Half the year is already behind us. This might be a good time to review your retirement savings progress and consider tax strategies that may improve your financial outlook for 2026 and beyond.
Contribution Limits for 2026
401(k), 403(b), and 457 plans: $24,500 employee deferral limit. Age 50 and older adds an $8,000 catch-up. Ages 60-63 may use up to $11,250 catch-up if the plan allows. Overall defined contribution limit is $72,000.
IRA (Traditional or Roth): $7,500 base limit. Age 50 and older adds $1,100 catch-up.
HSA: $4,400 for self-only coverage. $8,750 for family coverage. Age 55 and older adds $1,000 catch-up.
Mid-Year Check-Up
• Have you reached at least half of your annual contribution targets?
• Are you capturing the full employer match?
• Does your overall savings rate support your long-term goals?
Tax Optimization Ideas
Roth conversions can make sense during lower-income years. The new OBBBA senior deduction offers an extra $6,000 for singles or $12,000 for joint filers age 65 and older. This may help manage your tax bracket, reduce future RMDs, and limit Medicare IRMAA surcharges.
Maximize HSA contributions for the triple tax advantage if you have a high-deductible health plan.
Consider capital gains harvesting, distribution timing, or qualified charitable distributions (age 70½ and older) to help control your taxable income.
Mid-year reviews and small adjustments can add up over time. Every situation is different. This information is general and not personalized advice. Please contact us and/or your tax professional to discuss your specific circumstances.