As Americans grapple with rising costs and economic uncertainty, financial experts are urging a closer look at tax planning as a key tool for building and preserving wealth. A recent survey highlights a stark disconnect: while 80% of respondents anticipate higher taxes in the future, only 31% are adjusting their financial strategies to prepare, according to the Nationwide Retirement Institute. This oversight, experts say, could cost families thousands in unnecessary taxes each year.
"When people are searching for ways to save money — yes, you can buy in bulk, yes, you can limit eating out — but I think sometimes people forget that you can be strategic in tax planning to save money," said Kamila Elliott, a certified financial planner and co-founder and CEO of Collective Wealth Partners. "Not thinking about tax planning, it can be a significant oversight for a lot of families." Elliott, a member of the CNBC Financial Advisor Council, emphasized that proactive steps like maximizing workplace benefits can significantly reduce taxable income.
Workplace retirement plans offer one of the most accessible avenues for tax savings. In 2026, employees can contribute up to $24,500 pretax to a 401(k) or 403(b) account, deferring taxes until withdrawal in retirement. Those aged 50 and older qualify for catch-up contributions of an additional $8,000, while individuals between 60 and 63 can make super catch-up contributions of up to $11,250. However, high earners—those making more than $150,000 from their current employer in 2025—must direct catch-up contributions to an after-tax Roth account, allowing tax-free withdrawals later.
Health savings accounts (HSAs) provide another pretax option for those enrolled in high-deductible health plans. Contributions reduce taxable income immediately, and the funds can grow tax-free for qualified medical expenses or even serve as a retirement vehicle. "It allows you to put money away, get a pretax benefit for it, take advantage of the appreciation because it's invested, and then use it to reimburse yourself for medical expenses later in life, or just take it as a regular retirement distribution, like as if it were a traditional IRA," explained AJ Campo, a certified public accountant and president of Campo Financial Group.
For those ineligible for HSAs, flexible spending accounts (FSAs) offer alternatives. Health-care FSAs, capped at $3,400 in contributions for 2026, cover qualified medical costs but require spending within the year. Dependent care FSAs, with a $7,500 household limit, can offset expenses like daycare or summer camps. "If you can maximize these pretax deductions, you can limit part of your income going up the progressive chart, and that's real savings," Elliott noted.
Beyond deductions, strategic investment placement can further minimize tax liabilities. Cathy Curtis, founder and CEO of Curtis Financial Planning and another CNBC Financial Advisor Council member, advises placing income-generating investments—taxed at ordinary rates—into tax-deferred accounts like traditional IRAs. Ordinary income tax rates often exceed capital gains rates, creating substantial savings. "I don't know how many people understand the difference between the capital gain rate and the ordinary tax rate, but it can make a substantial difference," Curtis said.
In contrast, tax-efficient investments such as exchange-traded funds (ETFs) and municipal bonds, which generate lower-taxed income, belong in taxable brokerage accounts. For high-growth potential assets, Curtis recommends Roth IRAs, funded with after-tax dollars. "You could grow that thing like crazy your whole life and you'll never be taxed on it," she said, highlighting the appeal for long-term wealth accumulation.
Tax-loss harvesting emerges as a timely tactic amid market volatility. This involves selling underperforming investments to offset capital gains, with excess losses deductible up to $3,000 against ordinary income. While often a year-end ritual, Curtis advocates year-round application. "Right now, I'm looking for any short-term loss opportunities that I can take to offset gain somewhere else," she said. "I don't think you should overdo it, but it's a good strategy, especially for people who have owned things with huge cap gain that's an oversized position in their portfolio."
Looking ahead to potential tax increases, Roth conversions are gaining traction. These transfers from traditional IRAs to Roth IRAs incur upfront income taxes but enable tax-free withdrawals and avoid required minimum distributions. Timing is crucial, Curtis cautioned. "I look at strategically at years where my client may have lower income, where they can convert a Roth and it won't take them into too high of a marginal tax bracket," she explained, citing post-retirement periods, job losses, or sabbaticals as ideal windows.
High-income individuals who max out standard 401(k) contributions may explore the mega backdoor Roth. After reaching the $24,500 elective deferral limit, some plans allow after-tax contributions up to a total of $72,000 in 2026, which can then convert to Roth status. Campo warns against short-term thinking: "Don't let the tax tail wag the dog. Most people just focus on the now, and I want to save taxes now — and it's very short sighted." He advocates planning for long-term mitigation, even if it means paying taxes upfront.
Charitable giving through donor-advised funds offers deductions while supporting causes. These funds accept cash or appreciated assets, like stocks or mutual funds, avoiding capital gains taxes on the growth. Curtis favors them for clients with highly appreciated company stock. "The fact that you could give highly appreciated shares and forever avoid that capital gain is a huge tax benefit," she said. Donors can distribute grants over time, providing flexibility.
The Nationwide survey also revealed that 17% of investors view unfamiliarity with portfolio tax strategies as a top retirement concern, underscoring the need for education. With tax laws evolving—especially post-2025 when certain provisions from the 2017 Tax Cuts and Jobs Act may expire—experts like Elliott stress integrating tax planning into overall financial reviews. "Tax planning isn't just for the wealthy; it's for anyone looking to make their money work harder," she added in a recent CNBC interview.
As markets fluctuate and inflation persists, these strategies could prove vital. Financial advisors report increased inquiries about Roth options and loss harvesting following recent volatility. Campo, for instance, is advising clients to assess 2026 contribution limits early to lock in benefits. Yet, he cautions that individual circumstances vary, recommending consultation with professionals to tailor approaches.
Broader implications extend to retirement security. By deferring or eliminating future taxes, savers can compound wealth more effectively, potentially adding hundreds of thousands to nest eggs over decades. The CNBC report, published on March 30, 2026, coincides with ongoing discussions in Washington about fiscal policy, though no immediate changes were announced. For now, accessible tools like HSAs and 401(k)s remain cornerstones of tax-efficient planning.
Looking forward, events like the upcoming CNBC Pro Live — Wealth for Women on May 28, 2026, at the NASDAQ MarketSite in New York, aim to demystify these topics. Featuring strategy sessions from CNBC contributors, the invitation-only gathering targets investors seeking actionable advice amid economic shifts. As Elliott put it, embracing tax savvy isn't optional—it's essential for financial resilience in an unpredictable landscape.