2026 Money Updates You Should Actually Know

Transcript

Hey everyone, happy new year. It's officially 2026, and I want to walk you through a few good-to-know money updates as we head into the new year.

First up, retirement contribution limits. Every year the IRS sets limits on how much you're allowed to put into retirement accounts. They do this because these accounts come with tax benefits, and without limits people could theoretically put unlimited money in and avoid a lot of taxes. Over time the IRS raises these limits to keep up with inflation, and in 2026 we did get some increases. If you contribute to a 401(k) or 403(b), you can now put up to $24,500, which is up from $23,500 in 2025.

If you're age 50 or older, the IRS lets you put in extra money each year. This is called a catch-up contribution, and it gives you more room to save as retirement gets closer. For many years there was just one catch-up, and now we have two. Recently a second, larger catch-up was added, and here's how it works. If you're 50 to 59, or 64 and older, you can put an additional $8,000 into your 401(k) or 403(b). If you're between the ages of 60 and 63, this is the second catch-up, or what's called a super catch-up, and you can put in an additional $11,250. Both of these are above and beyond that $24,500 number.

Now you might be saying, "Nick, that was Spanish." I'm sorry. This can get a little confusing. I'm learning to explain things more simply, but there are just some things in finance where it's really hard.

Now let's talk about IRAs and Roth IRAs, or individual retirement accounts. For 2026 you can contribute up to $7,500, which is up from $7,000 in 2025, so just a $500 increase. If you're age 50 or older, you also get a catch-up for IRAs and Roth IRAs, an additional $1,100 for a total of $8,600. I feel like every time I say catch-up, I'm saying ketchup, like ketchup and mustard. It's just in my head.

One important reminder with Roth IRAs: there are income limits. For single filers it's once adjusted gross income hits $153,000, and for married couples it's $242,000. All this means is that once your adjusted gross income hits this number, the IRS starts to limit how much you can directly put into a Roth IRA. But there are still planning strategies available to add more Roth dollars depending on your situation.

Next, HSAs, or health savings accounts. If you have self-only coverage you can put up to $4,400, and if you have family coverage you can put up to $8,750.

Now, you may have heard some buzz around Trump accounts, especially if you have young kids. At a high level, yes, the $1,000 government contribution is real. This applies to children born between January 1st, 2025 and December 31st, 2028, and a parent or guardian must enroll the child. The official rollout is expected later this year, I think around July. There is a website on the screen if you want more information, and that's also where you'll set up the account. For now this is mostly an awareness item, not something most families need to rush and do. We'll of course keep our tabs on it.

And finally, a quick tax update. The standard deduction was increased for 2026. For married couples it's now $32,200, and for single filers it's $16,100. There are also new temporary deductions. I say temporary because they were part of the One Big Beautiful Bill Act and are set to expire eventually. These are for tips, overtime pay, and a new senior deduction of $6,000 for single filers and $12,000 for married filing jointly. I'm not going to go too deep here, so talk to your CPA and see if these matter for you.

Other than that, there you have it. I know, invigorating stuff. If you ever want help connecting these updates and rules to your real life, that's exactly what we do. Happy New Year. I'll see you soon.

Hosted byNick GeorgeCFP®, ChFC®, CLU®, IWA™FounderView bio →

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