We’re in the middle of the 2025 tax season right now. Although you may be focused on calculating your deductions from fiscal year 2025, it may also be the best time to consider your tax- saving deductions for 2026!
For 2026, retirement plan contribution limits have increased across the board for tax-advantaged accounts, some significantly. These represent not only an opportunity to pump up your total IRA savings and contributions but also to optimize your tax savings for this year.
Here is a summary of what has changed. For 401(k), 403(b), 457(b), and Thrift Savings Plan (for federal employees and the uniformed services) retirement accounts, the employee contribution limit has increased by $1,000 (from $23,500 in 2025 to $24,500 in 2026). Workers who are at least 50 years old can take advantage of the “catch-up” provisions, which have increased by $500 to $8,000—allowing them to add $8,000 to the $24,500 contribution for 2026 (a total of $32,500). For those between the ages of 60 and 63, a “super catch-up” provision allows for an extra $11,250 to be added to the basic limit (or a total of $35,750). However, starting in 2026, if you earn about $150,000 or above, any catch-up contributions cannot be made pre-tax—they must be made as Roth contributions, which are taxed now, not at the time of withdrawal.
For individuals with traditional and Roth IRA accounts, the standard contribution limit has risen to $7,500, with a single catch-up option of an additional $1,100 for those ages 50 and above.
These new retirement plan contribution limits can be a bit confusing. At Isakov Planning Group, we are happy to discuss how these increases can help you save on next year’s taxes, as well as maximizing the money you save for retirement.
Contact us today for a free, no-obligation consultation!