Why You Shouldn’t Trust the Postmark Anymore

Starting December 24, 2025, the U.S. Postal Service (USPS) quietly changed how postmarks are applied, and it could mean the difference between an on‑time filing and a late-penalty charge.

Here’s the big change:
A postmark now reflects when your mail is first processed at a USPS facility, not when you dropped it off.

That might sound small, but for tax filings, it could be huge.

The problem: the IRS only looks at the postmark date

Under the IRS’s “mailbox rule,” a document is treated as filed on the postmark date. Historically, you could drop something off at the post office on April 15, get a same‑day postmark, and you were safe.

Now, that’s no longer guaranteed.

In this new system, if your envelope sits in a corner or local box for a day or two before it’s processed, it might get a postmark dated after the tax deadline. And that could trigger penalties, interest, or even missed tax elections, all because of a processing delay you can’t see.

Who should pay attention?

• Paper filers: Anyone still mailing returns or elections instead of e‑filing.

• Tax pros and preparers: Especially those mailing extensions, elections, or payment vouchers for clients.

• Businesses: Certain forms, elections, or claims still require physical mailing.

How to protect yourself

The safest move? Go digital whenever possible. But if you must mail something close to a deadline, here’s what to do:

• Avoid collection boxes near filing deadlines. They might not get processed for a day or more.

• Skip self‑service or metered labels: They don’t count as official postmarks.

• Mail from a retail USPS counter and watch it get stamp‑dated before your eyes.

• Request proof of mailing, such as:

  • A postage validation imprint (PVI) from the retail counter

  • A manual hand‑stamped postmark

  • Registered or certified mail service

For those who prefer the official text, you can read the USPS guidance here, but the takeaway is simple: don’t wait until the last minute to mail tax documents. The “postmark rule” isn’t as forgiving as it used to be.

Sam H. Fawaz CFP®, CPA, PFS is the President of YDream Financial Services, Inc., a fee-only investment advisory and financial planning firm serving the entire United States. If you would like to review your current investment portfolio or discuss any other retirement, college, tax, or financial planning matters, please don’t hesitate to contact us or visit our website at http://www.ydfs.com. We are a fiduciary financial planning firm that always puts your interests first, with no products to sell. If you are not a client, an initial consultation is complimentary, and there is never any pressure or hidden sales pitch. We begin with a thorough assessment of your unique personal situation. There is no rush and no cookie-cutter approach. Each client’s financial plan and investment objectives are unique.

No Paper, Only Plastic or Digital: Welcome to Tax Filing Season 2026

I can’t believe it’s here again—the hustle and bustle of the 2025 tax filing season.

Didn’t we just finish filing 2024 returns and 2025 tax planning?

What’s new

The One Big Beautiful Bill Act, signed into law in July 2025, made several changes taxpayers may want to be aware of when preparing their returns, including these:

· New deductions for tip income and overtime pay are available: up to $25,000 for qualified tips and up to $12,500 ($25,000 if married filing jointly) for overtime, both with income limits.

· A new $6,000 senior deduction is available for taxpayers 65 and older ($12,000 if both taxpayers are 65 and older and married filing jointly), with income limits.

· The Child Tax Credit has been increased to $2,200 per qualifying child.

· The State and Local Tax deduction cap increased to $40,000 for most filers, though this benefit begins to phase out for individuals with a modified adjusted gross income (MAGI) over $500,000.

· New deduction for interest on loans for qualifying new vehicles with final assembly in the U.S., for purchases made in 2025–2028.

· Starting in 2026, a new above‑the‑line charitable deduction up to $2,000 for cash gifts to qualifying charities, available even if you don’t itemize, subject to income limits.

Tips to make filing easier

To speed a potential tax refund and help with tax filing, the IRS suggests the following:

· Make sure you have received Form W-2 and other earnings information, such as Forms 1099, from employers and payers before heading to your favorite tax preparer or starting self-preparation.

The dates for furnishing such information to recipients vary by form, but they are generally not required before February 1, 2026. You may need to allow additional time for mail delivery.

