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Government Shutdowns, 401(k) Catch-Up Changes, and When Trusts Actually Make Sense
Andy lives right outside DC, where government shutdowns actually matter. For the rest of the country? Not so much.
Markets barely react to these political theatrics anymore. Seven out of ten shutdowns since 1980 saw positive stock returns. The worst decline was 2% back in 1990.
But there's a tax change coming in 2026 that does matter: if you make over $145,000 and contribute catch-up dollars to your 401(k), those contributions will now have to be made through a Roth account, rather than a 401(k). No more deferring taxes on that extra $7,500.
Adam and Andy discuss what this means, why it's confusing, and whether it might actually be good for you long-term. Plus, they tackle the perennial question: do I need a trust?
We cover:
- Why government shutdowns don't move markets (even 35-day ones)
- Markets expecting dysfunction as the new normal
- The 2026 catch-up contribution rule change explained
- Income thresholds, look-back periods, and per-employer limits
- Why forced Roth contributions might help you despite the tax hit
- Revocable vs. irrevocable trusts
- When trusts make sense beyond estate tax planning
- The probate problem nobody thinks about
- How wills and trusts work together (not against each other)
⏱️ Timestamps:
- (00:32) Living in the DC shutdown zone
- (01:55) Government shutdown history and market returns
- (03:51) Debt ceiling vs. shutdown drama
- (06:46) Markets pricing in permanent dysfunction
- (09:22) The 2026 401(k) catch-up contribution change
- (11:48) Those oddly specific age brackets (60-63)
- (13:38) Roth catch-up requirements starting 2026
- (16:41) Per-employer loopholes
- (18:49) Silver lining: forced tax diversification
- (22:39) Trust fundamentals: revocable vs. irrevocable
- (26:13) Control beyond the grave
- (29:25) The probate nightmare
- (33:25) Wills complement trusts, don't replace them
- (38:01) Podcast disclosures
Resources:
Follow Burney Wealth Management on LinkedIn
Follow Adam Newman on Linkedin
Follow Andy Pratt on LinkedIn
#RetirementPlanning #401k #EstatePlanning #Trusts #TaxPlanning #WealthManagement
The Burney Company is an SEC-registered investment adviser. Burney Wealth Management is a division of the Burney Company. Registration with the SEC or any state securities authority does not imply that Burney Company or any of its principals or employees possesses a particular level of skill or training in the investment advisory business or any other business. This content is for informational and educational purposes only. It is not intended as personalized investment advice or a recommendation.
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By Burney Wealth ManagementAndy lives right outside DC, where government shutdowns actually matter. For the rest of the country? Not so much.
Markets barely react to these political theatrics anymore. Seven out of ten shutdowns since 1980 saw positive stock returns. The worst decline was 2% back in 1990.
But there's a tax change coming in 2026 that does matter: if you make over $145,000 and contribute catch-up dollars to your 401(k), those contributions will now have to be made through a Roth account, rather than a 401(k). No more deferring taxes on that extra $7,500.
Adam and Andy discuss what this means, why it's confusing, and whether it might actually be good for you long-term. Plus, they tackle the perennial question: do I need a trust?
We cover:
- Why government shutdowns don't move markets (even 35-day ones)
- Markets expecting dysfunction as the new normal
- The 2026 catch-up contribution rule change explained
- Income thresholds, look-back periods, and per-employer limits
- Why forced Roth contributions might help you despite the tax hit
- Revocable vs. irrevocable trusts
- When trusts make sense beyond estate tax planning
- The probate problem nobody thinks about
- How wills and trusts work together (not against each other)
⏱️ Timestamps:
- (00:32) Living in the DC shutdown zone
- (01:55) Government shutdown history and market returns
- (03:51) Debt ceiling vs. shutdown drama
- (06:46) Markets pricing in permanent dysfunction
- (09:22) The 2026 401(k) catch-up contribution change
- (11:48) Those oddly specific age brackets (60-63)
- (13:38) Roth catch-up requirements starting 2026
- (16:41) Per-employer loopholes
- (18:49) Silver lining: forced tax diversification
- (22:39) Trust fundamentals: revocable vs. irrevocable
- (26:13) Control beyond the grave
- (29:25) The probate nightmare
- (33:25) Wills complement trusts, don't replace them
- (38:01) Podcast disclosures
Resources:
Follow Burney Wealth Management on LinkedIn
Follow Adam Newman on Linkedin
Follow Andy Pratt on LinkedIn
#RetirementPlanning #401k #EstatePlanning #Trusts #TaxPlanning #WealthManagement
The Burney Company is an SEC-registered investment adviser. Burney Wealth Management is a division of the Burney Company. Registration with the SEC or any state securities authority does not imply that Burney Company or any of its principals or employees possesses a particular level of skill or training in the investment advisory business or any other business. This content is for informational and educational purposes only. It is not intended as personalized investment advice or a recommendation.