Happy 2026!

For 2026, there are plenty of changes which impact IRA’s and 401K’s so we will just cover the major ones here. There could be additional changes later in the year of course.

For 401K/403B/457/TSP:

  • The maximum employee contribution has been increased from $23,500 to $24,500. The catch-up contribution for employees age 50 and over has been increased from $7,500 to $8,000 for a total of $32,500. The catch-up limit remains at $11,250 for active participants who are between 60 and 63 years of age. This brings the total employer plan contribution to $35,750 for these employees. In some cases, the catch-up contribution must be made to a Roth employer retirement plan.

For Traditional IRAs:

  • Contribution limit increases from $7,000 to $7,500 for 2026. The catch-up contribution for those age 50 and over has been increased to $1,100 for a total of $8,600. The income tax deductibility level has been increased. We will review with you individually as needed.

For ROTH IRAs:

  • Contribution limit increases to lower of earned income or $7,500 for each spouse. Catch-up contribution of additional $1,100 is for age 50 and over.
  • Contribution eligibility has increased:
    • Full contribution with Adjusted Gross Income (AGI) increased to $153,000 for a single taxpayer. Phase-out between $153,000 and $168,000. We can help with the phase-out math.
    • Full contribution for each with total Adjusted Gross Income (AGI) less than $242,000 for married/filing jointly taxpayers. Phase-out between $242,000 and $252,000. We can help with the phase-out math.
  • 2025 contributions (of $7,000 or $8,000 if age 50 or over) can be made until April 15, 2026. Let us know if you plan to do this so we can ensure the deposit gets applied to the correct year.

Call with questions or if we can help get these changes made for you.

Linder Financial Services is a dba of Thayer Partners LLC, (“Thayer”).  Thayer is an SEC registered investment adviser.   SEC registration does not constitute an endorsement of Thayer by the SEC nor does it indicate that Thayer has attained a particular level of skill or ability.  This material prepared by Thayer is for informational purposes only.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product.  Opinions expressed by Thayer are based on economic or market conditions at the time this material was written.  Economies and markets fluctuate.  Actual economic or market events may turn out differently than anticipated.  Facts presented have been obtained from sources believed to be reliable.  Thayer, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source.  Thayer does not provide tax or legal advice, and nothing contained in these materials should be taken as tax or legal advice.