New IRA and 401(k) Rules Set to Reshape Retirement Saving in 2026
Let’s talk through the major changes coming to IRAs, 401(k)s, HSAs, and several other retirement accounts in 2026. These updates, driven mostly by the SECURE 2.0 Act and annual inflation adjustments, are expected to reshape how many people save — especially higher-income earners and those nearing retirement. I’ll walk you through what’s changing and why it matters, in a clear, conversational way.
One of the biggest shifts involves catch-up contributions for people aged 50 or older who earn more than $150,000 in FICA wages. Starting in 2026, these catch-up contributions must be made on a Roth basis. So instead of reducing taxable income today, contributions will be taxed upfront but withdrawn tax-free in retirement. This is a major change for high earners who’ve relied on pre-tax deductions as they approach retirement. The catch-up amount itself is rising to $8,000 in 2026, but for those above the income threshold, the pre-tax option will no longer exist. And if an employer’s plan doesn’t offer a Roth option, affected employees simply cannot make catch-up contributions at all. Anyone approaching the income cutoff is being encouraged to talk with their plan administrator or adviser now so they aren’t blindsided in January 2026.
Beyond that, overall contribution limits for 401(k), 403(b), and 457(b) plans are increasing. Workers under 50 will be allowed to contribute $24,500, while those 50 and older will have a combined limit of $32,500. People between ages 60 and 63 will continue to have access to the special “super catch-up,” bringing their limit to $35,750. These higher ceilings are meant to help people save more aggressively, especially with uncertainty around long-term Social Security funding.
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IRAs are also getting higher limits. Traditional and Roth IRA contributions will rise to $7,500, with a $1,100 catch-up for those 50 and older. The income phase-out ranges for deductible traditional IRA contributions and Roth IRA eligibility are also increasing. Married couples with only one spouse covered by a workplace plan will see slightly wider ranges as well. These adjustments mean more households may qualify for partial or full deductions.
Small business owners and the self-employed will also see expanded opportunities. Limits for SEP IRAs, SIMPLE IRAs, and Solo 401(k)s are being increased, allowing larger tax-advantaged contributions whether someone is saving for themselves or for employees.
Another interesting change is that starting in 2026, retirement plans must send at least one paper statement per year unless someone specifically opts out. It’s a small detail, but for many people who rely on physical mail for record-keeping, it will be a noticeable update.
HSAs are changing too. Contribution limits are climbing to $4,400 for individuals and $8,750 for families, with the $1,000 catch-up still available for those 55 and older. These accounts remain one of the few tools offering triple tax benefits, and the rising costs of healthcare make them even more valuable.
With all these updates, the end of 2025 will be an important checkpoint — especially for contribution deadlines, Roth conversions, and required minimum distributions. The rules for 2026 are designed to open doors for greater long-term saving, but understanding them now will make it easier to take full advantage when the new year arrives.
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