As we enter 2026, several financial planning benchmarks are changing – from tax brackets to retirement plan contribution limits and IRMAA surcharge MAGI thresholds. These updates can affect everything from how much you save in your retirement accounts this year to what you may pay in taxes or Medicare premiums. Below is a brief overview of some of the most notable changes for the upcoming year (as well as a link to download our 2026 Important Numbers Guide).
Federal Income Tax Brackets Adjusted for Inflation
Tax brackets increased across the board in 2026, as they do each year, providing some more room before your income moves into higher tax rates. This impacts planning for Roth conversions, income timing, charitable giving, and tax efficient distributions overall.
Standard Deduction Adjustments
The standard deduction saw modest increases:
- Married Filing Jointly: from $31,500 to $32,200
- Additional deduction for those 65+ or blind: $1,600 to $1,650
- Single: from $15,750 to $16,100
- Additional deduction for those 65+ or blind: $2,000 to $2,050
Retirement Plan Contribution Limits Increased
Several retirement savings vehicles received meaningful bumps:
- 401(k)/403(b)/457 Elective Deferrals: $23,500 to $24,500
- Age 50+ Catch Up: $8,000Ages 60-63 Catch Up: Remains unchanged at $11,250
- 403(b) Additional Catch Up (15+ Years of Service): Remains unchanged at $3,000
- Traditional & Roth IRA Contribution Limit: $7,000 to $7.500
- IRA Catch Up (Age 50+): $1,000 to $1,100
These are just a preview to some of the changes occurring in 2026 – be sure to check out our 2026 Important Numbers Guide below to see many others. Keep in mind this guide does include all changes stemming from the OBBBA, and while the various updates may seem small individually, together they shape the opportunities available for tax planning, retirement savings, and long-term financial strategies in 2026. If you have any questions about how any of these numbers may affect your financial strategy, we’re here to help.
Click here to download our 2026 Important Numbers Guide.
And before we turn the page to 2026, be sure to read our recently published 2025 Year-End Financial Game Plan to further help prepare for the year ahead.
Important Disclosures:
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