New Limits You Need to Know for 2026

Age 50+ Catch-Up: If you are age 50 or older you may contribute an extra $8,000 catch-up amount on top of the basic limit.^[1]

Ages 60-63 "Super" Catch-Up: Workers aged 60-63 can still make a "super" catch-up contribution of $11,250 if their plan offers it.^[2] These catch-ups are permitted in addition to the annual limit, so a 62-year-old could potentially defer $35,750 ($24,500 + $11,250).

Total Contribution Cap: The combined employer + employee contributions to a defined contribution plan cannot exceed $72,000 in 2026.^[1] Catch-up contributions are not counted toward this cap.

Multiple Plans: If you participate in more than one salary-deferral plan (e.g., a 401(k) and a 403(b)), the $24,500 limit applies to the sum of your elective deferrals across plans.^[1] Government 457(b) plans have their own separate $24,500 limit, so you could max out both a 457(b) and a 401(k).

Note: SIMPLE and SARSEP plans have lower limits (not covered here), and 403(b) plans may offer additional catch-ups for long-service employees.

💡 Considerations

You can make contributions at any time during the year up to the $24,500 elective-deferral limit, and you may divide that amount between traditional and Roth accounts. Individuals aged 60-63 should check whether their employer plan includes the super catch-up provision, as adoption varies by plan. Contact your plan administrator for details about catch-up eligibility and available options.

Contribution Limit: The combined annual contribution to Traditional and Roth IRAs increases to $7,500 for 2026.^[1] The age-50 catch-up is now $1,100,^[1] making the total possible contribution $8,600 for individuals who are at least 50. You may split contributions between Traditional and Roth IRAs, but the total cannot exceed $7,500 (plus catch-up).

• Single/Head of Household: full deduction if MAGI < $81,000; partial up to $91,000; no deduction beyond $91,000.

• Married filing jointly (both covered by a plan): full deduction if joint MAGI < $129,000; phased out between $129,000-$149,000; no deduction ≥ $149,000.

• Married filing jointly (only spouse covered): phase-out range $242,000-$252,000.

• Married filing separately: phase-out $0-$10,000.

• Single/Head of Household: full contribution allowed if MAGI < $153,000; contributions phase out between $153,000-$168,000; none at or above $168,000.

• Married filing jointly: full contribution if MAGI < $242,000; phased out $242,000-$252,000; none ≥ $252,000.

• Married filing separately: phase-out $0-$10,000 (most separate filers will not be eligible).

💡 Planning Considerations

Taxpayers whose income exceeds the Roth IRA limits sometimes use a "back-door" approach, making a nondeductible Traditional IRA contribution and later converting it to a Roth IRA. Because conversions are subject to pro-rata taxation and other rules, consult a qualified tax professional before attempting this strategy. Even when a Traditional IRA contribution is nondeductible due to the income phase-outs, individuals may still contribute and track their basis for future reference.

• Married filing jointly: 50% credit if AGI is $48,500 or less; 20% credit if AGI is $52,500 or less; 10% credit if AGI is $80,500 or less.^[3]

• Head of Household: 50% credit if AGI is $36,375 or less; 20% credit if AGI is $39,375 or less; 10% credit if AGI is $60,375 or less.^[4]

• Single or Married filing separately: 50% credit if AGI is $24,250 or less; 20% credit if AGI is $26,250 or less; 10% credit if AGI is $40,250 or less.^[5]

The credit is calculated as a percentage of up to $2,000 of contributions per person. Once AGI exceeds the 10 percent thresholds ($80,500, $60,375 and $40,250 for the respective filing statuses), the credit phases out completely.

Basic Standard Deduction (2026): For taxpayers who do not itemize, the basic deduction rises to $32,200 for married couples filing jointly, $16,100 for singles and married filing separately, and $24,150 for heads of household.^[6] These amounts reduce your taxable income dollar for dollar and are scheduled to continue beyond 2025 because the OBBB made the higher deductions permanent.^[7]

Additional Deduction for Age 65 or Blindness: Individuals who are 65 or older (or blind) receive an extra amount on top of the basic standard deduction. For taxable years beginning in 2026, the additional deduction amount is $1,650 per qualifying individual.^[8] The amount is $2,050 if the taxpayer is also unmarried and not a surviving spouse.^[8] These amounts are separate from the new senior deduction described below.

New Senior Deduction: Under the OBBB, taxpayers age 65+ may claim an additional $6,000 deduction per eligible person from 2025 through 2028.^[9] Married couples where both spouses qualify can claim $12,000.^[9]

The deduction phases out for taxpayers with modified adjusted gross income (MAGI) above $75,000 if single or $150,000 if married filing jointly.^[9] The IRS has not provided a detailed phase-out formula, so taxpayers near the threshold should review official guidance for updates.

If income is below the phase-out threshold, the combined deductions could be substantial. For example, a married couple over 65 could potentially claim $32,200 + 2 × $1,650 + $12,000 = $47,500, assuming they meet all criteria.

💡 Keep in Mind

Most individuals itemize only when their deductible expenses exceed the sum of their standard deduction and any age-related add-ons. If your income is near the phase-out threshold for the senior deduction, discuss your situation with a tax professional to understand how the phase-out applies and whether any planning opportunities exist.

Age 73 for 2026: Individuals who have not started RMDs must begin by April 1 of the year after they turn 73.^[10] For example, someone born in 1953 (turning 73 in 2026) must take their first RMD no later than April 1, 2027. The RMD age applies to Traditional IRAs, SEP IRAs, SIMPLE IRAs and employer plans such as 401(k)s. Some plans allow you to delay distributions until retirement if you continue working past the required age, but this "still-working" exception varies by plan.

Future Increase to Age 75: For individuals born in 1960 or later, the RMD age increases to 75.^[11] Those born between 1951-1959 will continue using age 73.

Roth Accounts: Roth IRAs and designated Roth accounts in employer plans no longer have RMDs while the owner is alive.^[12] Beginning in 2024, Roth 401(k) accounts are exempt from RMDs just like Roth IRAs. Beneficiary (inherited) Roth accounts may have different rules.

⚠️ Avoiding Penalties

RMDs are calculated using IRS life-expectancy tables. Failure to withdraw the required amount results in an excise tax. SECURE 2.0 reduced the penalty to 25% (10% if corrected promptly), but the cost is still steep. Work with a professional to determine your distribution schedule, especially if you hold multiple plans.

Starting in 2026, the SECURE 2.0 Roth catch-up requirement takes effect. If your wages from your employer in 2025 exceed $150,000 (the threshold is indexed for inflation),^[2] then any catch-up contributions you make to your employer-sponsored retirement plan in 2026 must be Roth contributions (after-tax).

You will not be able to put catch-up dollars into the pre-tax portion of the plan. If your plan does not offer a Roth component, high-earning employees may be unable to make catch-ups at all.

Although the law originally set a $145,000 threshold and an earlier implementation date, the IRS delayed enforcement until 2026 to give employers time to add Roth features.^[2] Monitor communications from your plan administrator to see whether this rule affects you.

Disclaimer: This material is for informational and educational purposes only and should not be considered financial, legal, or tax advice. Please consult with a qualified professional for personalized guidance.

Copyright © 2026 Anthony S. Owens. All rights reserved.