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Key Tax and Retirement Savings Changes You Need to Know

Todd Sensing, CFA, CFP®, CEPA®, ChSNC® Updated March 13, 2026
Key Tax and Retirement Savings Changes You Need to Know

This article is updated annually when the IRS releases inflation-adjusted limits for retirement accounts and tax thresholds. Last updated: March 2026 with confirmed 2025 and 2026 figures.

The IRS adjusts contribution limits, income thresholds, and tax brackets each year based on inflation. These changes determine how much you can save in retirement accounts, how much you can deduct, and how your investment income is taxed.

This page is a permanent reference for the key figures across retirement accounts, health savings accounts, Roth IRA phaseouts, standard deductions, and distribution rules.

Key Financial Limits Snapshot

2025 2026
401(k) contribution limit $23,500 $24,500
IRA contribution limit $7,000 $7,500
HSA contribution limit (family) $8,550 $8,750
Standard deduction (MFJ) $30,000 $31,400

Retirement Account Contribution Limits

Account 2025 Limit 2026 Limit
401(k) / 403(b) / 457 (under 50) $23,500 $24,500
401(k) catch-up (age 50+) $7,500 $7,500
401(k) total (age 50+) $31,000 $32,000
401(k) super catch-up (ages 60-63) $11,250 $11,250
401(k) total (ages 60-63) $34,750 $35,750
IRA (under 50) $7,000 $7,500
IRA catch-up (age 50+) $1,000 $1,000
IRA total (age 50+) $8,000 $8,500
SEP IRA (max employer contribution) $69,000 $73,500
415(c) total additions (all sources) $70,000 $73,500

SECURE 2.0 Super Catch-Up (Ages 60-63)

Starting in 2025, workers aged 60 through 63 can make a higher catch-up contribution to their 401(k), 403(b), or governmental 457 plan. The super catch-up of $11,250 replaces the standard $7,500 catch-up for those age years. This provision does not apply to IRAs.

For workers in this age range, the total 401(k) contribution is $34,750 for 2025 ($23,500 base + $11,250 super catch-up) and $35,750 for 2026 ($24,500 + $11,250).

Workers aged 50-59 or 64+ use the standard $7,500 catch-up.

For more on retirement savings strategies by decade, see our complete guide.

HSA Contribution Limits

Health Savings Accounts are available to individuals enrolled in a high-deductible health plan (HDHP). HSAs offer triple tax benefits: deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

Coverage Type 2025 Limit 2026 Limit
Self-only $4,300 $4,400
Family $8,550 $8,750
Additional catch-up (age 55+) $1,000 $1,000

After age 65, HSA funds can be withdrawn for any purpose (taxed as ordinary income, similar to a Traditional IRA). This makes HSAs a powerful supplemental retirement savings vehicle, especially for younger savers with decades of tax-free growth ahead.

Roth IRA Income Phaseouts

Roth IRA contributions are subject to income limits. If your modified adjusted gross income (MAGI) falls within the phaseout range, your allowable contribution is reduced. Above the range, direct Roth contributions are not permitted.

Filing Status 2025 Phaseout 2026 Phaseout
Single / Head of Household $150,000 - $165,000 $157,000 - $172,000
Married Filing Jointly $236,000 - $246,000 $246,000 - $256,000
Married Filing Separately $0 - $10,000 $0 - $10,000

If your income exceeds these limits, a backdoor Roth IRA strategy may be available. The mechanics and tax implications vary based on whether you have existing pre-tax IRA balances.

Traditional IRA Deduction Phaseouts

If you (or your spouse) participate in an employer retirement plan, the deductibility of Traditional IRA contributions phases out at certain income levels:

Filing Status 2025 Phaseout 2026 Phaseout
Single (active participant) $79,000 - $89,000 $83,000 - $93,000
MFJ (active participant) $126,000 - $146,000 $131,000 - $151,000

If neither spouse participates in an employer plan, Traditional IRA contributions are fully deductible regardless of income.

Standard Deduction Changes

The standard deduction increases most years with inflation. For taxpayers who do not itemize, this is the amount subtracted from adjusted gross income before calculating tax owed.

Filing Status 2025 2026
Single $15,000 $15,700
Married Filing Jointly $30,000 $31,400

Higher standard deductions mean more income is shielded from taxation. Combined with inflation-adjusted tax bracket thresholds, this can affect whether investment gains, Social Security benefits, or retirement distributions push you into a higher bracket.

Required Minimum Distribution Rules

Under current law (SECURE Act and SECURE 2.0), Required Minimum Distributions from Traditional IRAs, SEP IRAs, SIMPLE IRAs, and 401(k)s begin at age 73. Starting in 2033, the RMD age increases to 75.

The penalty for missing an RMD is 25% of the shortfall. If corrected within two years, the penalty is reduced to 10%.

Roth IRAs do not require distributions during the account holder's lifetime.

For more on RMD planning and retirement distribution strategies, see our decade-by-decade guide.

Frequently Asked Questions

What is the 401(k) contribution limit for 2026?

The 401(k) employee deferral limit for 2026 is $24,500. Workers age 50 and older can contribute an additional $7,500 catch-up, for a total of $32,000. Workers ages 60-63 can use the SECURE 2.0 super catch-up of $11,250 instead, for a total of $35,750.

What is the IRA contribution limit for 2026?

The IRA contribution limit for 2026 is $7,500 for those under 50, and $8,500 for those 50 and older ($7,500 + $1,000 catch-up). This limit applies across all Traditional and Roth IRAs combined.

What are the Roth IRA income limits for 2026?

For 2026, single filers can make full Roth IRA contributions with MAGI below $157,000. Contributions phase out between $157,000 and $172,000. For married couples filing jointly, the phaseout range is $246,000 to $256,000.

What is the HSA contribution limit for 2026?

The HSA contribution limit for 2026 is $4,400 for self-only coverage and $8,750 for family coverage. Those 55 and older can contribute an additional $1,000.

When do Required Minimum Distributions start?

Under current law, RMDs begin at age 73. Starting in 2033, the RMD starting age increases to 75.

Using These Figures in Your Planning

These figures determine how much you can save tax-advantaged each year and whether certain strategies (backdoor Roth, Roth conversions, catch-up contributions) are available to you. Reviewing them annually, ideally before year-end, helps ensure you are maximizing available retirement savings opportunities.

For related guides, see our Roth IRA contribution limits and strategies, the complete 401(k) rollover guide, our year-end financial checklist, and the most common retirement planning mistakes.

Tax Planning Retirement Planning IRA 401k HSA
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