The start of a new year is a natural time to take a fresh look at your financial plan. As part of that, the IRS has released updated limits across retirement, savings, and estate planning. While these changes happen every year, recent tax legislation has introduced a few updates that are worth keeping on your radar.
As you think about the year ahead, it’s worth taking a quick look at what’s changed and whether any of these updates apply to you—especially if maximizing contributions is a goal.
1. Workplace Retirement Plans (401k, 403b, 457)
The amount you can contribute to your workplace plan has increased, allowing for a higher portion of compensation to be directed toward tax-advantaged plans.
| Contribution Type | 2025 Limit | 2026 Limit | Change |
| Employee Contribution | $23,500 | $24,500 | +$1,000 |
| Standard Catch-up (Age 50+) | $7,500 | $8,000 | +$500 |
| “Super” Catch-up (Age 60–63) | $11,250 | $11,250 | $0 |
| Total Limit (All Sources) | $70,000 | $72,000 | +$2,000 |
High-Earner Alert: If your 2025 wages were above $150,000, the IRS now requires your catch-up contributions to go into a Roth (after-tax) account.
2. SIMPLE IRAs: Tiers and “Super” Catch-ups
Recent legislation has introduced more flexibility for SIMPLE IRAs, with limits now influenced by company size:
- Smaller Teams (25 or fewer employees): You can now contribute up to $18,100.
- Mid-Sized Teams (26–100 employees): The standard limit is $17,000, though some plans may allow the higher $18,100 limit if the company provides enhanced matching.
- Catch-up (Age 50+): This has moved up to $4,000.
- Super Catch-up (Age 60–63): For those in this specific age bracket, the catch-up limit is $5,250.
3. IRAs: Income Limits & The “Backdoor” Strategy
While the base IRA limit has increased to $7,500 (plus an $1,100 catch-up for those 50+), these accounts are subject to income-based phase-outs.
- Roth IRA Phase-outs: For 2026, the ability to contribute directly to a Roth IRA begins to phase out at $153,000(Single) and $242,000 (Married Filing Jointly).
- Traditional IRA Deductions: If you or your spouse are covered by a retirement plan at work, your ability to deduct your contribution also phases out as your income rises.
- The “Backdoor Roth” Review: For those over these income limits, a “Backdoor Roth” strategy may be an option to gain Roth exposure. However, this is not suitable for everyone, particularly those with existing pre-tax IRA balances. Our team evaluates this on an individual basis to determine if it makes sense for your specific tax situation.
4. HSAs and Family Gifting
- Health Savings Accounts (HSA): Limits have risen to $4,400 for individuals and $8,750 for families.
- Annual Gift Exclusion: This remains at $19,000 per recipient for 2026. A married couple can gift $38,000 to an individual annually without using their lifetime exemption.
- Estate Tax Exemption: The federal lifetime exemption has increased to $15.0 million per individual ($30.0 million for couples), and is now a permanent fixture of the tax code.
5. Key Tax Deductions for 2026
Recent legislation has introduced several new items to consider when evaluating your tax planning options.
- Standard Deduction: This has risen to $16,100 for individuals and $32,200 for married couples.
- Charitable Giving: Even if you do not itemize, you can now deduct up to $1,000 ($2,000 for couples) in cash donations to qualified charities.
- SALT Deduction: The cap on State and Local Tax deductions has been adjusted to $40,400 for 2026, subject to income phaseouts.
- Senior Bonus Deduction: Taxpayers age 65 or older may be eligible for a new additional deduction of up to $6,000 ($12,000 for couples), subject to income limits.
Closing Thoughts
A new year often brings new rules, and we are here to help you stay informed and prepared. As you look at your plans for 2026, we invite you to reach out with any questions or if you would like help adjusting your savings rates to match the new thresholds.
As always, we are incredibly grateful for the opportunity to work with you and wish you a happy new year!
Warm regards,
Your Trusted Team at Relevé Financial Group
Nadine Thibault | Director, Advice Team, Private Wealth Advisor | CFP®, BFA™ | It is our mission to help you think differently about your wealth so you can LIVE WELLthy™ today and tomorrow.