2026 key financial numbers that you need to know
January 2026
- Key Insights
-
- 2025 contribution limits for retirement accounts have increased—including 401(k)s, 403(b)s, Traditional and Roth IRAs, and SIMPLE IRAs.
- Beginning in 2026, catch-up contributions for workers who had wages from their plan sponsor above $150,000 in 2025 must be made to Roth accounts.
- Annual retirement benefit amounts for Social Security are about 57% higher if taken at age 70 rather than starting them when eligible at age 62.
Limits on retirement plan elective deferrals and IRA contributions
| Plan | Under age 50 | Age 50 and older |
|---|---|---|
| 401(k), 403(b), 457(b), TSP1 | $24,500 ($23,500 for 2025) | $32,500, or $35,750 for workers age 60 to 632 ($31,000, or $34,750 for workers age 60 to 63 in 2025) |
| Traditional and Roth IRAs | $7,500 ($7,000 for 2025) | $8,600 ($8,000 for 2025) |
| SIMPLE IRA and SIMPLE 401(k) | $17,000 ($16,500 for 2025) | $21,000, or $22,250 for workers age 60 to 63 ($20,000, or $21,750 for workers age 60 to 63 in 2025) |
Income limits for Roth IRA contributions3
| Filing status | Eligibility |
|---|---|
| Single or Head of Household | Phased out: $153,000–$168,0005 ($150,000–$165,000 for 2025) |
| Married Filing Jointly or Qualifying Widow(er)4 | Phased out: $242,000–$252,0005 ($236,000–$246,000 for 2025) |
Income limits (MAGI)5 for Traditional IRA deductibility6
| Filing status | Status |
Deductibility |
|---|---|---|
| Single or Head of Household | Not covered by an employer retirement plan | Full |
| Covered by an employer retirement plan | Phased out: $81,000–$91,000 ($79,000–$89,000 for 2025) | |
| Married Filing Jointly7 | Neither you nor your spouse is covered by an employer retirement plan | Full |
| You are not covered by an employer retirement plan, but your spouse is | Phased out: $242,000–$252,000 ($236,000–$246,000 for 2025) | |
| You are covered by an employer retirement plan | Phased out: $129,000–$149,000 ($126,000–$146,000 for 2025) |
High-deductible health plans (HDHPs)/Health Savings Accounts (HSAs)
| HSA contribution limits | Under age 55 | Age 55 and over | Minimum deductibles | Out-of-pocket maximums |
|---|---|---|---|---|
| Individuals With Self-Only HDHP Coverage | $4,400 | $5,400 | $1,700 | $8,500 |
| Individuals With Family HDHP Coverage | $8,750 | $9,750 | $3,400 | $17,000 |
| Annual gift exclusion | Lifetime gift and estate exclusion | 529 five-year forward averaging |
|---|---|---|
| Each individual can gift $19,000 in 2026 ($19,000 for 2025) per recipient without gift tax. | Federal estate tax rate maximum is 40%. Gifts over the annual gift tax exclusion amount are counted against the $15,000,0008 ($13,990,000 for 2025) unified lifetime gift and estate tax exclusion amount. State estate tax rates and structures may vary. | Each individual can contribute up to $95,000 (i.e., $19,000 annual gift tax exclusion amount times five) per beneficiary and “average” it for gift tax exclusion over five years, making no additional gifts to that beneficiary during that time. |
Income tax rates
| Marginal tax rate9 (aka tax bracket) |
Taxable income ($)10,11 | |
|---|---|---|
| Single | Married filing jointly and qualifying widow(er)s |
|
| 10% | $0–$12,400 | $0–$24,800 |
| 12% |
$12,401-$50,400 | $24,801-$100,800 |
| 22% | $50,401-$105,700 | $100,801-$211,400 |
| 24% | $105,701-$201,775 | $211,401-$403,550 |
| 32% | $201,776-$256,225 | $403,551-$512,450 |
| 35% | $256,226-$640,600 | $512,451-$768,700 |
| 37% | Over $640,600 | Over $768,700 |
Social Security
| Full retirement age (FRA)12 by year born | |
| If you were born in: | Then your FRA is: |
|---|---|
| 1943 through 1954 | Your 66th birthday |
| 1955 through 1959 | Between your 66th and 67th birthdays |
| 1960 or later | Your 67th birthday |
| Annual retirement benefit amounts13 | |