Some brokerage 1099s may not be available until sometime in March, and Schedule K-1s for partnership, S corporation, and trust beneficiaries may be furnished close to or after the deadline (which may require an extension to file).

· Go to irs.gov to find Form 1040 or Form 1040-SR (available for seniors born before January 2, 1960), and their instructions.

· File electronically and use direct deposit or direct debit.

· Request an extension of time to file rather than rush through preparation. An extension of time to file does not extend the time to pay, so you must estimate your liability and send it in with your extension.

· Consider whether the cost of professional tax preparation, in light of many new and confusing tax provisions, is in your best interest. Professional tax preparation is recommended for anything but the simplest returns and often pays for itself in mistakes avoided, time, and tax savings, and frustration.

· Check irs.gov for the latest tax information.

Key filing dates

Here are several important dates to keep in mind:

· January 9. IRS Free File opened. IRS Free File Guided Tax Software, available only at irs.gov/freefile, allows participating software companies to accept completed 2025 tax returns from any taxpayer or family with an adjusted gross income (AGI) of $89,000 or less and electronically file the returns with the IRS.

On January 26, Free File Fillable Forms became available to taxpayers with an AGI above $89,000 to fill out and e-file themselves at no cost.

· January 26. The IRS began accepting and processing individual tax returns.

· April 15. The deadline to file 2025 federal income tax returns (or request an extension) arrives for most taxpayers. If you’re required to make quarterly estimated income tax payments, your 1st quarter 2026 estimated payment is also due (some state tax payment due dates vary slightly from federal due dates).

· June 15 and September 15. These are the due dates for the 2nd- and 3rd-quarter 2026 federal estimated income tax payments. These payments are due even if your 2025 tax return is on extension and has not yet been filed.

· October 15. This is the federal filing deadline for those who requested an extension on their 2025 tax returns.

January 15, 2027. This is the due date for the 4th quarter 2026 federal estimated income tax payment.

Tax refunds

The IRS encourages taxpayers seeking a tax refund to file their tax return as soon as possible. The IRS expects to issue most tax refunds within 21 days of receiving a tax return. That’s true only if:

(1) the return is filed electronically,
(2) the tax refund is delivered via direct deposit and,
(3) there are no issues with the tax return.

To minimize processing delays, the IRS encourages people to avoid paper tax returns whenever possible.

Paper Tax Refund Checks Being Phased Out by the IRS

As part of a broader U.S. Department of the Treasury initiative to transition to fully electronic federal payments, the IRS is phasing out paper tax refund checks for individual taxpayers beginning with the 2026 federal tax filing season and is also reducing reliance on paper checks paid to the IRS in favor of electronic payment options.

Why is the IRS making this change?

The move towards electronic payments is designed to protect taxpayers from the possibility of a paper refund check being lost, stolen, altered, delayed, or returned to the IRS as undeliverable. Electronic refunds (and payments) are also more cost-efficient and faster than non-electronic payments, which can take six weeks or longer to process.

What does this mean for taxpayers?

No changes are being made to the process of filing a tax return. Taxpayers should continue to file their tax returns as they normally would, using one of the existing filing options. However, the shift in refund delivery will be towards electronic payment methods. As a result, taxpayers should have all of their banking information (e.g., account and routing numbers) readily available when filing their returns.

While most tax refunds will be delivered by direct deposit or other secure electronic methods, alternative options, such as prepaid debit cards or digital wallets, will still be available for taxpayers without a bank account.

So plastic? Yes. Paper? No.

What if I owe the IRS money?

The IRS has stated that taxpayers should continue to use existing payment options until further notice, but is strongly encouraging individuals and businesses to use electronic payment options, since they are easier, faster, and more secure. Further IRS guidance is expected soon.

