As part of your planning for next year, now is the time to review funding your retirement accounts in 2026. Recent cost of living calculations means much higher contribution limits for next year. So plan now to take full advantage of this tax benefit. Here are annual contribution limits for the more popular programs:

How to use

• Identify the the type(s) of retirement savings plans that you currently use.
  
  
• Note the annual savings limits of the plan to adjust your savings to take full advantage of the annual contributions. Remember, a missed year is a missed opportunity that does not come back.
  
  
• If you are 50 years or older, add the catch-up amount to your potential savings total.
  
  
• NEW this year:
  • There is an increase in the 401(k), 401(b), and 457 catch-up contributions you may use if you are ages 60 to 63.
  • If you are in a 401(k) program AND your income is $150,000 or more AND you are age 50 or over, your catch up contributions MUST BE made in a Roth 401(k). If your employer does not offer one, you are out of luck with this incremental contribution.
    
    
• Take note of the income limits within each plan type.
  • For traditional IRA’s, if your income is below the noted threshold, your taxable income is reduced by your contributions. The deductibility of your contributions is also limited if your spouse has access to a plan.
  • In the case of Roth IRAs, the income limits restrict who can participate in the plan.
    
    

Other ideas

If you have not already done so, also consider:

• Setting up new accounts for a spouse or dependent(s)
• Using this time as a chance to review the status of your retirement plan including beneficiaries
• Reviewing contributions to other tax-advantaged plans like Flexible Spending Accounts and Health Savings Accounts.