2026 Financial Planning Checklist

The 2026 tax year brings various changes to retirement contribution limits, Social Security benefits, Medicare premiums, and tax provisions under the One Big Beautiful Bill Act (OBBBA). For individuals approaching or navigating retirement, understanding these updated figures provides essential context for year-ahead planning decisions. From increased 401(k) and IRA contribution limits to new SECURE 2.0 provisions requiring Roth catch-up contributions for higher earners, 2026 presents both opportunities and considerations that differ meaningfully from prior years.

Medicare Part B premiums increase to $202.90 monthly in 2026, while the Social Security cost-of-living adjustment provides a 2.8% benefit increase. Tax provisions under OBBBA continue to evolve, with the estate tax exemption rising to $15 million per individual and the new senior deduction of $6,000 remaining available through 2028. These interconnected changes affect retirement income projections, healthcare cost planning, and tax optimization strategies.

This checklist provides a comprehensive overview of 2026 financial planning figures, including retirement account limits, Social Security and Medicare changes, and tax adjustments. Whether evaluating contribution strategies, projecting retirement income, or coordinating multiple planning variables, these educational concepts provide a foundation for informed discussions with financial planning professionals.

Key Takeaways

• 401(k) contribution limits increase to $24,500 for 2026, up from $23,500 in 2025, with catch-up contributions rising to $8,000 for those age 50 and older
• IRA contribution limits rise to $7,500 for 2026, with catch-up contributions increasing to $1,100 for those age 50 and older
• SECURE 2.0 mandatory Roth catch-up provisions take effect January 1, 2026, requiring after-tax catch-up contributions for those with 2025 FICA wages exceeding $150,000
• Super catch-up contributions of $11,250 remain available for participants ages 60-63 under SECURE 2.0 provisions
• Social Security benefits increase 2.8% through the 2026 cost-of-living adjustment, with the taxable wage base rising to $184,500
• Medicare Part B premiums rise to $202.90 monthly, an increase of $17.90 from 2025, with the annual deductible increasing to $283
• Standard deduction increases to $16,100 for single filers and $32,200 for married filing jointly under OBBBA provisions
• Estate tax exemption rises to $15 million per individual ($30 million for married couples) effective January 1, 2026, permanently under OBBBA
• Senior deduction of $6,000 continues through 2028 for individuals age 65 and older, phasing out above $75,000 MAGI ($150,000 for joint filers)
• HSA contribution limits increase to $4,400 (self-only) and $8,750 (family), with OBBBA expanding HSA eligibility to include Bronze and Catastrophic health plans regardless of whether they meet traditional HDHP requirements
• Required Minimum Distributions (RMDs) begin at age 73 for those born 1951-1959, or age 75 for those born 1960 or later, under SECURE 2.0 provisions

Retirement Account Contribution Limits for 2026

The IRS annually adjusts retirement account contribution limits based on inflation. For 2026, contribution limits increase across most account types, providing additional opportunities to accumulate tax-advantaged retirement savings.

401(k), 403(b), and 457(b) Plans

The employee deferral limit for 401(k), 403(b), and most 457(b) plans increases to $24,500 for 2026, up from $23,500 in 2025. This limit applies to the combined total of pre-tax and Roth contributions within these employer-sponsored plans.

For participants aged 50 and older, catch-up contributions increase to $8,000 in 2026, up from $7,500 in 2025. This allows eligible participants to contribute up to $32,500 total ($24,500 plus $8,000 catch-up).

The super catch-up provision under SECURE 2.0 allows participants ages 60-63 to contribute an additional $11,250 in catch-up contributions (instead of the standard $8,000), enabling total contributions of $35,750 for this age group. The total combined limit for all contributions (employee, employer, and after-tax) increases to $72,000 for 2026.

Traditional and Roth IRAs

IRA contribution limits increase to $7,500 for 2026, up from $7,000 in 2025. The catch-up contribution for those age 50 and older increases to $1,100, allowing total IRA contributions of $8,600 for eligible individuals.

Roth IRA income phase-out ranges also increase for 2026. For single filers, the phase-out range is $153,000 to $168,000, while married couples filing jointly face phase-outs between $242,000 and $252,000.

Health Savings Accounts (HSAs)

HSA contribution limits for 2026 increase to $4,400 for self-only coverage and $8,750 for family coverage. The catch-up contribution of $1,000 for those age 55 and older remains unchanged. HSAs continue to offer triple tax advantages: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

Under OBBBA provisions effective January 1, 2026, Bronze and Catastrophic health plans are considered HSA-compatible regardless of whether they satisfy the general definition of a high-deductible health plan (HDHP). Per IRS Notice 2026-05, this relief applies whether the plan is purchased through an ACA Marketplace exchange or off-exchange. This expansion significantly increases the number of individuals eligible to contribute to HSAs. Additionally, individuals enrolled in Direct Primary Care (DPC) arrangements with monthly fees up to $150 (individual) or $300 (family) may contribute to an HSA and use HSA funds tax-free to pay DPC fees.

SECURE 2.0 Provisions Effective in 2026

Several SECURE 2.0 Act provisions become effective or continue in 2026, affecting catch-up contribution rules and retirement plan administration.

Mandatory Roth Catch-Up Contributions

Beginning January 1, 2026, participants aged 50 and older who earned more than $150,000 in FICA wages from their employer in 2025 must make all catch-up contributions on a Roth (after-tax) basis. This threshold was increased from the original $145,000 specified in SECURE 2.0 due to inflation indexing.

For participants with 2025 FICA wages of $150,000 or less, catch-up contributions may continue to be made on either a pre-tax or Roth basis, depending on plan provisions and individual election. The IRS has indicated that good-faith compliance efforts will be accepted through December 31, 2026.

