New Year, New Gains: Your 2026 Financial Guide

February 18, 2026

The start of a new year is a natural checkpoint for your financial plan. Whether it’s reviewing your budget, gathering tax documents, or preparing for your annual meeting with your advisor, this time of year can feel overwhelming.

To help lighten the load, we’ve highlighted key items to keep top-of-mind as you approach your finances in 2026. These steps can make a meaningful difference, whether you’re enjoying retirement or just starting your financial journey.

One Key Topic to Consider → Retirement & Health Savings

The start of the year is a great time to review your savings plan and take advantage of any changes to contribution limits that may give you extra room to save.

If you haven’t historically maxed out contributions to your workplace plan, Roth or Traditional IRA, or HSA, now is a perfect time to increase your contribution rate or monthly contributions. Even a small increase of 1–2% can have a meaningful impact if applied consistently year after year.

Plan / Account	Under Age 50	Age 50–59 (or 64+) Total	Age 60–63 Total
401(k) / 403(b) / 457(b) elective deferrals	$24,500	$32,500	$35,750
SIMPLE IRA	$17,000	$21,000	$22,250
SEP IRA	Lesser of $72,000* or 25% of Salary	n/a	n/a
HSA – Individual	$4,400	$5,400 (Age 55+)	n/a
HSA – Family	$8,750	$9,750 (Age 55+)	n/a

Key Updates for 2026:

Catch-up contributions on Roth for higher-income employees: Employees aged 50+ in 401(k), 403(b), or governmental 457(b) plans who earned over $150,000 in FICA wages from a single employer in the prior year must make catch-up contributions on a Roth (after-tax) basis, unless their plan doesn’t offer a Roth option.

IRA Income Phase-Outs Increased for 2026
- Roth IRA eligibility: Contribution eligibility begins to phase out at $153,000 for single filers and $242,000 for married filing jointly, with full phase-outs at $168,000 and $252,000, respectively.
- Traditional IRA deductibility: The ability to deduct Traditional IRA contributions phases out at different income levels for individuals covered by a workplace retirement plan:
  - Single filers: $81,000 – $91,000
  - Married filing jointly (covered contributor): $129,000 – $149,000
  - Married filing jointly (contributor not covered, spouse covered): $242,000 – $252,000

Two Items to Consider: Taxes & Charitable Giving

Understanding key income thresholds and giving opportunities can help you manage costs and reduce taxes in 2026.

1. Medicare Part B Premiums (IRMAA)

Medicare Part B (and Part D) premiums are income-based. Surcharges, known as IRMAA, begin when MAGI exceeds ~$109,000 (individual) or $218,000 (joint) on your 2024 return, affecting 2026 premiums.

2. Charitable Giving Opportunities

Above-the-line deduction: Starting in 2026, taxpayers who do not itemize can deduct up to $1,000 (individual) or $2,000 (joint filers) in cash gifts to qualifying charities.

Qualified Charitable Distributions (QCDs): Individuals age 70½ and older can donate directly from an IRA, up to $111,000 per person per year. These gifts count toward required minimum distributions (RMD) but are not taxable, making them a highly tax-efficient giving strategy.

Action to consider: Combine above-the-line deductions and QCDs (if eligible) while coordinating with income planning to avoid higher Medicare premiums or tax brackets.

Three Ages to Keep in Mind for Planning

In addition to the ages we’ve discussed previously, here are three milestone birthdays that trigger key rules or opportunities:

Age 59½ — IRA Distributions Without Penalty

You can begin taking distributions from your IRA without tax penalties or special restrictions.

Bonus: Many employer plans allow in-service rollovers at age 59 ½, letting you move balances to a Roth or Traditional IRA while still working – offering additional investment flexibility and potential account consolidation.

Age 65 — Medicare Enrollment

Your Initial Enrollment Period (IEP) is 7 months: 3 months before your birth month, your birth month, and 3 months after.

This window allows you to sign up for Part A and Part B to avoid penalties or gaps in coverage.

Age 73 — Required Minimum Distributions (RMDs)

You must begin withdrawing a minimum amount from Traditional IRAs and most tax-deferred retirement accounts.

RMDs are based on account balance and life expectancy, and missing them can result in significant penalties.
Tip: Use RMDs strategically with Qualified Charitable Distributions (QCDs) to give to charity while reducing taxable income.

2026 brings meaningful adjustments to retirement savings limits, income thresholds, and milestone ages. By reviewing these now and planning ahead, you can maximize savings, avoid penalties, and take advantage of tax-efficient strategies. A little preparation today can make your financial plan simpler, smarter, and more effective throughout the year.

If you’d like help reviewing your contributions, milestone planning, or charitable giving strategies, reach out to schedule a quick check-in. Together, we can make sure your 2026 plan aligns with your goals and sets you up for a successful year.