Most taxpayers have no idea that 2026 is bringing some of the biggest shifts we’ve seen in retirement plans in years. These changes determine how much you can save, what is deductible, and whether your catch-up contributions will still give you the tax benefits you expect. If you want to stay ahead of the IRS, here are the updates that matter.
In 2026, anyone fifty or older who earned more than $150,000 in FICA wages the year before will be required to make all catch up contributions as Roth. That means no immediate deduction on the extra eight thousand you put into your employer plan. You pay tax now and get tax free withdrawals later. If your employer plan does not offer a Roth option, you can’t make catch up contributions at all. Review your income and your plan options now so you’re not surprised.
The IRS is raising limits across all employer plans in 2026. For most people, this just means more room to save. For business owners, it’s an opportunity to increase deferrals and reduce taxable income in a high earning year. If you’re 50 or older, your total limit increases even more when you combine the regular employee limit and the higher catch up amount. If you’re 60 through 63, you still get the special super catch up contribution. These are some of the best tax-favorable buckets available.
The standard IRA contribution increases again in 2026, and the catch up for taxpayers 50 and older increases as well. The income phaseout ranges for deducting a traditional IRA or contributing to a Roth IRA also move higher. This is critical for married couples where one spouse has a workplace retirement plan and the other does not. Your modified adjusted gross income determines whether the IRA contribution is deductible, partially deductible, or nondeductible. Higher limits and wider phaseouts mean more room to plan.
Retirement plans like the Solo 401(k), SEP IRA, and SIMPLE IRA all receive higher contribution limits in 2026. For many small business owners, this is the most powerful way to reduce income in a big year. A Solo 401(k) allows both an employee contribution and an employer contribution, and the combined limit rises again. SIMPLE plans also gain a higher standard limit and higher catch up for taxpayers fifty and older. These increases give business owners more flexibility and more tax savings when their business hits stride.
Beginning in 2026, employer plans such as 401(k)s must mail at least one paper statement per year unless you opt out and choose electronic only. It’s a small change, but worth noting for business owners who administer their own plans and for taxpayers who prefer electronic delivery. Expect a printed statement in your mailbox unless you actively decline it.
HSA qualified health plans receive higher contribution limits, higher out of pocket caps, and higher family coverage limits in 2026. For anyone enrolled in a high deductible health plan, this is free money in the form of a triple tax benefit. Contributions are deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax free. Taxpayers 55 and older retain the additional catch up contribution as long as they are not enrolled in Medicare. HSA contributions continue to be one of the smartest long term planning moves available.
These 2026 changes are not small technical updates. They directly impact how much you can save, what is deductible, and how you should structure your retirement plan next year. If you want to get ahead of the rules rather than chase them later, my team at Directed IRA can walk you through the right strategy for your situation. They will review your income, your plan options, your Roth opportunities, and help you build a contribution plan that actually saves you money. This is how you stay proactive and keep control of your retirement plan instead of letting the IRS take the lead.