InvestED | What’s New for 2026
Retirement, HSA, and Estate Updates at a Glance
As the calendar turns, the numbers shift — and with them, meaningful opportunities to strengthen retirement plans, optimize taxes, and plan for the next generation. The IRS has released the updated limits for 2026, and while many changes appear modest, they can add up to powerful long-term advantages for savers, investors, and families preparing for wealth transfer.
2025 vs 2026: Key Retirement, HSA, Estate, and Tax-Savvy Updates
Account / Rule | 2025 Limit | 2026 Limit | Why It Matters |
401(k) / 403(b) / 457 employee deferral | $23,500 | $24,500 | More room for pre-tax or Roth savings. |
401(k) Catch-Up (50+) | $7,500 | $8,000 | Extra boost for those nearing retirement. |
Super Catch-Up (60–63) | $11,250 | $11,250 | Additional employee-only savings opportunity. |
Combined Employee + Employer (§415) | $70,000 | $72,000 | Larger cap helps business owners and self-employed individuals. |
Traditional / Roth IRA (under 50) | $7,000 | $7,500 | Modest increase enhances tax-advantaged growth. |
IRA Catch-Up (50+) | $8,000 | $8,600 | Higher limit for late-career savers. |
HSA (Self-Only) | $4,300 | $4,400 | Helps fund medical + retirement needs. |
HSA (Family) | $8,550 | $8,750 | Slight bump for families. |
HSA Catch-Up (55+) | $1,000 | $1,000 | Still a valuable tool for older savers. |
Annual Gift-Tax Exclusion | $19,000 | $19,000 | Predictable gifting; couples can give $38,000. |
Qualified Charitable Distribution | $108,000 | $111,000 | Tax-efficient giving directly from IRAs. |
Charitable Giving for Standard Deduction filers | N/A | $1,000 Single/$2000 Married | Cash donations deductible even without itemizing. |
529 → Roth IRA Conversion | Allowed up to $35,000 lifetime | Allowed up to $35,000 lifetime | Turns unused 529 funds into retirement savings. |
Estate Tax Exemption (individual) | $13.99mm | $15mm | Higher threshold for tax-free transfers. |
Estate Tax Exemption (married) | $27.98mm | $30mm | Expanded room for multi-generational planning. |
What These Changes Mean for You
1. More Room For Retirement Savings
Higher limits across 401(k)s, IRAs, and HSAs create more tax-efficient space for long-term wealth building. For example, a saver age 60–63 could potentially contribute up to $35,750 in employee-only 401(k) contributions — and up to $72,000 when combined with employer dollars.
2. Strategic Charitable Giving Options
QCD limits rise to $111,000 in 2026, making it easier for IRA owners 70½+ to give generously while reducing taxable income. Even standard-deduction filers can deduct up to $1000 for single/$2000 for married filing jointly in cash/stock donations next year.
3. New Flexibility for 529 Plans
Unused 529 dollars can now be moved into a Roth IRA for the beneficiary, giving families a tax-efficient way to support a child or grandchild’s retirement — provided the account is old enough and earned-income rules are met.
4. Expanded Estate and Legacy Planning Power
With the 2026 exemption rising to $15 million per individual ($30 million per couple), families have additional room to transfer wealth tax-free. Paired with annual gifting and charitable strategies, this strengthens multi-generational planning.
5. A Holistic Planning Opportunity
Retirement accounts, HSAs, charitable tools, and estate strategies don’t stand alone — they work together. Thoughtful coordination can create more tax efficiency and better long-term outcomes.
Even small annual changes can have major lifetime impact. The 2026 updates offer more ways to save for retirement, strengthen philanthropic plans, manage healthcare expenses, and pass wealth efficiently to heirs. With a coordinated approach, these expanded limits help protect both lifestyle and legacy.
As the financial landscape evolves, staying proactive ensures your planning keeps pace. Use the new 2026 limits to your advantage — and position yourself and your family for a stronger financial future.
Jeremy Heavey
AIF ® , NSSA ® | FINANCIAL ADVISOR
Securities and Investment Advisory Services offered through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors, LLC is independently owned and operated. File #5057537
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