The IRS offers the following electronic payment options:

• IRS Direct Pay, which lets you pay the IRS directly from your bank account without fees

• Electronic Federal Tax Payment System (EFTPS), a free system offered by the U.S. Department of the Treasury to pay your federal taxes (only if you’re already enrolled; new enrollments were suspended as of October 17, 2025)

• IRS2Go, an IRS mobile app that allows you to make secure mobile payments using Direct Pay or card-based options

• Debit card, credit card, or digital wallet payments made through IRS‑approved third‑party processors (convenience fees may apply)

For more information on the IRS transition towards electronic payments, visit modernizing payments.

After all that, the bottom line is simple: in a world where the IRS is going plastic, Congress is handing out “One Big Beautiful” goodies, and paper checks are going the way of carbon paper, the smartest move you can make this filing season is to stay organized, think electronic, and, when in doubt, let a tax pro lose sleep so you don’t have to.

Sam H. Fawaz CFP®, CPA, PFS is the President of YDream Financial Services, Inc., a fee-only investment advisory and financial planning firm serving the entire United States. If you would like to review your current investment portfolio or discuss any other retirement, college, tax, or financial planning matters, please don’t hesitate to contact us or visit our website at http://www.ydfs.com. We are a fiduciary financial planning firm that always puts your interests first, with no products to sell. If you are not a client, an initial consultation is complimentary, and there is never any pressure or hidden sales pitch. We begin with a thorough assessment of your unique personal situation. There is no rush and no cookie-cutter approach. Each client’s financial plan and investment objectives are unique.

Mandatory Roth Catch-Up Contributions Begin in 2026

For nearly a quarter century, employers have offered their retirement savings plan participants age 50 and older a valuable opportunity: the chance to make additional catch-up contributions to their plans.¹

Thanks to the SECURE 2.0 Act passed in 2022, that opportunity became even more valuable: Employers may now allow plan participants aged 60 to 63 to contribute more than their other catch-up-eligible peers through “super catch-ups.”

In 2025, the standard plan contribution limit was $23,500. Participants ages 50 to 59 and 64 and older in 2025 can contribute an additional $7,500, while those ages 60 to 63 can contribute an additional $11,250.

However, SECURE 2.0 also included a provision requiring catch-up contributions to be made on a Roth basis for certain high-earning employees. In September 2025, the IRS issued final regulations on these mandatory Roth catch-ups, which will take effect this year.

The Big Picture

In most work-based savings plans, employees can make catch-up contributions and contribute on both a pre-tax and a Roth after-tax basis.² While pre-tax contributions reduce the proportion of a participant’s paycheck that is subject to current income taxes, Roth contributions allow participants to potentially build a tax-free nest egg for the future. Withdrawals from Roth accounts made after the account owner reaches age 59½ are tax-free, provided the account has been held for at least five years; other exceptions apply.

Pre-tax contributions can be especially appealing to high earners, who may contribute as much as possible (up to plan limits) to maximize the opportunity to reduce current taxable income.

However, pre-tax contributions also reduce federal tax revenue. That may be why legislators included a provision in SECURE 2.0 requiring catch-up contributions for those earning more than $145,000 to be made on a Roth (post-tax), rather than a pre-tax basis. Initially slated to take effect in 2024, that provision was delayed until 2026 to allow the IRS to finalize rules and employers to modify their systems and plan documentation accordingly.³

The Details

In September 2025, the IRS issued final regulations stating that the new requirements generally apply to contributions in taxable years beginning after December 31, 2026. The IRS further stated, “The final regulations also permit plans to implement the Roth catch-up requirement for taxable years beginning before 2027 using a reasonable, good faith interpretation of statutory provisions.”⁴ Many industry observers interpret this language to mean that employers will be expected to begin implementing the new provisions in 2026.⁵ ⁷

To determine whether an employee exceeds the $145,000 threshold, employers will use Federal Insurance Contributions Act (FICA) wages listed in box 3 of the employee’s W-2 form from the previous year. In other words, to comply in 2026, employers will use 2025 W-2 forms. The rule does not apply to those who do not have prior-year W-2 wages, such as the self-employed.⁶ ⁸

The new rule applies to standard and super catch-ups in 401(k), 403(b), and 457(b) plans; however, the new Roth mandate does not apply to SIMPLE plans or the special catch-up contributions permitted in 403(b) and 457(b) plans. Plans that do not offer Roth contributions must either add a Roth feature or disallow high earners from making catch-up contributions.⁷ ⁹ ¹¹

Tax and Retirement-Savings Impacts

High earners who may be subject to the new rule might want to review their tax-planning and retirement-savings strategies soon. Although Roth contributions can provide substantial tax benefits in the future, eliminating the pre-tax catch-up contribution could have a surprising impact on income tax planning during the 2026 tax-filing season.

