2026 Retirement & Tax Data Update: What's New?

1) Retirement Saving: 2026 Limits

The IRS raised several retirement plan limits for 2026, creating room to save more on a tax‑advantaged basis:

• 401(k)/403(b)/457 elective deferral: $24,500 (up from $23,500 in 2025)

• Age 50+ catch‑up: $8,000 (up from $7,500)

• Defined contribution annual additions (employer + employee): $72,000

• Traditional/Roth IRA contribution: $7,500, with $1,100 catch‑up (50+)

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2) The “Super Catch‑Up” Window (Ages 60–63)

If you’ll be 60–63 in 2026, you may qualify for a $11,250 super catch‑up.

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3) Roth‑Only Catch‑Ups for High Earners: Effective January 1, 2026

Beginning this year, individuals with wages above $150,000 from their plan sponsor must make all catch‑up contributions in Roth form (pre‑tax catch‑ups aren’t allowed). Regular deferrals can still be pre‑tax or Roth, but the catch‑up portion is Roth‑only.

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4) Estate & Gift Tax: Bigger Exemptions, Same Annual Exclusion

Transfer‑tax thresholds have climbed again:

• Lifetime estate and gift exemption: $15 million per individual (2026).

• Annual gift tax exclusion: $19,000 per recipient (unchanged from 2025).

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5) Charitable Giving: Larger QCDs from IRAs and deductions for non-itemizers

• For IRA owners age 70½+, the Qualified Charitable Distribution (QCD) limit is $111,000 in 2026, enabling larger direct gifts to charities from IRAs. QCDs can also satisfy all or part of your Required Minimum Distribution (RMD)

• Non-itemizers can deduct charitable contributions up to $1,000 Single/$2,000 Married Filing Jointly