Each year, the IRS updates various tax and retirement planning contribution limits for the year ahead. Staying up to date about the latest changes can help you make informed financial decisions for yourself and your family throughout the year, as well as adjust your wealth and retirement planning strategies as needed.

Here are some of the key 2026 changes to be aware of, including several provisions included in the One Big Beautiful Bill Act (OBBBA) tax legislation enacted in July 2025.

Retirement Plan Contributions 

• The annual contribution limit for qualified retirement plans, such as 401(k) and 403(b) plans, increased from $23,500 to $24,500 for 2026. The annual limit for qualified retirement plan catch-up contributions for people age 50 and over increased from $7,500 to $8,000. The limit for enhanced catch-up contributions for people age 60-63, which was introduced last year, stayed the same at $11,250.
• The annual contribution limit for traditional and Roth IRAs increased to $7,500 for 2026. The IRA catch-up contribution limit for people age 50 or older increased to $1,100.
• For anyone age 70 ½ or older, the limit on making tax-free qualified distributions to charities or nonprofits from an IRA increased to $111,000.
   

Health Savings Account Contributions

• For 2026, the maximum amount you can contribute to a health savings account (HSA) increased to $4,400 for individuals and $8,750 for families. For those 55 or older, the additional catch-up contribution limit remains at $1,000 for 2026.
   

Annual Gift Tax Exclusion and Transfer Tax Exemption

• The annual gift tax exclusion remains at $19,000 for 2026, and the estate, gift and generation-skipping transfer tax exclusion has increased to $15 million.
   

Tax Rates and Standard Deduction

• With the OBBBA extending provisions of the 2017 Tax Cuts and Jobs Act, tax rates stayed the same for 2026, while the thresholds in each bracket increased by a modest amount.
• The standard deduction increased to $16,100 for single filers, and to $32,200 for married filing jointly.
   

One Big Beautiful Bill Act Changes

The OBBBA introduced several new tax provisions for individuals who qualify. Some of the more prominent include: 

• State and Local Tax (SALT) deduction cap – The OBBBA temporarily increased the maximum SALT deduction from $10,000 to $40,000 per household for 2025-2029.
• No taxes on tips and overtime – The new law capped tipped income up to $25,000 and overtime pay up to $12,500 per individual, subject to income and occupation limitations.
• Enhanced deduction for seniors – The OBBBA introduced a new $6,000 deduction for seniors age 65 and older, which begins to phase out at incomes of $75,000 for single filers and $150,000 for joint filers, and is fully phased out with incomes of $175,000 and $250,000, respectively.
• Auto loan interest deduction – Taxpayers can now deduct up to $10,000 of loan interest for new cars assembled in the U.S., subject to income limitations.
   

Our Team is Here to Help

As always, don’t hesitate to reach out if you have any questions about these changes and what they mean for your financial and retirement planning in 2026.