Financial advice that starts with a plan.
We help you do more with what you’ve earned.
Every year, the IRS and Social Security Administration adjust key financial planning numbers for inflation. These changes affect how much you can save, how much you’ll owe, and how you should be thinking about your money.
Here are the most numbers for 2026.
Retirement Account Contribution Limits
401(k), 403(b), and 457 Plans
The employee deferral limit for 2026 is $24,500, up from $23,500 in 2025.
If you’re 50 or older, you can contribute an additional $8,000 in catch-up contributions, up from $7,500 last year. That brings your total employee contribution limit to $32,500.
The super catch-up for those aged 60 to 63 remains at $11,250, giving that group a total employee contribution limit of $35,750.
The total defined contribution plan limit (employee + employer contributions combined) is now $72,000, up from $70,000 in 2025. The eligible compensation limit is $360,000.
For 403(b) plans, there’s also an additional catch-up of $3,000 for those with 15+ years of service.
New for 2026: If you earned more than $150,000 in W-2 wages in 2025, your catch-up contributions must be made as Roth (after-tax) contributions. This is a SECURE 2.0 change that officially takes effect this year. Check with your HR department to confirm your plan has been updated to accommodate this.
IRA and Roth IRA
The IRA contribution limit increases to $7,500, up from $7,000 in 2025. This is the first increase in several years.
The catch-up contribution for those 50 and older increases to $1,100, up from $1,000.
Roth IRA income phase-out ranges:
- Single/Head of Household: $153,000 to $168,000 (up from $150,000 to $165,000)
- Married Filing Jointly: $242,000 to $252,000 (up from $236,000 to $246,000)
Traditional IRA deductibility phase-outs (if covered by a work plan):
- Single: $81,000 to $91,000
- Married Filing Jointly: $129,000 to $149,000
- MFJ (if only spouse is covered): $242,000 to $252,000
If your income exceeds the Roth thresholds, the Backdoor Roth IRA strategy remains an option. We walk clients through this regularly.
Do more with what you’ve earned.
You’ve worked hard to get here. We build financial plans around your actual life so you can make the most of it.
SIMPLE IRA
- Contribution limit: $17,000 ($18,100 if eligible for the 10% increase)
- Catch-up (age 50+): $4,000 ($3,850 if eligible for the 10% increase)
- Catch-up (ages 60-63): $5,250
SEP IRA
- Maximum contribution: 25% of compensation (adjusted net earnings if self-employed)
- Contribution limit: $72,000
- Minimum compensation: $800
HSA (Health Savings Accounts)
For those with a high-deductible health plan:
- Self-only coverage: $4,400 (up from $4,300)
- Family coverage: $8,750 (up from $8,550)
- Catch-up (age 55+): $1,000 (unchanged)
Minimum annual deductible: $1,700 (individual) / $3,400 (family). Maximum out-of-pocket: $8,500 (individual) / $17,000 (family).
HSAs remain one of the most tax-efficient savings vehicles available. Contributions are tax-deductible, growth is tax-free, and qualified withdrawals are tax-free. If you’re not maxing this out, you should be.
Other Savings Vehicles
- Qualified Charitable Distribution (QCD): $111,000 per year (for those 70.5+)
- Qualified Longevity Annuity Contract (QLAC): $210,000 lifetime limit
- Defined Benefit Plan (max annual benefit): $290,000
- Health Care FSA: $3,400 ($680 carryover limit)
- Dependent Care FSA: $7,500
- Trump Account (under 18): $5,000
Tax Brackets and Standard Deduction
2026 Federal Income Tax Brackets (Married Filing Jointly)
| Tax Rate | Taxable Income |
|---|---|
| 10% | $0 to $24,800 |
| 12% | $24,801 to $100,800 |
| 22% | $100,801 to $211,400 |
| 24% | $211,401 to $403,550 |
| 32% | $403,551 to $512,450 |
| 35% | $512,451 to $768,700 |
| 37% | Over $768,700 |
2026 Federal Income Tax Brackets (Single)
| Tax Rate | Taxable Income |
|---|---|
| 10% | $0 to $12,400 |
| 12% | $12,401 to $50,400 |
| 22% | $50,401 to $105,700 |
| 24% | $105,701 to $201,775 |
| 32% | $201,776 to $256,225 |
| 35% | $256,226 to $640,600 |
| 37% | Over $640,600 |
Standard Deduction
- Married Filing Jointly: $32,200
- Single: $16,100
- Additional deduction for age 65+ or blind: $1,650 (married) / $2,050 (unmarried)
New Senior Deduction: For tax years 2025 through 2028, there is an additional $6,000 deduction for individuals age 65 and older. This phase-out occurs between $75,000 and $175,000 for single filers and between $150,000 and $250,000 for joint filers.
Itemized Deductions
- SALT: $10,000 to $40,400 (phaseout: $505,000 to $605,000 for single or MFJ)
Note: Even with the SALT deduction phaseout, itemizers are still entitled to a minimum $10,000 SALT deduction.
Non-Itemized Below-the-Line Deductions
- Charitable: $1,000 (single) / $2,000 (MFJ). No phaseout.
- Overtime: $12,500 (single) / $25,000 (MFJ). Phaseout: $150,000-$275,000 (single), $300,000-$550,000 (MFJ).
- Tips: $25,000 (single or MFJ). Phaseout: $150,000-$400,000 (single), $300,000-$550,000 (MFJ).