Sam H. Fawaz CFP®, CPA, PFS is the President of YDream Financial Services, Inc., a fee-only investment advisory and financial planning firm serving the entire United States. If you would like to review your current investment portfolio or discuss any other retirement, college, tax, or financial planning matters, please don’t hesitate to contact us or visit our website at http://www.ydfs.com. We are a fiduciary financial planning firm that always puts your interests first, with no products to sell. If you are not a client, an initial consultation is complimentary, and there is never any pressure or hidden sales pitch. We begin with a thorough assessment of your unique personal situation. There is no rush and no cookie-cutter approach. Each client’s financial plan and investment objectives are unique.

1) CNBC, January 4, 2017
2) PLANADVISER, October 1, 2025
3) IRS Notice 2023-62
4) IRS, September 15, 2025
5) Society for Human Resource Management, accessed October 2, 2025
6, 8) Plan Sponsor Council of America, September 30, 2025
7, 9, 10) Slott Report, September 22, 2025
11) ADP SPARK blog, accessed October 2, 2025

New Year, New Account: How the 2026 Kids’ IRA Could Jump‑Start Your Child’s Retirement Savings

Beginning in 2026, a new type of tax-advantaged account for children, informally called “Trump accounts”, will become available. These are a special version of traditional IRAs designed to give kids an early head start on long-term retirement investing, with seed money from the federal government and, in some cases, additional funding from private donors.

Important: Rules are new and still evolving. Final forms, portals, and implementation details may change before these accounts launch. This overview is for general information only and is not personal tax or investment advice.

What is a Trump Account?

• A Trump account is essentially a traditional IRA for a child under age 18 who has a Social Security number.

• The accounts were created under the federal “One Big Beautiful Bill” and will take effect for tax years beginning in 2026.

• Although they follow many of the same tax rules as traditional IRAs, there are essential differences in who can contribute, how the accounts are funded, and how distributions work.

Who is Eligible and How Do You Opt In?

• Each eligible child must be opted in by a parent or guardian; accounts are not automatically created.

• The U.S. Treasury will set up the basic account framework for each eligible child, but parents must actively open/activate the account.

• To opt in, parents will either:

  • File new Form 4547, or

  • Enroll through a federal online portal once it is available.

• As of now, only a draft Form 4547 has been released, and the online portal is not expected to be available until mid‑2026.

Government and Private “Seed” Contributions

Trump accounts are unusual because they can receive funding from multiple sources, including the federal government and specific qualifying organizations.

• $1,000 federal contribution:

  • The federal government will contribute $1,000 to each Trump account opened for children born after 2024 and before 2029.

  • Parents must opt in (via Form 4547 or the portal) to receive this contribution.

• Additional $250 for lower‑income ZIP codes:

  • Michael and Susan Dell have pledged $6.25 billion to fund additional contributions for 25 million children ages 0-10 who live in ZIP codes with a median income below $150,000.

  • Eligible children in those areas will receive an additional $250 in their Trump accounts.

• These government and qualifying organizational contributions:

  • Are not taxable to the child.

  • Don’t create a cost basis in the account (they are treated more like pre‑tax contributions inside a traditional IRA for tax purposes).

How Much Can Be Contributed Each Year?

In addition to the federal and qualifying “general” contributions, families and employers can add their own money:

• Up to $5,000 per year can be contributed to a child’s Trump account until the child turns 18.

  • This annual limit applies to all contributions combined (parents, relatives, employers, etc.).

  • The $5,000 limit will be indexed for inflation each year after 2027.

