The One Big Beautiful Bill (OBBB) marks one of the most substantial recent shifts in the tax landscape. While it does not directly alter the structure of Walmart Associates’ Deferred Compensation Matching Plan (DCMP), it does create an environment that invites associates to refresh their tax strategy and consider how they might fine-tune that strategy in the coming years. For many, decisions around deferrals and distributions carry even greater significance in 2026 than in previous years. We’ve explored two key changes that could present meaningful opportunities in strengthening your tax strategy:
- Permanency of Marginal Tax Brackets
- Purposeful Charitable Strategy
The current marginal tax brackets, established under the Tax Cuts and Jobs Act, feature both lower rates and wider range brackets, creating a more advantageous landscape for taxable income. With the OBBB Solidifying the Permanency of These Brackets, associates can approach their financial planning with greater confidence. This stability provides a welcoming opportunity for strategic deferred income spreading and maximizing the tax benefit on each dollar reported.
Beginning in 2026, the introduction of a charitable floor will change how contributions interact with taxable income, establishing a minimum threshold for deductibility. For high earners with deferred compensation elections, coordinating charitable contributions with deferred compensation distributions can help manage AGI and maximize the portion of giving that is deductible. Thoughtfully Aligning a Purposeful Charitable Strategy with deferred compensation timing can increase tax efficiency and ensure income pushed into higher brackets does not reduce the benefit of charitable giving.
Navigating tax strategy through deferred compensation elections can feel like navigating uncharted waters, and it’s certainly not a one-size-fits-all decision. The potential benefits depend on many factors, and our team is ready to help you decipher them. Contact us today to connect with our Wealth Advisors and accounting services coordinators who can provide personalized guidance throughout this year’s election window and in the years ahead.
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This material is provided for informational purposes only, should not be viewed as an exhaustive discussion of the topics presented, and should not be construed as individualized advice for any reader’s personal circumstances. For guidance on how these matters may impact your financial plan or investment portfolio, please contact a GGI representative. While the information presented is believed to be factual and up to date, GGI does not guarantee its accuracy and, due to various factors, including but not limited to changes to the nature or scope of executive benefits plans offered, this information is subject to change. All expressions of opinion reflect the judgment of the authors as of the date of publication.
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