J.P. Morgan sees tax change uncertainty reshaping wealth plans
The new tax law has changed the calculus for many wealthy families. Those with assets spread across retirement accounts, charitable funds, and custodial plans are increasingly reevaluating their financial strategies.
Across J.P. Morgan Private Bank wealth planning notes published on June 10, 2026, three topics keep surfacing: which accounts make the most sense for building children's wealth under the new law, when a Roth conversion actually pays off, and how donor-advised fund stacking can dramatically change what a family deducts when they give.
The answers aren't straightforward, and the numbers can vary widely depending on timing, income level, and how things are structured.
Trump Accounts enter the picture for next-generation savings
The One Big Beautiful Bill Act, signed into law on July 4, 2025, created a new type of tax-advantaged account for children under 18 called Trump Accounts, according to the IRS.
The accounts offer tax-deferred growth, a $5,000 annual contribution ceiling available until the year the child turns 18, and a one-time $1,000 government-funded pilot deposit for children born between January 1, 2025, and December 31, 2028.
The accounts function similarly to custodial traditional individual retirement accounts.
Contributions are not tax-deductible, withdrawals are generally prohibited until the beneficiary turns 18, and once the account converts to traditional-IRA treatment, withdrawals before age 59½ may trigger penalties, J.P. Morgan Private Bank noted in its analysis.
Importantly, under current guidance, individual contributions to Trump Accounts do not appear to qualify for the annual gift tax exclusion.
When a Roth conversion pays off
Periods of transition, whether that means leaving an employer, retiring, or starting to draw down savings, often prompt families to weigh what to do with an employer-sponsored 401(k) account.
J.P. Morgan Private Bank identifies two primary paths: keeping the assets in the employer plan or rolling them into an individual retirement account.
Keeping assets in a 401(k) can benefit workers who want access to the rule of 55, which allows penalty-free withdrawals from a 401(k) if you separate from service at age 55 or older, the bank noted.
A rollover individual retirement account, by contrast, opens the door to converting pre-tax retirement savings into a Roth IRA, a move that eliminates required minimum distributions and creates tax-free withdrawal potential for future years.
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The conversion triggers a taxable event, meaning the converted amount is treated as ordinary income in the year it occurs. But all future growth and qualified withdrawals are tax-free.
Tommy Lucas, a certified financial planner at Moisand Fitzgerald Tamayo, told CNBC that year-end tax planning is necessary because people don't have a clear picture of their full-year income until all sources are known.
Roth accounts also carry no required minimum distribution obligations, which is a significant planning advantage for families that do not need income from the account during retirement.
"The government contribution is a great perk, but the absence of an earned-income requirement is even more exciting," said Hayden Adams, CPA, CFP, director of tax planning and wealth management research at the Schwab Center for Financial Research
"Now, you can help your child start saving for retirement as soon as they're born rather than waiting until they get a job," He added, speaking about Trump Accounts and the new savings landscape for families.
J.P. Morgan Private Bank recommends paying any conversion taxes owed with assets held outside the individual retirement account to preserve the full value of the retirement savings.
How donor-advised fund stacking multiplies charitable deductions
Starting in 2026, the One Big Beautiful Bill Act imposed two new limits on itemized charitable deductions for high-income filers, according to J.P. Morgan Private Bank.
A 0.5% floor disallows the deduction for contributions equal to the first 0.5% of a taxpayer's adjusted gross income, and a separate 5.4% reduction in the value of itemized deductions applies to filers in the 37% bracket.
Damien Martin, a tax professional at Ernst & Young, told Thomson Reuters that donors who prefer to continue giving annually can still capture the benefit through a donor-advised fund.
All things being equal, income and the amount that you're giving, you're generally going to be better off from a tax deduction standpoint to make that donation in 2025
J.P. Morgan Private Bank illustrates the impact with a straightforward example: a person with $1 million in adjusted gross income who donates $6,000 each year for three consecutive years collects a total deduction of just $2,838 across that period.
By contrast, consolidating the same $18,000 into a single year of giving produces a total deduction of $12,298, the bank found. The total gift is identical. The deductible amount more than quadruples simply by changing the timing and structure of the contribution.
J.P. Morgan Private Bank noted that donating long-term appreciated publicly traded stock, rather than cash, is generally the most tax-efficient way to fund a donor-advised fund.
Doing so allows donors to claim a deduction at fair market value while avoiding capital gains tax on the embedded appreciation.
New tax rules are pushing families to act now
The One Big Beautiful Bill Act reshaped several planning levers simultaneously. The changes affect everything from how children's savings accounts are structured to when Roth conversions make sense and how charitable deductions are calculated.
For families with assets spread across multiple accounts and multiple goals, the interaction of these changes creates both new risks and new opportunities.
The message from J.P. Morgan Private Bank to clients is that uncertainty is not a reason to delay. They tell clients that families who coordinate these decisions, rather than treat them as isolated, end up better positioned.
The bank encourages clients to review their full wealth plan with their tax advisors before year-end to ensure all moving parts are aligned.
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This story was originally published June 19, 2026 at 11:33 AM.