• Of that $5,000 annual limit, up to $2,500 may be contributed tax‑free by an employer of either the parent or the child (if the child has a job).

• Contributions can be made by:

  • Parents or guardians.

  • Grandparents or other relatives.

  • Other individuals who wish to help fund the account.

• Key tax point:

  • No one gets an income tax deduction for contributing to a Trump account.

  • Qualified general contributions by governments or 501(c)(3)s, employer contributions, and the federal $1,000 contribution do not create a cost basis in the account.

• Timing restriction: Contributions cannot begin before July 4, 2026.

Investment Rules and Distribution Basics

These accounts are intended to be long‑term, stock‑based retirement-savings vehicles for children.

Investment options (before age 18)

• Until the child turns 18, Trump account funds may be invested only in:

  • Certain stock mutual funds, or

  • Exchange‑traded funds (ETFs) that track an index of primarily U.S. companies (for example, an S&P 500 index fund).

• The goal is to keep investment choices simple, diversified, and aligned with long‑term growth.

Withdrawals and taxes

• Before age 18:

  • Distributions are generally not allowed while the beneficiary is under 18, with limited exceptions to be clarified in regulations.

• Starting at age 18:

  • Once the beneficiary reaches 18, distributions are taxed similarly to a traditional IRA:

    • Withdrawals that represent cost basis (after‑tax contributions) are generally not taxable.

    • Withdrawals of earnings (growth, income, and pre‑tax contributions) are taxable as ordinary income in the year withdrawn.

  • Before age 59½, taxable portions of distributions may also be subject to a 10% early distribution penalty, unless an exception applies (e.g., certain education expenses, first‑time home purchase, or other qualifying events under IRA rules).

Rollovers

• A Trump account may be rolled over, in or after the year the beneficiary turns 18, to:

  • A traditional IRA for the same beneficiary, or

  • Certain other qualifying retirement accounts (subject to future guidance).

• This allows the account to transition into the standard retirement system once the child is an adult.

Planning Considerations for Families

For many families, especially those who do not currently max out other tax‑advantaged plans, Trump accounts may offer:

• A federally funded start for a child’s retirement savings.

• A structured way for parents, grandparents, and employers to add to long‑term savings.

• Investment in low‑cost, diversified stock index funds with decades to grow.

At the same time, because:

• Contributions are not deductible,

• Investment choices are restricted before age 18, and

• Rules around basis, taxation, and penalties mirror traditional IRA rules,

it will be essential to coordinate any Trump account funding with your broader retirement and education planning, as well as with Roth IRAs, 529 plans, and regular taxable accounts.

Kids’ IRA or UTMA/UGMA Account?

Some leading financial planners have noted that Trump accounts may not always be the best way to save for children.

One key critique is that while these accounts offer tax deferral, they do not provide tax‑free growth as a Roth IRA does. Instead, contributions are after‑tax, and much of the growth is eventually taxed as ordinary income when withdrawn in adulthood, similar to a non‑deductible traditional IRA.

By contrast, a simple taxable custodial account (UGMA/UTMA) can often take advantage of the kiddie tax and favorable long‑term capital gains rates, allowing families to realize gains periodically at low or even 0% tax rates and to step up basis over time. This can leave the child with more after‑tax wealth than a Trump account, even if the account values look similar on paper.​

Advisors also note that flexibility favors traditional custodial accounts.

UGMA/UTMA assets can be used for a wide range of goals once the child reaches majority: education, starting a business, a first home, or other needs, without early‑withdrawal penalties.

Trump accounts, on the other hand, are subject to retirement‑style rules: access is constrained, withdrawals before age 59½ can trigger penalties, and distributions are generally taxed as ordinary income.

Taken together, the ordinary‑income taxation, lack of a true tax‑free “Roth‑like” benefit, and tighter withdrawal rules are why some experts still prefer straightforward taxable custodial accounts as the primary savings vehicle for many families, using Trump accounts (if at all) as a supplemental tool rather than the core strategy.​

Get in touch with us if you’d like help evaluating whether a Trump account makes sense for your family and how it fits with your existing financial planning. The next step is to review your situation and your current saving priorities.

