As part of your planning for next year, now is the time to review the contributions to fund your retirement accounts in 2026. Recent cost-of-living calculations mean much higher contribution limits for next year. So plan now to take full advantage of this tax benefit. Here are the annual contribution limits for the more popular programs:

How to use retirement contributions

• Identify the type(s) of retirement savings plans that you currently use.
• Note the plan’s annual savings limits to adjust your savings and take full advantage of the yearly 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 for 2026

• There is an increase in the 401(k), 403(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 IRAs, 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.
• For Roth IRAs, income limits restrict who can participate in the plan.

Retirement planning

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.

Contact our RRBB advisors for more information or if you are ready to plan your 2026 retirement contributions.