As we look forward to 2026, now is a great time to review the changes that will impact your retirement plan contribution limits, gifting limits, Social Security increase and Medicare premium changes for the next year. Here’s a summary of upcoming changes, which can help you assess how they might fit within your overall financial life plan.
IRA Contribution Limits
The maximum amount you can contribute to a Traditional or Roth IRA has increased from $7,000 to $7,500 for 2026 (or 100% of your earned income, if less). The catch-up contribution for individuals aged 50 or older is has increased to $1,100 from $1,000. You can contribute to both types of IRAs, but total contributions cannot exceed the $7,500 (plus catch-up, if applicable) annual limit across accounts. Keep in mind that income limits and tax deductibility rules apply to both types of IRAs.
Traditional IRA Income Limits
The income limits for deducting Traditional IRA contributions increased for 2026:
- Single/Head of Household: You can fully deduct your IRA contribution if your modified adjusted gross income (MAGI) is less than $81,000 (up from $79,000 in 2025).
- Married Filing Jointly: The full deduction is available if your MAGI is less than $129,000 (up from $126,000 in 2025). If your spouse is covered by a retirement plan and you are not, you can fully deduct your IRA contribution with a MAGI of $242,000 or less (up from $236,000 in 2025).
Roth IRA Income Limits
Roth IRA contribution eligibility income limits have increased as well:
- Single/Head of Household: Full contributions are allowed with a MAGI less than $153,000 (up from $150,000 in 2025).
- Married Filing Jointly: Full contributions are allowed with a MAGI less than $242,000 (up from $236,000 in 2025).
Employer Retirement Plans
For 2026, elective deferral limits for 401(k), 403(b), most 457 plans, and the Federal Thrift Savings Plan have increased:
- Contribution Limit: $24,500 (up from $23,500 in 2025).
- Catch-up Contribution: For those aged 50 and older, the catch-up limit is $8,000 ($32,500 total). Additionally, workers aged 60 to 63 can contribute an enhanced catch-up contribution of $11,250 ($35,750 total) due to the Secure 2.0 Act’s new catch-up provision.
For SIMPLE IRAs, the contribution limit is now $17,000 with a $4,000 catch-up limit ($21,000 total) for those aged 50 and older. Additionally, workers aged 60 to 63 can contribute an enhanced catch-up contribution of $9,250 ($26,250 total) due to the Secure 2.0 Act’s new catch-up provision.
Health Savings Account (HSA) Limits
For 2026, contribution limits for HSAs are higher:
- Individual Coverage: $4,400 (up from $4,300 in 2025)
- Family Coverage: $8,750 (up from $8,550 in 2025)
- Catch-Up Contribution: Individuals aged 55 or older can contribute an additional $1,000
Qualified Charitable Distributions (QCD)
The QCD limit, which was previously capped at $100,000, began to adjust annually for inflation starting in 2024. The limit for 2026 is set at $115,000 per person, allowing individuals over 70.5 to make tax-advantaged charitable donations from IRAs.
Medicare and Social Security Adjustments
The Social Security cost-of-living adjustment (COLA) is 2.8% for 2026. Medicare premiums have some increases as well, as Medicare Part B increased to $202.90 per month. Information on all 2026 premiums can be found on the Center for Medicare & Medicaid Services (CMS) site as rates are finalized.
Annual Gift Tax Limit
For 2026, the gift tax limit is the same as 2025, $19,000 per individual gift. Married couples can gift up to $38,000 jointly without triggering gift tax filing requirements.
If you have any questions about how these new 2026 figures might affect your financial life plan, please contact your JNBA Advisory Team.
JNBA is not an accountant and no portion of the above should be construed as accounting advice. All accounting issues should be addressed with an accounting professional of your choosing. JNBA is not an agent of the Social Security Administration. All claiming strategies and benefits must be verified and accepted by the Social Security Administration. JNBA is not an agent of The Centers for Medicare & Medicaid Services. All claiming strategies and benefits must be verified and accepted by The Centers for Medicare & Medicaid Services. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from JNBA Financial Advisors, LLC. Please see important disclosure information at jnba.com/disclosure.