Sam H. Fawaz CFP®, CPA, PFS is the President of YDream Financial Services, Inc., a fee-only investment advisory and financial planning firm serving the entire United States. If you would like to review your current investment portfolio or discuss any other retirement, college, tax, or financial planning matters, please don’t hesitate to contact us or visit our website at http://www.ydfs.com. We are a fiduciary financial planning firm that always puts your interests first, with no products to sell. If you are not a client, an initial consultation is complimentary, and there is never any pressure or hidden sales pitch. We begin with a thorough assessment of your unique personal situation. There is no rush and no cookie-cutter approach. Each client’s financial plan and investment objectives are unique.

Understanding Invesco's Aggressive QQQ Proxy Push

Several clients have written to me inquiring about the barrage of calls, emails, and messages from Invesco regarding the ETF QQQ's push to gather proxy votes. Here’s an excerpt of one client's question and my response (greatly expanded for this article):

“…not the most consequential message you’ll receive this year, but my curiosity has been piqued ... by the campaign from Invesco QQQ to cast a proxy vote. I’ve never seen anything like it - the mailings, the calls, and so on - for a process that, in my experience, has always been ultra-routine and pretty meaningless for someone like me. Can you explain, and do you have any advice?”

Here’s how I responded

Regarding the campaign, you’re not alone. Many clients have noticed the unusually intense campaign from Invesco regarding the proxy vote for Invesco QQQ, and you’re right that it stands out from what’s usually a routine process for most fund shareholders.

Early on, my business partner suggested that I write and send an email to clients about this. Not realizing the intensity of Invesco’s push, I decided we didn’t need to, which turned out to be a mistake. In all my years in the business, I’ve never seen or heard of any company launching such an intense and aggressive proxy gathering campaign.

Here’s what’s really going on

Invesco is proposing to convert the ETF QQQ from its current structure (a unit investment trust, which dates back to the earliest ETFs) into a modern, open-ended exchange-traded fund. The primary rationale is to enhance flexibility, oversight, and reduce costs. Specifically, if shareholders approve, the QQQ expense ratio would decrease by 10% (from 0.20% to 0.18%), resulting in tens of millions of dollars in yearly savings across the fund. Importantly, this change won’t impact QQQ’s strategy, holdings, or tax characteristics, nor will it change the fund’s manager or its index-tracking approach.

The reason you’ve gotten multiple mailings and calls? Invesco requires a high level of shareholder participation: by law, converting QQQ’s trust structure requires more than half of all shares to be actively voted “yes.” Unlike typical votes where non-responses are ignored, in this case, non-votes count as “no” votes—which is why the fund is spending so much to encourage participation and obtain a quorum. With so many retail investors holding QQQ, this is a true logistical challenge.

Details of the push

• Three separate proposals must all pass: shareholders are voting on three linked items: conversion from a unit investment trust to an open-ended ETF, associated changes to the management/advisory structure, and the creation of a board of directors. If any proposal fails, none of the changes will be implemented.​

• Non-votes count as “No” votes: Unlike routine proxy votes, shareholders who do not respond are counted against the proposals, making high participation essential.​

• Shareholder benefits include:

  • Lower expense ratio (from 0.20% to 0.18%, estimated savings ~$70 million/year).​

  • Enhanced governance via a new board overseeing the fund for the first time; greater reporting and transparency, including summary prospectuses and semi-annual reports.​

• No change to investment objective, index, or tax treatment: The fund will continue to track the Nasdaq-100® Index. The conversion is a tax-free event for shareholders.​

• Huge outreach effort: Invesco is spending an estimated $40 million on proxy solicitation to ensure quorum, highlighting the unusual scale and importance of this campaign.​

• Record date: August 15, 2025. Only shareholders of record as of this date are eligible to vote.​

• If approved, conversion is likely to happen by year-end or early 2026.