- Car Loan Interest: $10,000 on US-assembled vehicles. Phaseout: $100,000-$150,000 (single), $200,000-$250,000 (MFJ).
- QBI: Up to 20% of qualified business income ($400 minimum). SSTB phaseout: $201,750-$276,750 (single), $403,500-$553,500 (MFJ).
Long-Term Capital Gains Tax
Rates apply to long-term capital gains and qualified dividends, based on taxable income:
| Filing Status | 0% Rate | 15% Rate | 20% Rate |
|---|---|---|---|
| MFJ | Up to $98,900 | $98,901 to $613,700 | Over $613,700 |
| Single | Up to $49,450 | $49,451 to $545,500 | Over $545,500 |
The 3.8% Net Investment Income Tax continues to apply for individuals with MAGI above $200,000 ($250,000 for joint filers). These thresholds are not indexed for inflation.
Alternative Minimum Tax
| MFJ | Single | |
|---|---|---|
| Exemption Amount | $140,200 | $90,100 |
| 28% Rate Applies to Income Over | $244,500 | $244,500 |
| Exemption Phaseout Threshold | $1,000,000 | $500,000 |
| Exemption Elimination | $1,280,400 | $680,200 |
Tax Credits for Children and Education
Child Tax Credit
- $2,200 per child under 17 ($1,700 refundable)
- Phaseout begins at $200,000 (single) / $400,000 (MFJ)
Child and Dependent Care Credit
- 20-50% of the first $3,000 in qualified expenses (or $6,000 for 2+ children)
Education Credits
- American Opportunity: 100% of first $2,000 + 25% of next $2,000. Phaseout: $80,000-$90,000 (single), $160,000-$180,000 (MFJ).
- Lifetime Learning: 20% of first $10,000. Phaseout: $80,000-$90,000 (single), $160,000-$180,000 (MFJ).
- Student Loan Interest: Up to $2,500. Phaseout: $85,000-$100,000 (single), $175,000-$205,000 (MFJ).
Do more with what you’ve earned.
You’ve worked hard to get here. We build financial plans around your actual life so you can make the most of it.
Social Security
The 2026 COLA (Cost-of-Living Adjustment) is 2.8%.
The Social Security wage base increases to $184,500, up from $176,100. Medicare has no limit.
Full retirement age is 67 for those born in 1960 or later.
Earnings limits if collecting Social Security before full retirement age:
- Below full retirement age: $24,480/year (benefits reduced $1 for every $2 earned above this)
- Year you reach full retirement age: $65,160/year (benefits reduced $1 for every $3 earned above this)
- At or above full retirement age: No limit
Social Security taxation (provisional income thresholds):
| Taxable Portion | MFJ | Single |
|---|---|---|
| 0% taxable | Under $32,000 | Under $25,000 |
| 50% taxable | $32,000 to $44,000 | $25,000 to $34,000 |
| 85% taxable | Over $44,000 | Over $34,000 |
Medicare Premiums & IRMAA
The standard Part B premium for 2026 is $202.90/month.
Part A premiums: Less than 30 credits: $565/month. 30-39 credits: $311/month.
Higher-income earners pay IRMAA surcharges based on 2024 MAGI:
| MFJ | Single | Part B Surcharge | Part D Surcharge |
|---|---|---|---|
| $218,000 or less | $109,000 or less | None | None |
| $218,001 – $274,000 | $109,001 – $137,000 | $81.20 | $14.50 |
| $274,001 – $342,000 | $137,001 – $171,000 | $202.90 | $37.50 |
| $342,001 – $410,000 | $171,001 – $205,000 | $324.60 | $60.40 |
| $410,001 – $749,999 | $205,001 – $499,999 | $446.30 | $83.30 |
| $750,000 or more | $500,000 or more | $487.00 | $91.00 |
Estate and Gift Tax
- Lifetime exemption: $15,000,000 per individual (up from $13,990,000)
- Estate tax rate: 40%
- Annual gift tax exclusion: $19,000 per recipient
What This Means for You
The biggest takeaway for 2026 is that contribution limits went up across the board. If you’re not already maxing out your 401(k), IRA, and HSA, this is the year to get there.
For high earners, the new Roth catch-up mandate is worth paying attention to. If you earned more than $150,000 in 2025, your catch-up dollars are now Roth only. That’s not necessarily bad (Roth growth is tax-free), but it changes the math on your current-year tax situation.
The new below-the-line deductions for overtime, tips, and car loan interest are also worth noting. These are available even if you take the standard deduction.
For those approaching retirement, the $15 million estate tax exemption is at a historically high level. We’ve been working with clients on strategies to take advantage of this while it lasts.
If you have questions about how these changes affect your plan, we’re here to help.
Frequently Asked Questions
The 2026 401(k) employee deferral limit is $24,500. If you’re 50 or older, you can contribute an additional $8,000 in catch-up contributions for a total of $32,500. Those aged 60 to 63 can contribute up to $35,750 with the super catch-up.
The 2026 standard deduction is $32,200 for married filing jointly and $16,100 for single filers. There is an additional deduction of $1,650 (married) or $2,050 (single) for those 65 and older.
Social Security benefits increased by 2.8% for 2026. The maximum taxable earnings subject to Social Security tax increased to $184,500.
The IRA and Roth IRA contribution limit for 2026 is $7,500, up from $7,000 in 2025. The catch-up contribution for those 50 and older is $1,100.
The 2026 estate tax exemption is $15,000,000 per individual, up from $13,990,000 in 2025. The annual gift tax exclusion is $19,000 per recipient.
