Hello 2026: Retirement Contribution Limit Increases and Other Key Planning Updates

The start of a new year is a wonderful time to revisit your financial goals and ensure that you are taking advantage of every opportunity to save and invest in the best way.

With updated savings limits, tax laws, and financial regulations for the new year, staying informed is essential for optimizing your strategy. Here's the 2026 retirement contribution limit updates and other key planning updates worth knowing.

The IRS approved increases to almost every retirement savings account for 2026!

2026 Retirement Contribution Limits

The IRS has increased retirement contribution limits for 2026, giving you an opportunity to save more and build wealth more efficiently. Let's review the slew of new limits for the most commonly used accounts and planning strategies:

401(k), 403(b), and most 457 Plans

The annual contribution limit has increased to $24,500, up from $23,500 in 2025.

• For those aged 50 or older, you can contribute an additional $8,000 as a catch-up contribution, bringing your total limit to $32,500.

Roth and Traditional IRAs

The annual contribution limit increases to $7,500 for 2026.

• The catch-up contribution limit for individuals aged 50 and over increases to $1,100, allowing for a total contribution of $8,600.

These increases provide a valuable opportunity to accelerate your savings. If possible, adjust your contribution rates early in the year to take full advantage of the higher limits.

Further 2026 Key Updates

Beyond retirement contributions, there are a few other updates to know and keep in mind.

2026 Roth IRA Income Phaseout

• The income phase-out range for taxpayers making contributions to a Roth IRA is increased to between $153,000 and $168,000 for singles and heads of household, up from between $150,000 and $165,000 for 2025.

• For married couples filing jointly, the income phase-out range is increased to between $242,000 and $252,000, up from between $236,000 and $246,000 for 2025.

  • The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

2026 HSA Contribution Limits

For 2026, contribution limits are increased to:

• The contribution limit for individuals is now $4,400, up from $4,300 in 2025.

• Families can contribute up to $8,750, up from $8,550 in 2025.

• The catch-up contribution for those aged 55 or older remains $1,000.

If you have a high-deductible health plan (HDHP), Health Savings Accounts (HSAs) are a tax-advantaged way to save for medical expenses. HSAs are a triple tax-advantaged tool: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified expenses are tax-free. If you’re aiming for financial independence and are a low-healthcare user, let's talk about leveraging your HSA for your long-term planning.

A Final Note

As you work toward strengthening your financial security and meeting financial independence milestones, staying informed about annual updates like these and adjusting your plan as needed can make a significant difference over the long-term.

Whether you are maxing out your retirement accounts, strategically contributing to various accounts, or just optimizing your tax strategy, 2026 offers a variety of new opportunities to strengthen your plan.

If you’re ready to fine-tune your plan for the year or have questions about these updates, let’s connect. For Sage clients, updated meeting links are available in your RightCapital planning portals.

For new clients, schedule a free introductory call with Shannon to get started.

• • •

Have questions? Drop a comment on this post.

Need help building or updating your financial plan? Get in touch.

📌 Sage Financial Planning LLC is a California RIA providing values-based financial planning and financial advice in San Diego, CA and nationwide via virtual meeting platforms. Sage Financial specializes in serving those who believe in closing the wealth gap: First Generation Wealth Builders who want to change their financial family trees for the better, as well as values-based clients who want to not only achieve financial security and freedom for themselves, but who want to support their communities in meaningful ways and leave the world better than they found it.

For more information on our holistic financial planning offerings, please visit our Service Options page.

#financialplanning #money #moneymindset #goals #success #personalfinance #millennialfinance #genzmoney #womenandmoney #financialwellness #financialfreedom #CFP #moneymanagement #financetips #moneygoals #financialliteracy #financialeducation #financialindependence #FI #FIRE #financialadvisorsandiego #financialplanner #financialplannersandiego #smallbusiness #womenbusinessowner