Whether you’re a business owner, nearing retirement, or just trying to stay ahead of taxes, here’s what’s changing in 2026, and how to make the most of it.
401(k)s and 403(b)s
These employer-sponsored plans remain one of the most powerful ways to save for retirement with pre-tax dollars (or Roth, if available).
Here’s what’s new in 2026:
- $24,500 employee deferral limit
- $72,000 total annual contribution limit (including employer match/profit-sharing)
- $8,000 catch-up contribution for those age 50+
- $11,250 special catch-up limit for ages 60–63 (if allowed by your plan)
These expanded limits create new planning opportunities — especially if you’re in your peak earning years.
Traditional and Roth IRAs
These individual retirement accounts are available whether or not you have a workplace plan.
For 2026:
- $7,500 standard contribution limit
- $1,100 additional catch-up for age 50+
- Contributions are combined across Traditional and Roth IRAs
Roth IRA Income Limits
Your ability to contribute to a Roth IRA depends on your modified adjusted gross income (MAGI). In 2026:
- Single filers:
- Full contribution if income is below $153,000
- Phases out completely at $168,000
- Married filing jointly:
- Full contribution if income is under $242,000
- Phases out at $252,000
If your income exceeds these thresholds, a backdoor Roth IRA may still allow you to contribute.
Solo 401(k) and SEP IRAs
For business owners and self-employed professionals, these plans offer high contribution limits and strong tax savings.
In 2026:
- $24,500 employee deferral
- $72,000 total contribution cap
- $8,000 catch-up contribution for those age 50+
- $11,250 special catch-up limit for ages 60–63
Want to go further? Explore the Mega Backdoor Roth Solo 401(k) strategy to add even more Roth savings power.
SIMPLE IRAs
If you run a smaller business or work for one, the SIMPLE IRA continues to be a flexible retirement option.
For 2026:
- $17,000 employee contribution limit
- $4,000 catch-up contribution for age 50+
Health Savings Accounts (HSAs)
HSAs are unique because they offer triple-tax savings — pre-tax contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
2026 limits:
- $4,400 for self-only coverage
- $8,750 for family coverage
- $1,000 catch-up contribution for age 55+
If you have a high-deductible health plan, be sure to maximize your HSA to cover future medical costs and even boost your retirement plan.
Let’s Make the Most of It
If you’d like help reviewing your strategy or making the most of your contribution limits, just let us know — we’re here to help!
Is your retirement as ready as you are?
You’ve saved for years—but turning that into steady income takes more than guesswork. A clear plan helps you avoid mistakes and enjoy retirement with confidence.
Ryan Colis
CFA, CFP®
Partner, Financial Advisor
About the Author
Ryan is a problem solver. He has a distinct ability to create a simple solution for very complex puzzles. So, naturally, he’s an integral part of our team. His favorite part of his role at Alterra is the analysis – whether analyzing a financial plan or reviewing an investment portfolio. However, the profession allows him to share that passion with clients by helping them navigate financial complexities as they collaborate on achieving their personal and financial goals.
After completing his undergraduate degree in Business Management, Ryan and Grant met by chance, developed a rapport and have been working together ever since. Ryan has continued his formal training in finance by earning his CFP and CFA designations.
The “Alterra” name was coined by joining the Latin roots “alter”, the origin of the word “altruism” with “terra” meaning earth or land. This name reflects the company philosophy of “clients before profits” and providing firmly grounded advice.