries can make QCDs. The answer is yes — as long as they are 70½. A QCD can satisfy RMDs from an inherited IRA, but the age rule still applies. For 2026, the annual QCD limit is $111,000 per person, meaning couples could potentially give up to $222,000.

We also discuss the mechanics. The distribution must be made directly from your IRA to the charity. You can’t take the money into your personal account and then donate it — doing so disqualifies the distribution from being a QCD. Additionally, you cannot direct a QCD to a donor-advised fund or receive any benefit (like a charity dinner ticket) in return. The transaction must be completely tax-neutral — for both you and the charity.

We emphasize that QCDs must be made in cash; donations in-kind (like appreciated stock) from an IRA don’t qualify. We caution against using Roth IRAs for QCDs due to complexity and potential tax consequences. Traditional IRAs are the cleanest route.

Jason outlines several strategic reasons to use QCDs: reducing taxable income to protect Social Security benefits, avoiding IRMAA surcharges on Medicare, qualifying for the new 2026 senior deduction (between $150,000–$250,000 AGI), and preserving room for Roth conversions. These moves can result in substantial long-term tax savings.

Lastly, Alex explains a new IRS reporting feature: a “Code Y” in Box 7 of the 1099-R to identify QCDs. While optional for custodians in 2025, it becomes more prominent in 2026.

It’s a helpful safeguard to ensure QCDs are properly reported as non-taxable — but documentation remains critical.

⏱️ Chapters & Timestamps
(00:00) – Introduction
(00:36) – Who qualifies for QCDs?
(01:34) – QCDs for inherited IRAs
(02:21) – Why timing matters: turning 70½
(03:43) – Tax advantages of QCDs
(04:21) – How to properly execute a QCD
(05:13) – Limits and benefits for married couples
(05:42) – 401(k) rollover considerations
(06:19) – No donor-advised funds or benefits allowed
(07:40) – QCDs must be in cash, not stock
(08:50) – Strategic tax benefits of QCDs
(10:46) – New IRS Code Y on 1099-R forms
(12:10) – Contact info and final thoughts

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/

Contact Our Team: https://hoslerwm.com/contact-us/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/

Copyright © 2022-2026 Hosler Wealth Management | All Rights Reserved.

Produced by JAG Podcast Productions - www.jagpodcastproductions.com.

#ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this episode, we explore the upcoming Trump Accounts and what they could mean for American families. These accounts, born from the OBBBA legislation, will officially launch on July 4, 2026. Children born between January 1, 2025, and December 31, 2028, will automatically receive a $1,000 federal contribution into their Trump Account. But the scope is much broader—children under 18 will also be eligible to have these accounts opened and funded by parents, grandparents, or even employers.

We break down how this initiative could help build a new generation of capitalists by allowing children to invest from birth and potentially accumulate significant wealth before adulthood. Unlike IRAs or Roth IRAs, which require earned income, Trump Accounts do not. This means tax-deferred investment growth for up to 18 years, an opportunity previously unavailable to most minors. Once a child turns 18, the account transitions to a traditional IRA, with all standard rules applying.

We also dive into how contributions—up to $5,000 per year from family and $2,500 from employers—can compound over time. That $5,000 is indexed for inflation, making this a long-term, scalable wealth-building tool. Investments are limited to low-cost U.S.-based index funds, such as the S&P 500 or Dow Jones, reinforcing the theme of investing in America.

There’s also a compelling policy angle here. Employers can contribute to these accounts as a benefit to attract talent, and those contributions won’t count toward the employee’s taxable income. Additionally, philanthropic involvement—like Michael Dell’s recent $6 billion pledge—could play a pivotal role. We discuss how charitable deductions could potentially apply if large donations are made to the Trump Account system, though specifics are still evolving.

We raise awareness about critical timing rules—particularly the need to fund these accounts before a child turns 18. Once that calendar year starts, eligibility ends. We emphasize that while withdrawals aren’t allowed before age 18, after that point, traditional IRA rules apply, including potential penalties for early withdrawals before age 59½.

Overall, this is more than just a savings account—it’s a transformative financial tool. We see this as a chance to teach kids about long-term financial planning, compound interest, and the power of deferred gratification. These accounts could lay the groundwork for financial independence, generational wealth, and a broader sense of ownership in the American economy.

📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k

⏱️ Chapters & Timestamps
(00:00) – Introduction and Episode Overview
(00:28) – What Are Trump Accounts?
(01:57) – Policy Background and Eligibility
(03:00) – Investment Options and Index Requirements
(05:11) – Legacy Planning and Generational Wealth
(06:57) – Contributions: Parents, Grandparents, Employers
(07:42) – Philanthropy and Charitable Deductions
(10:34) – Rules, Restrictions, and Early Withdrawal Penalties
(13:05) – Behavioral Benefits: Delayed Gratification
(14:35) – Contact Info and Final Thoughts

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/

Contact Our Team: https://hoslerwm.com/contact-us/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/

Copyright © 2022-2026 Hosler Wealth Management | All Rights Reserved.

Produced by JAG Podcast Productions - www.jagpodcastproductions.com.

#ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this episode, we explore the expanded flexibility and potential of 529 plans in light of recent legislative changes. We begin with a refresher on how 529s have traditionally been used to fund college expenses, but quickly shift to how these accounts now offer broader applications thanks to evolving tax law, including updates from the Tax Cuts and Jobs Act, the SECURE Act 2.0, and the newly enacted One Big Beautiful Bill Act (OBBBA).

We discuss how 529s can now be used for K–12 education, not just for tuition but also for items like books, standardized tests, tutoring, and even educational therapy. This opens the door for families to apply these tax-advantaged funds toward private school and special needs services for younger children—services that are increasingly common among our clients.

We also highlight a major opportunity created by SECURE Act 2.0: the ability to roll over unused 529 funds into a Roth IRA in the name of the beneficiary. This means families can now provide their children or grandchildren with a financial head start—not just for education but also for retirement. The conversion limit is currently capped at $35,000 and must follow specific eligibility and timing rules, but it's a powerful long-term planning tool.

Another important change coming in 2026 is the increased annual limit for K–12 qualified distributions—from $10,000 to $20,000. This effectively doubles the amount that can be withdrawn tax-free for qualified expenses, making 529s even more practical for families with high educational costs early in a child’s schooling.

Finally, we talk about how the OBBBA expands 529 use to cover post-secondary credentialing programs. That includes trade schools, certifications, professional licenses, and even continuing education programs outside traditional colleges, as long as they’re recognized under federal law or by formal credentialing bodies. We emphasize how this change aligns with the current workforce needs, especially as more people pursue skilled trades or alternative career paths without accumulating student debt.

In short, 529 plans are no longer just for college. They're now a flexible, multigenerational financial tool that can support both education and retirement planning in more ways than ever before.

📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k

⏱️ Chapters & Timestamps
(00:00) – Introduction
(00:29) – What Are 529 Plans?
(01:08) – Real Client Example: Private School Funding
(02:01) – Roth IRA Rollovers from 529s
(03:26) – The One Big Beautiful Bill Act (OBBBA) Explained
(03:50) – Expanded K–12 Expenses (Effective July 2025)
(04:54) – Increased Withdrawal Limits Starting in 2026
(05:48) – Credentialing and Trade School Use of 529s
(08:02) – Closing Thoughts and Contact Info

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/

Contact Our Team: https://hoslerwm.com/contact-us/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/

Copyright © 2022-2026 Hosler Wealth Management | All Rights Reserved.

Produced by JAG Podcast Productions - www.jagpodcastproductions.com.

#ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler