There’s no shortage of uncertainty these days. Between shifting political priorities, market volatility, and changes in legislation, it can feel hard to keep up.

But taking the long view means you don’t have to because that’s exactly what we’re here for.

The new tax and spending legislation signed into law over the July 4th weekend is significant. We’re already evaluating its implications through the lens we bring to all planning topics: simplicity, cost-efficiency, and long-term alignment. Below, we’re sharing a summary of the key changes and potential impacts worth noting.

As always, we’ll coordinate with your tax and estate planning professionals and bring relevant insights into our upcoming planning conversations when appropriate.

The Hill Viewpoint

At Hill, we return to a few core principles again and again:

Keep it simple. Keep it low cost. Keep it liquid.

We’re running the new tax changes through that same lens—separating what’s useful from what’s noise, and focusing on what could enhance your long-term plan without adding unnecessary complexity.

We’re here to help you take the long view, stay steady through change, and, most importantly, simplify the financial side of life so you can focus on what matters most: time with family, meaningful experiences, and the freedom to enjoy the life you’ve built.

If you have questions about how this applies to your situation, let’s connect. We’re happy to discuss what it may mean for your plan.

What We’re Watching

Investments

Key Point:
With tax rates locked in and fewer Alternative Minimum Tax (AMT) concerns, depending on your situation, there may be more room to plan investment income, withdrawals, and Roth conversion strategies.

Income & Tax Planning

• The lower tax brackets enacted in 2017 are now permanent, offering more certainty for long-term planning.
• Deductions for state and local taxes (SALT) have been expanded through 2028—potentially benefiting residents in higher-tax states.
• Fewer taxpayers are expected to be affected by the AMT, which could support more flexible income planning for those with incentive stock options or who itemize deductions.
  

Retirement Accounts

• No direct changes were made to IRAs, Roth IRAs, or required minimum distributions (RMDs).
• With lower rates remaining in place, planning strategies like Roth conversions or flexible withdrawal sequencing may gain added relevance—especially for those with significant pre-tax balances.
  

New Accounts to Watch

• A new federally sponsored savings account program for children born between 2025 and 2028 was introduced. While sometimes referred to informally as “baby bonds,” this savings vehicle offers a $1,000 contribution per eligible child.
• Use of these funds will be restricted to specific purposes, and more guidance is expected from federal agencies.
• These accounts are unlikely to be more favorable than existing vehicles like 529s from an investment perspective, but they may play a complementary role in family savings plans.

Estate Planning

Key Point:
The higher estate exemption offers more planning flexibility and may prompt a fresh look at existing trust structures.

• The estate tax exemption will increase to $15 million per person ($30 million per couple) starting in 2026.
• This higher threshold is currently permanent unless changed by future legislation.
• This could reduce the need for complex estate planning structures or insurance-based strategies tied to estate tax obligations for some families.
  

Tax Law Highlights

Key Point:
Several provisions offer expanded deductions and planning opportunities, especially for retirees and those with variable income.

• The standard deduction remains high, reducing the need for itemization in many households.
• New deductions for tip income (up to $25,000) and overtime pay (up to $12,500) will apply through 2028 for eligible earners.
• A new $6,000 deduction for individuals age 65+ is also included, with similar sunset timing.
  

Charitable Giving

Key Point:
Charitable giving remains a powerful planning tool, but new thresholds make strategy more important.

• Beginning in 2026, non-itemizers can deduct up to $1,000 (individuals) or $2,000 (joint filers) in charitable gifts.
• For itemizers, deductions only begin once gifts exceed 0.5% of income.
• For business owners, deductible giving now requires contributions greater than 1% of income.
• As a result, tactics like “bunching” gifts or using donor-advised funds may become even more relevant.
  

Education Planning

Key Point:
Families assisting with education costs may benefit from expanded 529 rules and student loan changes.

• Starting in 2026, borrowing limits will apply to certain federal student loans (Grad PLUS and Parent PLUS).
• Simplified income-based repayment plans are replacing current programs.
• 529 plan usage has expanded: families may now use up to $20,000 per student (up from $10,000) for elementary or secondary tuition—including private or religious schools.
• Qualified 529 expenses now include some non-tuition costs for K–12 education and costs related to professional credentialing.
  

Insurance

Key Point:
The expanded estate exemption may reduce the role of life insurance in certain estate plans.

• No direct changes were made to life or long-term care insurance rules.
• However, some clients may find they no longer need insurance to offset estate taxes.
• This could be a good opportunity to reevaluate existing policies or trust structures in light of broader estate planning goals.
  

Final Thoughts

As we digest the details of the new law, our approach remains unchanged: stay focused on what matters, filter out the noise, and align each opportunity with your long-term goals.

When the landscape shifts, we stay steady, so you can too.

Disclosures:
This material is intended for general informational purposes only and should not be construed as investment, legal, or tax advice. The views expressed are those of Hill Investment Group and are subject to change. Always consult your financial, legal, or tax professional regarding your specific situation. Hill Investment Group is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training.

At Hill Investment Group, we’ve found that when a few clients ask similar questions, many more are likely thinking the same thing. To better serve you, we’re introducing our “Hey Hill” newsletter series—addressing common client questions and sharing our perspective.

To submit a question for a future post, email us at service@hillinvestmentgroup.com

Is a Roth IRA Conversion Right for You?

Roth IRA conversions can be a valuable, but often misunderstood tool in long-term financial planning. When thoughtfully timed and executed, they may provide tax advantages, increased flexibility, and legacy planning benefits. But like most financial strategies, they’re not one-size-fits-all.

So how do you know if a Roth conversion might make sense for your situation?

What Is a Roth Conversion?

A Roth IRA conversion means moving money from a pre-tax retirement account—such as a Traditional IRA—into a Roth IRA. You’ll pay ordinary income taxes on the converted amount in the year of the transfer. From that point forward:

• Your investments may grow tax-free inside the Roth
• You can make tax-free withdrawals in retirement (if IRS rules are followed)

In essence, you’re trading a tax bill today for the potential of tax-free growth and withdrawals in the future.

Who Might Want to Consider a Conversion?

A Roth conversion may be worth exploring if:

• You expect to be in a higher tax bracket later
• You can pay the tax bill from non-retirement assets, leaving your retirement funds intact
• You’re in a temporarily low-income year (e.g., early retirement, career break, or sabbatical)
• You’re planning for heirs—Roth IRAs aren’t subject to required minimum distributions (RMDs), which may make them attractive in legacy planning
• You don’t need the money soon—the longer Roth funds grow tax-free, the more powerful the benefit

How It Can Support Your Long-Term Plan

When aligned with your overall strategy, a Roth conversion can:

• Reduce future RMDs and lower taxable income in retirement
• Diversify your tax “buckets,” giving you flexibility in how you draw income
• Potentially ease your heirs’ future tax burden by leaving them tax-advantaged assets
• Help you build more predictable after-tax income over time

It’s a classic example of playing the long game—something we believe in deeply at Hill.

When It Might Not Make Sense

A Roth conversion isn’t ideal for everyone. It may not be the right move if:

• You’d need to use retirement funds to pay the conversion tax
• You’re already in a high tax bracket and expect it to be lower in the future
• You’ll need access to the converted funds within five years (each conversion starts a separate 5-year clock for penalty-free withdrawals)

The Bottom Line

Roth conversions can be powerful, but the decision is nuanced. The tax rules are complex. The upfront cost can be significant. And timing matters.

That’s where we come in. Through our advisory relationships, we help clients model the long-term impact of a Roth conversion—year by year—so they can move forward with clarity and confidence.

At Hill, we don’t just focus on what’s smart today. We help you make decisions that align with your long-term goals and legacy.

Thinking about a Roth conversion? Let’s explore whether it’s a fit—for your plan, your family, and your future.

Book a time to talk.

Disclosures:

Hill Investment Group is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. The information provided is for educational purposes only and should not be construed as personalized investment, tax, or legal advice. Roth IRA conversions involve complex tax considerations and may not be appropriate for all investors. Consult your tax advisor or financial professional before implementing any financial strategy. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results.

It’s never been easier or more overwhelming to get financial advice. Open your phone and you’ll likely see someone with a large following and bold opinions telling you what to do next with your money. Scroll your feed and it’s hard to miss: dramatic predictions, attention-grabbing “can’t-miss” trades, and influencers claiming to decode the secrets of building wealth.

Welcome to the age of the “finfluencer.” While some have genuine experience, many are focused on views, and not your best interest.

At Hill Investment Group, we believe that real advice should be simple, clear, and grounded in evidence, not hype. That’s why we’re launching a new series to unpack misleading ideas that circulate online or in print.

Our goal? To inform, not entertain. To offer substance, not speculation.

We won’t chase the latest trend. We’ll challenge it with patience, perspective, and real-world research. That’s because, when it comes to your financial future, having a long-term plan that is built on decades of data and thoughtful execution matters more than a viral headline.

We hope this series gives you and those you care about a steady hand in a noisy world. We’ll start next month with one of the most common (and flawed) ideas making the rounds today.

Heard something at work, at golf, or on social media that has you asking, “Should I be paying attention to this?”

Feel free to share it with us. We’d love to help unpack it. Submissions will remain confidential unless we get your permission to share anonymously. Send to: zenz@hillinvestmentgroup.com

Please note: Submissions are reviewed for educational purposes only and do not constitute personalized investment advice.