Updates and Things to Keep in Mind for 2026
New year, new tax law, and 2026 is no exception. I have tried to simplify the changes I believe will have the greatest impact for most people. This is not an exhaustive list, but it's a good start for things to keep in mind this year.
Retirement Contribution Limits Increased
401(K)
o The salary deduction limit has increased by $1,000 to $24,500
o The catch-up contribution is going up to $8,000 (age 50-59 and 64+)
o Super catch-up contribution (ages 60-63) is $11,250
o Catch-up contributions may have to be Roth contributions if your income is over $150,000IRA/Roth IRA
o Contribution limit has increased to $7,500.
o Catch-up contribution increased to $1,100 (age 50+)
Standard Deduction Increase & Extra Deduction for Seniors
The standard deduction is increasing to $16,100 for single filers and $32,200 for couples who are married filing jointly (MFJ). Don’t forget that for anyone 65+, there will be an additional $6,000 deduction ($12,000 for couples) through 2028.
Charitable Giving Deduction
Starting in 2026, you deduct up to $1000 in charitable contributions even if you don’t itemize. MFJ couples can deduct up to $2000. This is a significant change in the One Big Beautiful Bill Act, which will hopefully have a positive impact on charities.
SALT Deduction Cap Increase
Taxpayers who itemize can deduct certain state and local taxes (SALT). The amount that can be deducted has been capped at $10,000 for several years, but in 2026, that amount increases to $40,000. This will increase by 1% per year through 2029 and will revert to $10,000 in 2030. The SALT deduction is phased out by 30 cents for every dollar over $500,000 in Modified Adjusted Gross Income.
Annual Gift Tax Exclusion
This remains unchanged at $19,000. This means you can gift $19,000 to as many people as you’d like without filing Form 709 for the IRS. Couples can give a combined amount of $38,000 to as many people as they’d like if they consent to gift splitting.
First Required Minimum Distribution
If you turn 73 this year, you now must take annual distributions from your IRA, 401(k), etc. The amount depends on the account balance as of 12/31/25. Generally, we recommend withholding federal and state income tax from Required Minimum Distributions (RMDs).
Trump Accounts Arrive in July
Trump accounts were announced in July 2025 in the OBBBA but won’t available until July 5th, 2026. There is a one-time $1,000 federal contribution available to children born in 2025-2028. Form 4547 will be used to open Trump accounts and request the $1,000 contribution. Information will be available here as it becomes available: https://www.trumpaccounts.gov/
Stay Informed and Confident
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Updates and Things to Keep in Mind for 2026
New year, new tax law, and 2026 is no exception. I have tried to simplify the changes I believe will have the greatest impact for most people. This is not an exhaustive list, but it's a good start for things to keep in mind this year.
Retirement Contribution Limits Increased
401(K)
o The salary deduction limit has increased by $1,000 to $24,500
o The catch-up contribution is going up to $8,000 (age 50-59 and 64+)
o Super catch-up contribution (ages 60-63) is $11,250
o Catch-up contributions may have to be Roth contributions if your income is over $150,000IRA/Roth IRA
o Contribution limit has increased to $7,500.
o Catch-up contribution increased to $1,100 (age 50+)
Standard Deduction Increase & Extra Deduction for Seniors
The standard deduction is increasing to $16,100 for single filers and $32,200 for couples who are married filing jointly (MFJ). Don’t forget that for anyone 65+, there will be an additional $6,000 deduction ($12,000 for couples) through 2028.
Charitable Giving Deduction
Starting in 2026, you deduct up to $1000 in charitable contributions even if you don’t itemize. MFJ couples can deduct up to $2000. This is a significant change in the One Big Beautiful Bill Act, which will hopefully have a positive impact on charities.
SALT Deduction Cap Increase
Taxpayers who itemize can deduct certain state and local taxes (SALT). The amount that can be deducted has been capped at $10,000 for several years, but in 2026, that amount increases to $40,000. This will increase by 1% per year through 2029 and will revert to $10,000 in 2030. The SALT deduction is phased out by 30 cents for every dollar over $500,000 in Modified Adjusted Gross Income.
Annual Gift Tax Exclusion
This remains unchanged at $19,000. This means you can gift $19,000 to as many people as you’d like without filing Form 709 for the IRS. Couples can give a combined amount of $38,000 to as many people as they’d like if they consent to gift splitting.
First Required Minimum Distribution
If you turn 73 this year, you now must take annual distributions from your IRA, 401(k), etc. The amount depends on the account balance as of 12/31/25. Generally, we recommend withholding federal and state income tax from Required Minimum Distributions (RMDs).
Trump Accounts Arrive in July
Trump accounts were announced in July 2025 in the OBBBA but won’t available until July 5th, 2026. There is a one-time $1,000 federal contribution available to children born in 2025-2028. Form 4547 will be used to open Trump accounts and request the $1,000 contribution. Information will be available here as it becomes available: https://www.trumpaccounts.gov/
Stay Informed and Confident
Get retirement insights and investment wisdom delivered straight to your inbox, no financial jargon required.
Updates and Things to Keep in Mind for 2026
New year, new tax law, and 2026 is no exception. I have tried to simplify the changes I believe will have the greatest impact for most people. This is not an exhaustive list, but it's a good start for things to keep in mind this year.
Retirement Contribution Limits Increased
401(K)
o The salary deduction limit has increased by $1,000 to $24,500
o The catch-up contribution is going up to $8,000 (age 50-59 and 64+)
o Super catch-up contribution (ages 60-63) is $11,250
o Catch-up contributions may have to be Roth contributions if your income is over $150,000IRA/Roth IRA
o Contribution limit has increased to $7,500.
o Catch-up contribution increased to $1,100 (age 50+)
Standard Deduction Increase & Extra Deduction for Seniors
The standard deduction is increasing to $16,100 for single filers and $32,200 for couples who are married filing jointly (MFJ). Don’t forget that for anyone 65+, there will be an additional $6,000 deduction ($12,000 for couples) through 2028.
Charitable Giving Deduction
Starting in 2026, you deduct up to $1000 in charitable contributions even if you don’t itemize. MFJ couples can deduct up to $2000. This is a significant change in the One Big Beautiful Bill Act, which will hopefully have a positive impact on charities.
SALT Deduction Cap Increase
Taxpayers who itemize can deduct certain state and local taxes (SALT). The amount that can be deducted has been capped at $10,000 for several years, but in 2026, that amount increases to $40,000. This will increase by 1% per year through 2029 and will revert to $10,000 in 2030. The SALT deduction is phased out by 30 cents for every dollar over $500,000 in Modified Adjusted Gross Income.
Annual Gift Tax Exclusion
This remains unchanged at $19,000. This means you can gift $19,000 to as many people as you’d like without filing Form 709 for the IRS. Couples can give a combined amount of $38,000 to as many people as they’d like if they consent to gift splitting.
First Required Minimum Distribution
If you turn 73 this year, you now must take annual distributions from your IRA, 401(k), etc. The amount depends on the account balance as of 12/31/25. Generally, we recommend withholding federal and state income tax from Required Minimum Distributions (RMDs).
Trump Accounts Arrive in July
Trump accounts were announced in July 2025 in the OBBBA but won’t available until July 5th, 2026. There is a one-time $1,000 federal contribution available to children born in 2025-2028. Form 4547 will be used to open Trump accounts and request the $1,000 contribution. Information will be available here as it becomes available: https://www.trumpaccounts.gov/
Stay Informed and Confident
Get retirement insights and investment wisdom delivered straight to your inbox, no financial jargon required.