Potential downsides of shareholder approval

• Increased Operational Flexibility Means More Managerial Discretion: The move to an open-ended fund structure allows Invesco and its new board greater latitude in making changes, such as fee adjustments or introducing derivatives, that previously required more restrictive oversight under the unit investment trust (UIT) format. This future flexibility depends on the intentions and discipline of the board and managers, and could shift if there’s turnover in leadership.​

• Invesco Begins Collecting Direct Management Fees: The new format allows Invesco to collect a “unitary management fee” that the trust structure previously didn’t permit. This creates an incentive to grow profits and, potentially, alter expenses down the line, despite the initial fee reduction.​

• Board Compensation and Governance Costs: A nine-member board will be introduced, which adds an additional cost layer (director compensation and overhead) that could offset some savings or shift incentives compared to a strictly trustee-based approach.​

• Liquidity Risk in Market Downturns: Open-ended funds may be forced to sell portfolio assets at unfavorable prices if a large number of investors redeem shares during periods of stress, potentially impacting performance. The UIT structure allows shares to trade among investors without requiring the sale of underlying assets, a mechanism that some investors value for stability during volatile times.​

• Shareholder Risk in Securities Lending: Invesco may expand its securities lending activities under the new structure, and any resulting risks or losses would be borne directly by shareholders, not by Invesco.​

• No Guarantee Future Fees Will Remain Lower: While initial projections indicate a 10% reduction in the expense ratio, future changes to fee schedules are possible under the new open-ended structure, subject to board approval.​

While many see these risks as manageable, they should be evaluated alongside the promised benefits. It’s important for shareholders to understand both sides before casting a vote.

What major institutional holders think

Major institutions that hold QQQ have generally leaned in support of the conversion vote, viewing the restructuring as beneficial for both operational efficiency and cost reduction. However, the fund has an unusually large retail investor base, making institutional votes influential but insufficient to guarantee passage, which is why Invesco has mounted such an aggressive campaign.​

• Institutional Sentiment: Proxy advisory firms and ETF strategists have publicly supported the move, highlighting reduced expense ratios, improved governance via a new board, and enhanced transparency as positives for shareholders. Major institutional holders—including major brokerage platforms, asset managers, and pension funds—are widely expected to vote in favor due to these clear-cut advantages, as their own portfolios will directly benefit from fee savings.​

• Voting Weight: Institutions typically vote their shares, but approximately 40–50% of QQQ ownership is held by retail investors, and a majority of the outstanding shares must vote “yes” for the conversion to occur.​

• No Institutional Opposition Spotted: As of now, there is no reported campaign of institutional opposition to the change; the proposal is seen industry-wide as a modernization step that aligns QQQ with other large ETFs.

What I think

This change appears to be designed to benefit shareholders by offering lower costs and greater transparency. Despite the potential downsides, it is unlikely to introduce major surprises or large additional risks.

If you agree, I’d suggest voting in favor; however, you won’t be at any disadvantage if you simply ignore the campaign—the fund will continue regardless. Invesco’s push is simply a matter of meeting the voting threshold they need.

Timing of the vote postponed

The original QQQ conversion proxy vote was scheduled for October 24, 2025. After failing to reach a quorum at the original meeting, the vote was postponed to December 5, 2025.

It sounds like the phone calls, emails, snail mail, and text messages will continue for a few more weeks. Or as they say, “the beatings will continue until morale improves.” Maybe casting your vote will stop all the messages. In any case, it’s worth a try.

Sam H. Fawaz CFP®, CPA, PFS is the President of YDream Financial Services, Inc., a fee-only investment advisory and financial planning firm serving the entire United States. If you would like to review your current investment portfolio or discuss any other retirement, college, tax, or financial planning matters, please don’t hesitate to contact us or visit our website at http://www.ydfs.com. We are a fiduciary financial planning firm that always puts your interests first, with no products to sell. If you are not a client, an initial consultation is complimentary, and there is never any pressure or hidden sales pitch. We begin with a thorough assessment of your unique personal situation. There is no rush and no cookie-cutter approach. Each client’s financial plan and investment objectives are unique.