Important Numbers for 2026: Contribution Limits, Deductions, and Tax Brackets
Tax rules are always moving, and 2026 is no exception. Staying ahead of these changes isn’t just smart—it’s essential for keeping your plan on track. Let’s break down what’s shifting with contributions, deductions, and tax brackets.
Contribution Limit Changes
Contribution limits are adjusted regularly to keep pace with inflation and policy changes. Understanding these updates is key to maximizing your savings opportunities.
Contribution Limits for 2025:
- 401(k), 403(b), 457(b)
- Employee deferral: $23,500
- Catch-up (Age 50+): $7,500
- “Super” catch-up (Ages 60-63): $11,250
- SIMPLE Retirement Plans (IRA & 401(k))
- Employee Deferral: $16,500
- Catch-up (Age 50+): $3,500
- “Super” catch-up (Ages 60-63): $5,250
- SEP IRA
- Annual additions limit (Employer-only): $70,000
- IRA (Traditional and Roth)
- Base: $7,000
- Catch-up (Age 50+): $1,000
- HSA (Health Savings Account)
- Individual: $4,300
- Family: $8,550
- Catch-up (Age 55+): $1,000
Contribution Limits for 2026:
- 401(k), 403(b), 457(b)
- Employee deferral: $24,500
- Catch-up (Age 50+): $8,000
- “Super” catch-up (Ages 60-63): $11,250
- SIMPLE Retirement Plans (IRA & 401(k))
- Employee Deferral: $17,000
- Catch-up (Age 50+): $4,000
- “Super” catch-up (Ages 60-63): $5,250
- SEP IRA
- Annual additions limit (Employer-only): $72,000
- IRA (Traditional and Roth)
- Base: $7,500
- Catch-up (Age 50+): $1,100
- HSA (Health Savings Account)
- Individual: $4,400
- Family: $8,750
- Catch-up (Age 55+): $1,000
Important Notes:
- Contribution limits change annually. If you’re a max contributor, be sure to verify your numbers to keep pace.
- Not all plans offer the new super catch-up contribution option, so it’s important to confirm with your plan provider before counting on it.
- Super catch-ups are not added on top of the regular catch-up; they replace the normal catch-up for those few years.
- Some SIMPLE plans can have higher elective deferral limits (up to $18,100 in 2026) depending on plan design, but the standard IRS limit is $17,000 as stated above.
- 403(b) and 457(b) plans have special rules that can allow even higher contribution amounts. If you would like to learn more, please reach out to us!
Standard Deduction Updates
The standard deduction gets a refresh almost every tax year. While most taxpayers take it, itemizing can make sense if you have significant mortgage interest, state and local taxes, or charitable contributions.
Standard deduction numbers for 2025:
$15,750: Single and Married Filing Separately
$23,625: Head of Household
$31,500: Married Filing Jointly
Standard deduction numbers for 2026:
$16,100: Single and Married Filing Separately
$24,150: Head of Household
$32,200: Married Filing Jointly
Tax Bracket Updates
Your income doesn’t just determine how much you make—it also affects the tax bracket you fall into. Discovering whether your earnings put you in a different bracket this year can guide your financial decisions and potentially optimize your tax situation.
2025 Tax Brackets:
2026 Tax Brackets:
In addition to the above items, it’s important to be mindful of the changes implemented from the One Big Beautiful Bill Act (OBBBA). To learn more or refresh what you know, click here.
Final Thought:
We’ve covered a lot—updated tax brackets, higher standard deductions, and new contribution limits. These changes aren’t just numbers; they’re opportunities to fine-tune your plan and keep more of what you earn. The key is making sure your strategy reflects the latest rules before they take effect. If you’re ready to turn these updates into action, let’s connect and make sure your plan is set for 2026 and beyond.
About Strategic
Founded in 1979, Strategic is a leading investment and wealth management firm managing and advising on total client assets of over $2.5 billion.
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