2026 What Your Savings Need to Know

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2026 What Your Savings Need to Know

Oy, the fact that I am sitting down to write this blog officially means 2025 is over.  We are going to blink and wake up in a winter wonderland and be facing whatever 2026 has in store for us.  That also means it is time to get those 2026 retirement savings levels ready for the IRS’s annual inflationary bump (for once, inflation is good).  Without further ado, I present to you what you need to know going into the new year.

401(k)-

For us working stiffs who still have 401(k)’s to save into, I have some good news for you.  For 2026, the limit goes up a cool G from $23,500 to $24,500, which is always nice.  If you are 50, or turn 50, in 2026, you also get a little bump on the catch-up provision from $7,500 in 2025 to $8,000 in 2026.  Also, don’t forget that for you, 60-63 year olds, you’re still eligible for the super catch-up of an additional $11,250. 

IMPORTANT Side note here: beginning in 2026, participants aged 50 or older who earn more than $150,000 in FICA wages in 2025 must make their catch-up contributions into a Roth 401(k), not a pre-tax traditional 401(k). Remember, all this goes into effect in January, so adjust accordingly.

Traditional/Roth IRAs–

For you IRA folks, you also get a little increase from $7,000 to $7,500.  Not huge, but every little bit helps.  This amount is the same whether you are contributing to an IRA or a Roth.  But wait, there’s more!  If you are that magical 50 again, you can do a catch-up of $1,100 up from $1,000 in 2025. 

They have also increased the phase-out limits on your modified adjusted gross income for deduction eligibility.  For Roth IRAs, if single phase out starts at $153,000 and goes until $168,000.  Married filing jointly goes from $242,000-$252,000. 

If covered by a workplace retirement plan, phase out for 2026 to contribute, and get a deduction, if single is $81,000-$91,000 of MAGI.  If married filing jointly, the phase out is $129,000-$149,000.

Employer & Employee Limits–

Now, if you are a nerd like me and want to know the total amount that can go into a qualified retirement plan (which includes pre/roth dollars, employer dollars, and after-tax), you came to the right place.  In 2025, the limit was $70,000, and moving forward, they have inched that amount up to a whopping $72,000, thank you very much.  This does not include the age 50 catch-up, for what it’s worth.

Simple Plans–

Let’s not forget about you, less popular guys and gals who have SIMPLE plans.  You too get a little increase from $16,500 to $17,000 in 2026.  Additionally, you will have a catch-up for the 50-plus crew of $4,000 (up from $3,500 in 2025). 

For more details, feel free to check out the IRS website below:

https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500

Final thoughts

I know some of this seems trivial in some regards, but when it comes to investing for your future, a little bit can go a long way.  I highly suggest, if able, you look at your contribution amounts and do your best to increase year over year if able.  Going to the maximum is always nice, but not everyone currently has that luxury.  That said, even if you can increase 1% it will give you the discipline and set the stage to inch closer to your retirement dreams.

As always, stay wealthy, healthy, and happy.