| Age-initiating benefits | Maximum |
|---|---|
| 62 and one month (smallest benefit possible) | $35,628 |
| 67 (FRA if born in 1960 or later) | $50,484 |
| 70 (largest benefit possible) |
$62,172 |
| Retirement earnings test | |
| Before the year you reach FRA | $1 of benefits is withheld temporarily14 for every $2 earned above $24,480 |
|---|---|
| In the year you reach FRA but before the month you reach FRA | $1 of benefits is withheld temporarily14 for every $3 earned above $65,160 |
| In the month you reach FRA and later | No limit |
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1 The limit for 401(k), 403(b), governmental 457(b), and thrift savings plan (TSP) plans includes pretax and designated Roth contributions. (Roth contributions are not permitted for nongovernmental 457(b) plans.) The limit for all 457(b) plans also includes employer contributions. The limit on total additions (including employer contributions) to defined contribution plans other than 457(b) plans is $72,000 ($70,000 for 2025).
2 Individual plan limits may be lower. Plans may also allow non-Roth after-tax contributions above these amounts. Catch-up contributions for employees age 50 and over do not apply to nongovernmental 457(b) plans. Beginning in 2026, catch-up contributions for workers who had wages from their plan sponsor above $150,000in 2025 must be made to Roth accounts.
3 There are no income limits for converting Traditional IRA assets to a Roth IRA.
4 For married taxpayers filing separately: If you did not live with your spouse at any time during the tax year, see the “single” filing status. Otherwise, your eligibility is phased out between a modified adjusted gross income (MAGI) of $0 and $10,000.
5 This amount refers to the taxpayer’s MAGI, which does not include amounts that were converted.
6 Workers with high income levels are not precluded from contributing to a Traditional IRA—the limits only apply to determining whether that contribution is deductible.
7 Consult IRS rules or a tax professional if your status is married filing separately or qualifying widow(er).
8 Unused portions of predeceasing spouse’s exclusion amount may be used by surviving spouse.
9 Certain individuals may also be subject to a 3.8% net investment income tax and a 0.9% additional Medicare tax.
10 Generally, adjusted gross income minus deductions. Standard deduction amounts are $16,100 (single filers) and $32,200 (joint filers).
11 Long-term capital gains/qualified dividends rate: A 0% rate applies to taxpayers with taxable income not over $49,450 (single filers) and $98,900 (joint filers). A 15% rate applies to taxpayers with taxable income not over $545,500 (single filers) and $613,700 (joint filers). A 20% rate applies to taxpayers with taxable income above those levels. Gains on assets held for more than 1 year are realized by owner sale. Assets held for 1 year or less are short-term gains subject to ordinary income tax.
12 Someone initiating retirement benefits at full retirement age receives 100% of the benefit called the primary insurance amount (PIA). A person born in 1964 initiating benefits in 2026 at age 62 and 1 month would receive roughly 70% of the PIA. Someone born in 1956 (with a full retirement age of 66 and 4 months) initiating benefits in2026 at age 70 would receive 129.3% of the PIA (adjusted for inflation). Source: ssa.gov/benefits/retirement/planner/1956-delay.html
13 Calculated based on ssa.gov/oact/cola/examplemax.html, assuming retirement in January 2026. Note: The average annual benefit for all retired workers (not just those of certain ages or initiation dates) is $24,850 (based on the SSA A 2025 Monthly Statistical Snapshot).
14 Benefits are recalculated at FRA—to account for amounts withheld—and increased thereafter.
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