Building a tax efficient portfolio

Summary

CNBC senior personal finance correspondent Sharon Epperson joins Power Lunch to discuss tax-efficient portfolio planning for 2026. She highlights higher IRA and 401(k) contribution limits, a new Roth catch-up requirement, and the importance of asset location. She also covers tax-loss harvesting and donating appreciated stock to a donor-advised fund. No specific securities or market directional calls were made.

• IRS tax filing season starts Jan 26, with an April 15 deadline.
• 2026 IRA contribution limit rises to $7,500, with an $11,000 catch-up for age 50+.
• 401(k) contribution limit rises to $24,500, with catch-up contributions up to $8,000, or $11,250 for ages 60-63.
• Catch-up contributions for those 50+ must be Roth starting this year, removing the upfront tax break.
• Asset location is key: stocks in Roth accounts, fixed income or municipal bonds in taxable accounts.
• Tax-loss harvesting and donor-advised funds can help manage capital gains.
• The segment focuses on personal finance planning rather than specific market trades.