Super Catch-Up Contributions (Ages 60-63)

The enhanced catch-up contribution limit for participants ages 60-63 remains $11,250 for 2026. This provision allows individuals in this age range to contribute more aggressively to employer-sponsored plans during the years immediately preceding typical retirement. For higher earners subject to the mandatory Roth catch-up rule, these super catch-up contributions must also be designated as Roth contributions.

Required Minimum Distribution Ages

Under SECURE 2.0 provisions, Required Minimum Distributions (RMDs) must begin at age 73 for individuals born between 1951 and 1959. Those born in 1960 or later have an RMD beginning age of 75. For 2026, individuals turning 73 who were born in 1953 will need to take their first RMD by April 1, 2027 (for the 2026 tax year), with subsequent RMDs required by December 31 of each year.

RMDs apply to traditional IRAs, 401(k)s, 403(b)s, and other pre-tax retirement accounts. Roth IRAs are not subject to RMDs during the account owner's lifetime, though Roth 401(k)s were previously subject to RMDs (this requirement was eliminated starting in 2024). Failure to take required distributions results in a 25% penalty on the amount not distributed, reduced to 10% if corrected within two years.

Social Security and Medicare Changes for 2026

Social Security Cost-of-Living Adjustment

The Social Security Administration announced a 2.8% cost-of-living adjustment (COLA) for 2026, increasing benefits beginning in January. This results in an average monthly benefit increase of approximately $56 for retired workers. For beneficiaries enrolled in Medicare Part B, the $17.90 monthly premium increase is automatically deducted from Social Security benefits, resulting in a net benefit increase of approximately $38 per month for the average retired worker ($56 COLA minus $17.90 Part B premium increase). The Social Security taxable wage base increases to $184,500 for 2026, up from $176,100 in 2025.

Earnings test limits for those receiving benefits before full retirement age also increase. For individuals under full retirement age throughout 2026, the earnings limit is $24,480, with $1 withheld for every $2 earned above this threshold. For those reaching full retirement age in 2026, the limit is $65,160, with $1 withheld for every $3 earned above this amount.

Medicare Part B Premiums and Deductibles

The standard Medicare Part B premium increases to $202.90 per month for 2026, up $17.90 from the 2025 premium of $185. The annual Part B deductible rises to $283, an increase of $26 from 2025. Higher-income beneficiaries continue to pay income-related monthly adjustment amounts (IRMAA) above these base figures.

Comprehensive financial planning software like MaxiFi can model the interaction between Social Security benefits, Medicare premiums, and retirement income to help illustrate net benefit amounts across different scenarios.

Tax Changes Under the One Big Beautiful Bill Act

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several tax provisions affecting 2026 financial planning.

Standard Deduction Increases

For 2026, the standard deduction increases to $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household. These amounts reflect continued inflation adjustments under OBBBA provisions.

Senior Deduction

The $6,000 senior deduction for individuals age 65 and older continues through 2028. This deduction is available in addition to the standard deduction or itemized deductions and the existing additional standard deduction for seniors. For 2026, the existing additional standard deduction for taxpayers age 65 and older is $2,050 for single filers and heads of household, or $1,650 per qualifying spouse for married filing jointly (these amounts also apply to blind individuals). For married couples where both spouses are 65 or older, the combined OBBBA senior deduction is $12,000. The deduction phases out for taxpayers with modified adjusted gross income above $75,000 ($150,000 for joint filers), completely eliminated at $175,000 ($250,000 for joint filers).

Estate Tax Exemption

The federal estate tax exemption increases to $15 million per individual ($30 million for married couples) effective January 1, 2026. This permanent increase under OBBBA replaces the scheduled sunset that would have reduced the exemption to approximately $7 million. The exemption will continue to be indexed for inflation in subsequent years.

2026 Federal Income Tax Brackets

The federal income tax maintains seven marginal tax rates for 2026, with income thresholds adjusted for inflation under OBBBA provisions. Understanding these brackets provides context for retirement income projections, Roth conversion decisions, and withdrawal sequencing strategies.

The following tables reflect 2026 federal income tax brackets based on taxable income (gross income minus deductions). Tax rates are marginal, meaning each rate applies only to income within that bracket range, not to total income.

Single Filers

Married Filing Jointly

Tax bracket thresholds for Head of Household filers fall between Single and Married Filing Jointly amounts, with a standard deduction of $24,150 for 2026.

The interaction between tax brackets, retirement account withdrawals, Social Security benefits, and Required Minimum Distributions creates complexity that varies significantly by individual circumstance. Comprehensive financial planning software like MaxiFi can model how different withdrawal strategies and income timing decisions affect lifetime tax liability across varying tax bracket scenarios.

2025 vs. 2026 Financial Planning Limits Comparison

The following comparison reflects key financial planning limits for 2025 and 2026 based on IRS announcements and legislative provisions. Individual circumstances vary, and this table is for educational reference only.

Note: The Total Combined Limit of $72,000 includes employee deferrals, employer contributions (matching and profit-sharing), and after-tax contributions. This is relevant for individuals evaluating mega backdoor Roth strategies or those with generous employer contributions.

Planning Considerations for 2026

The interaction between contribution limits, Social Security benefits, Medicare premiums, and tax provisions creates complexity that varies significantly by individual circumstance. What may be optimal for one household depends on factors including current and projected income, tax brackets, health status, and retirement timeline.

Comprehensive financial planning software like MaxiFi can model how these interconnected variables affect lifetime spending, taxes, and retirement security across different scenarios. Rather than relying on simplified rules of thumb, year-by-year modeling accounts for the specific interplay of contribution strategies, Social Security claiming decisions, Medicare premium impacts, and tax bracket management.