2026 Contribution Limits

401(k)s and IRAs: Take Advantage of Your Limits

Retirement accounts are a cornerstone of long-term savings, and keeping up with annual contribution limits ensures you’re making the most of tax-advantaged opportunities.

2026 401(k)/403(b)/457(b) limits: These have risen to $24,500 for the employee elective deferral component. Age 50+ has an additional contribution of $8,000 ($32,500 total) and those between 60-63 has an increased catch-up contribution amount of $11,250 ($35,750 total) for 2026.

IRA / Roth IRA: The limit for 2026 has increased to $7,500 from $7,000 in 2025 with an additional $1,100 catch-up contribution for those 50+ ($8,600 total).

• The income phase-out range for taxpayers making contributions to a Roth IRA has 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.

HSAs: Triple-Tax Benefits

If you have a high-deductible health plan (HDHP), your Health Savings Account (HSA) is one of the most powerful tools available. Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified health expenses are tax-free.

• 2026 limits: These will increase to $4,400 for individual coverage, $8,750 for family coverage. The $1,000 catch-up contribution for those 50+ remains in place. Minimum deductibles and maximum out-of-pocket thresholds for HDHPs are also increasing.

Dependent Care FSAs

This is a pre-tax benefit account that lets you set aside money from your paycheck to pay for eligible care for a qualifying child or disabled adult, so you (and your spouse, if married) can work, look for work, or attend school. It covers expenses like daycare, preschool, summer day camp, and nannies, offering significant tax savings, but it’s a “use-it-or-lose-it” account with strict rules on contributions and spending, requiring careful planning to avoid forfeiture.

• 2026 limits: You can contribute up to a maximum of $3,750 per year if you are married and file a separate tax return.  You can contribute $7,500 per year if you are married and file a joint tax return or if you file as single or head of household.

2026 Tax Notes

The tax year 2026 adjustments described below generally apply to tax returns filed in 2027. The tax items for tax year 2026 of greatest interest to most taxpayers include the following dollar amounts:

• Standard Deduction: For tax year 2026, the standard deduction increases to $32,200 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction rises to $16,100 for tax year 2026, and for heads of households, the standard deduction will be $24,150.
  • • Additional Senior Deduction: Seniors aged 65 and older can now claim an additional deduction of up to $6,000 for individuals and $12,000 for married couples if both spouses qualify. This deduction is available from 2025 through 2028 and phases out for incomes above $75,000 (single) and $150,000 (joint).
• Estate Tax Credits: Estates of decedents who die during 2026 have a basic exclusion amount of $15,000,000, up from a total of $13,990,000 for estates of decedents who died in 2025.
• Annual Exclusions Gift: the federal annual gift tax exclusion is $19,000 per recipient, the same amount as in 2025. This amount is the maximum you can give to any one person in a year without needing to file a gift tax return (Form 709) or use up any of your lifetime gift and estate tax exemption.
• Marginal Rates: For tax year 2026, the top tax rate remains 37% for individual single taxpayers with incomes greater than $640,600 ($768,700 for married couples filing jointly). The other rates are:
  • • 35% for incomes over $256,225 ($512,450 for married couples filing jointly);
    • 32% for incomes over $201,775 ($403,550 for married couples filing jointly);
    • 24% for incomes over $105,700 ($211,400 for married couples filing jointly);
    • 22% for incomes over $50,400 ($100,800 for married couples filing jointly);
    • 12% for incomes over $12,400 ($24,800 for married couples filing jointly).
    • The lowest rate is 10% for incomes of single individuals with incomes of $12,400 or less ($24,800 for married couples filing jointly)