Contribution limits for many tax-advantaged savings vehicles are indexed for inflation and many have increased for 2026:
- Workplace retirement plans including 401(k), 403(b), most 457 plans and Thrift Savings Plans: $24,500 plus $8,000 catch-up for those age 50 and older
- For those who will attain age 60, 61, 62 or 63 in 2026 and participate in one of the above plans, your catch-up contribution is $11,250 instead of $8,000, meaning you could contribute a total of $35,750 next year.
- New for 2026: if your FICA wages are over $150,000 in 2025, your over-50 catch-up contribution must be made on an after-tax Roth basis starting next year. If this applies to you, we suggest verifying with your HR or payroll department how this will be handled in your plan.
- IRAs: $7,500 plus $1,100 catch-up for those age 50 and older
- The adjusted gross income phaseout range for direct Roth IRA contributions has been updated: $153,000 to $168,000 for single filers and $242,000 to $252,000 for married couples filing together.
- SIMPLE IRA: $17,000 plus $4,000 catch-up for those age 50 and older
- For those who will attain age 60, 61, 62 or 63 in 2025 and participate in a SIMPLE IRA, your catch-up contribution is $5,250 instead of $4,000, meaning you could contribute a total of $22,250 next year.
- Defined contribution plan total: $72,000
- Health Savings Accounts: $4,400 (single plan); $8,750 (family plan) plus $1,000 catch-up for those age 55 and older
If you wish to maximize your savings opportunities, be sure to update your contribution amounts effective January 1, 2026. If you use payroll deduction to make your contributions, be sure to update your payroll deduction amounts prior to your first paycheck of 2026. Check with your Human Resources or payroll department for deadlines.
A few other changes to note for 2026:
- The aggregate amount of Qualified Charitable Distributions (QCD) that are not includible in gross income has increased to $111,000.
- New for 2026: up to $1,000 per person in cash gifts to charity will be deductible even if you use the standard deduction.
- The annual exclusion amount for gifting remains at $19,000 per person (same as 2025).
- Social Security benefits will be increased by 2.8% effective for payments beginning in January.
- Medicare Part B premiums will be increased to $202.90 per month.
- Edvest (the Wisconsin 529 College Savings Plan) has not yet released 2026 contribution amounts but they will be at least as much as the 2025 limits (up to $5,130 per beneficiary for single filers or married filing jointly and $2,560 per beneficiary for married filing separately and certain divorced parents).
We wish you and your families a happy holiday season!
The views expressed represent an assessment at a specific point in time, are opinions only and should not be relied upon as investment advice regarding investments, strategies, sectors or markets in general.
The above commentary has been obtained from sources we believe are reliable, but we cannot guarantee their accuracy or completeness. Past performance is no guarantee of future results. This is not a complete analysis of every material fact. All expressions of opinion are subject to change without notice.
The information contained in this document does not constitute the rendering of legal, accounting, or other professional advice or opinions on specific facts or matters. Talk to your financial advisor before acting on information in this document.