In baseball, there is an old saying that goes, “You can’t tell the players without a scorecard.”
In investing, you have to know the rules before you can commit to a strategy.
In mid-November, the IRS released its much-anticipated 2026 contribution limit numbers. Due to the government shutdown, the numbers came out several weeks later than in previous years, which caused a bit of a challenge for some who like to get a head start.1,2
Take a look at the tables below and please let us know if any of the numbers surprise you.
IRA Contribution Limits
Contribution Type | 2026 Limit | 2025 Limit |
|---|---|---|
IRA (traditional and Roth under age 50) | $7,500 | $7,000 |
IRA catch up (age 50+) | $1,100 | $1,000 |
After reaching age 73, you must begin taking required minimum distributions from a Traditional IRA in most circumstances. Withdrawals are taxed as ordinary income. If a withdrawal is taken before age 59½, a 10% federal income tax penalty may apply.
Income Phase-Out Ranges for Roth IRAs
Filing Status | 2026 phase-out begins | 2026 phase-out ends |
|---|---|---|
Single / head of household | $153,000 | $168,000 |
Married filing jointly | $242,000 | $252,000 |
Married filing separately | Less than $10,000 | Less than $10,000 |
Roth IRA distributions must meet a five-year holding period and occur after age 59½ to qualify for the tax-free and penalty-free withdrawal of earnings. Tax-free and penalty-free withdrawal can also be taken in certain circumstances, such as the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals.
SIMPLE IRA, SIMPLE 401(k), SEP Limits
Account Type | 2026 limits | Catch-up (50-59 and 64 and over) | Super catch-up for those 60-33 |
|---|---|---|---|
Simple IRA / Simple 401(k) | $17,000 | $4,000 | $5,250 |
Maximum annual contribution | Annual compensation limit | ||
SEP IRA | $72,000 | $360,000 | No super catch-up allowed |
After reaching age 73, you must begin taking required minimum distributions in most circumstances. Withdrawals are taxed as ordinary income, and if they are taken before age 59½, a 10% federal income tax penalty may apply.
Health Savings Account (HSA) Limits
Coverage Type | Maximum HSA contribution | Minimum annual deductible | Maximum annual out-of-pocket limit |
|---|---|---|---|
Self Only | $4,400 | $1,700 | $8,500 |
Family | $8,750 | $3,400 | $17,000 |
HSA Catch-Up | |||
Age 55+ | $1,000 |
Once you start Medicare, you can no longer contribute pretax dollars to your HSA. Any money withdrawn from your HSA for nonmedical reasons is considered taxable income and faces an additional 20% penalty. This penalty is void after the age of 65; however, the withdrawal will still become taxable income.
“Whoever walks with the wise becomes wise, but the companion of fools will suffer harm.” Proverbs 13:20
With the contribution numbers coming out a bit later than normal, some of you might have committed to a certain strategy during open enrollment that’s different from what you see in the tables.
If that’s the case, please let us know. We can give you some guidance about next steps.
If you’re uncertain about how the new Roth rules would affect your Roth conversion strategy, we can help. And if the new rules for business owners have you rethinking your 2026 contribution strategy, please reach out.
There’s a lot to consider this year, thanks to the shutdown “curveball.” We’re here to help.
- IRS.gov, November 13, 2025
- PlanSponsor.com, November 13, 2025
