Savings Considerations for 2026
By Jeff Matthews, CFP® CDFA®
Senior Financial Advisor
Contribution limits and regulations have changed for 2026. Here are some considerations that you may need to keep in mind when planning for contributions this year.
401(k) Contributions
Workers who are younger than age 50 can contribute a maximum of $24,500 to a 401(k) in 2026. That is up $1,000 from the limit of $23,500 in 2025. If you are age 50 and older, you can add an extra $8,000 per year in "catch-up" contributions, bringing your total 401(k) contributions for 2026 to $32,500. If you are aged 60-63, you can contribute an additional $11,250 for a total of $35,750.
Roth IRA
Roth IRA contributions are made on an after-tax basis. However, keep in mind that your eligibility to contribute to a Roth IRA is based on your income level. If you file taxes as a single person, your Modified Adjusted Gross Income (MAGI) must be under $153,000 for the tax year 2026, and if you're married and file jointly, your MAGI must be under $242,000 for the tax year 2026. The maximum total annual contribution for all your IRAs combined is:
- $7,500 if you're under age 50
- $8,600 if you're age 50 or older (this includes a $1,100 catch up contribution)
The maximum amount you can contribute to a traditional IRA for 2026 is $7,500 if you are younger than age 50. Workers aged 50 and older can add an extra $1,100 per year as a "catch-up" contribution, bringing the maximum IRA contribution to $8,600. You must have earnings from work to contribute to an IRA, and you cannot put more into the account than you earned.
Your 2026 IRA contributions may also be tax-deductible. If you—and your spouse, if married—do not have a retirement plan at work such as a 401(k), you can deduct the full contribution to your traditional IRA on your tax return no matter how much you earn. You have until the federal tax filing deadline to make your IRA contribution for the previous year.
Gift and Estate tax
The Internal Revenue Service has announced that the annual gift tax exclusion will remain at $19,000 per recipient for 2026—the highest exclusion amount ever. Married couples can combine their individual exclusions to gift up to $38,000 per person. Further, the annual amount that one may give to a spouse who is not a US citizen will increase to $194,000 in 2026.
In addition, the estate and gift tax exemption will be $15 million per individual for 2026 gifts and deaths, up from $13.99 million in 2025. This increase means that a married couple can shield a total of $30 million without having to pay any federal estate or gift tax.
If you want to make sure there are no financial benefits you may be overlooking when filing, contact us to review your current situation.
As an advisor and a Certified Financial Planner™ professional with over 15 years of experience, Jeff aims to help improve the financial wellbeing of his clients. He develops a plan to help reach your goals by understanding what is uniquely important to your family and you, such as sending your child to college, reaching your ideal retirement or creating a financial legacy that will live on for generations.