As we head into the final month of 2025, we want to highlight a few important changes for 2026 and reminders that may affect your retirement planning.
2026 Account Contribution Limits
The IRS has recently announced higher contribution limits to retirement accounts for 2026. If you plan on making the maximum contributions to these accounts, this is a good time to make adjustments that can be effective starting in January.
401(k), 403(b), and most 457 Plans
Employee Deferral Limit: $24,500
Age 50+ Catch-Up: Additional $8,000 (Total Limit of $32,500)
Ages 60-63 Catch-Up (if Available in Your Plan): Up to $11,250
Traditional and Roth IRAs
Contribution Limit: $7,500
Age 50+ Catch-Up: Additional $1,100 (Total Limit of $8,600)
Health Savings Accounts (HSAs)
For Self-Only Coverage: $4,400
For Family Coverage: $8,750
Age 55+ Catch-Up: Additional $1,000
Required Minimum Distributions (RMDs)
In general, if you turned (or are over) age 73 this year, you may need to take an RMD. If you are required to take an RMD for 2025 and have not yet done so, please let us know as soon as possible so we can make sure it gets completed prior to December 31. For your accounts we are managing, we already know what needs to be done and in most cases it’s already completed. However, if you have an outside retirement account that we are not aware of, please let us know as soon as possible. If you are charitably inclined, this could be a good opportunity to do a Qualified Charitable Distribution (QCD).
Roth Conversion Opportunities
This is a good time of year to evaluate your income for the year – especially please let us know if you have any losses for the year that we would not already know about – as this may be a nice opportunity to make Roth conversions.
Tax Loss Harvesting
With the markets as they have been this year, it may be difficult to find many losses to harvest. However, it’s still not a bad idea to take a look at whether you have any positions at a loss as it may be a good time to offset some gains.
Donating Appreciated Securities
In a similar vein, with the markets as they have been this year, for those who are charitably inclined, this could be a good time to make donations of appreciated securities. If this is a new concept for you, please reach out to us as it is generally more advantageous from a tax perspective to do this rather than donate cash.
Beneficiary Designation Review
It’s never a bad idea to double check the beneficiary designations on your retirement accounts and insurance policies to make sure they match your desires. Quick reminder: beneficiary designations trump your estate plan – so if you have recently updated your estate plan, you should confirm that your beneficiary designations are updated as well.
Upcoming Changes or Cash Needs in Your Life
Please keep us updated if there are any new or upcoming changes in your life. For example, please let us know if you are planning a big purchase, a house project, or have any other cash need so we can adjust as necessary.
We hope you have a great and warm holiday season, and we look forward to working with you in 2026 and beyond!