We Do Books™ Blog
Michael DiSabatino of We Do Books™ shares expert insights to help you unlock your business's full potential by delivering proven strategies for maximizing tax savings, streamlining operations, and driving sustainable growth.
The information provided on this site is for general informational purposes only and should not be construed as professional financial, tax, or legal advice. For advice tailored to your specific situation, we recommend consulting with a qualified professional.
The information provided on this site is for general informational purposes only and should not be construed as professional financial, tax, or legal advice. For advice tailored to your specific situation, we recommend consulting with a qualified professional.
3 minutes reading time
(546 words)
Plan Your 2026 Retirement Contributions
As part of your planning for next year, now is the time to review funding your retirement accounts in 2026. Recent cost of living calculations means much higher contribution limits for next year. So plan now to take full advantage of this tax benefit. Here are annual contribution limits for the more popular programs:
| Plan | 2025 | 2026 | Change | |
|---|---|---|---|---|
| SIMPLE IRA | Annual Contribution 50 or over catch-up |
$16,500 Add $3,500 |
$17,000 Add $4,000 |
+$500 +$500 |
| 401(k), 403(b), and 457 | Annual Contribution 50 or over catch-up 2025 catch-up: Ages 60–63 |
$23,500 Add $7,500 Add $11,250 |
$24,500 Add $8,000 Add $11,250 |
+$1,000 +$500 No Change |
| Traditional IRA | Annual Contribution 50 or over catch-up |
$7,000 Add $1,000 |
$7,500 Add $1,100 |
+$500 +$100 |
| AGI Deduction Phaseouts: | Single; Head of Household | 79,000 – 89,000 | 81,000 – 91,000 | +$2,000 |
| Joint nonparticipating spouse | 236,000 – 246,000 | 242,000 – 252,000 | +$6,000 | |
| Joint participating spouse | 126,000 – 146,000 | 129,000 – 149,000 | +$3,000 | |
| Married Filing Separately (any spouse participating) |
0 – 10,000 | 0 – 10,000 | No Change | |
| Roth IRA | Annual Contribution 50 or over catch-up |
$7,000 Add $1,000 |
$7,500 Add $1,100 |
+$500 +$100 |
| AGI Deduction Phaseouts: | Single; Head of Household | 150,000 – 165,000 | 153,000 – 168,000 | +$3,000 |
| Married Filing Jointly | 236,000 – 246,000 | 242,000 – 252,000 | +$6,000 | |
| Married Filing Separately | 0 – 10,000 | 0 – 10,000 | No Change | |
| Rollover to Roth Eligibility | Joint, Single, or Head of Household | No AGI Limit | No AGI Limit | No AGI Limit |
| Married Filing Separately | Allowed / No AGI Limit | Allowed / No AGI Limit | Allowed / No AGI Limit | |
How to use:
- Identify the type(s) of retirement savings plans that you currently use.
- Note the annual savings limits of the plan to adjust your savings to take full advantage of the annual contributions. Remember, a missed year is a missed opportunity that does not come back.
- If you are 50 years or older, add the catch-up amount to your potential savings total.
- NEW this year:
- There is an increase in the 401(k), 401(b), and 457 catch-up contributions you may use if you are ages 60 to 63.
- If you are in a 401(k) program AND your income is $150,000 or more AND you are age 50 or over, your catch up contributions MUST BE made in a Roth 401(k). If your employer does not offer one, you are out of luck with this incremental contribution.
- Take note of the income limits within each plan type.
- For traditional IRA’s, if your income is below the noted threshold, your taxable income is reduced by your contributions. The deductibility of your contributions is also limited if your spouse has access to a plan.
- In the case of Roth IRAs, the income limits restrict who can participate in the plan.
Other ideas:
If you have not already done so, also consider:
- Setting up new accounts for a spouse or dependent(s)
- Using this time as a chance to review the status of your retirement plan including beneficiaries
- Reviewing contributions to other tax-advantaged plans like Flexible Spending Accounts and Health Savings Accounts.
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