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Every year the IRS adjusts how much you can set aside in tax-advantaged accounts. Contributing to these accounts is one of the most straightforward ways to lower your taxable income while building toward retirement or covering health costs. Here are the official 2026 limits and what they mean for your planning.
Retirement plans: 401(k), 403(b), 457 & TSP
- Employee elective-deferral limit: $24,500 (up from $23,500 in 2025).
- Age 50 and older catch-up: an additional $8,000.
- Ages 60–63 enhanced catch-up (under SECURE 2.0): $11,250.
Individual Retirement Accounts (IRAs)
- Annual contribution limit: $7,500 (up from $7,000).
- Age 50 and older catch-up: an additional $1,100.
IRA deductibility can be limited by your income and whether you’re covered by a workplace plan, so it’s worth checking your specific situation.
Health Savings Accounts (HSA)
- Self-only coverage: $4,400.
- Family coverage: $8,750.
- Age 55 and older catch-up: an additional $1,000.
To contribute to an HSA you must be enrolled in an HSA-eligible high-deductible health plan. Unused HSA funds roll over year to year.
Health Flexible Spending Accounts (FSA)
- Employee salary-reduction limit: $3,400.
- Maximum carryover, if your plan allows it: $680.
What this means for you
Maxing out—or even just increasing—your contributions can reduce this year’s taxable income. If you own a business, the right retirement plan can benefit both you and your team; our tax services, payroll, and business-structure support can help you set it up correctly. Want to talk through the best mix for your situation? Request a consultation or contact us.
Sources & disclaimer: Figures above are the IRS 2026 amounts published in the retirement plan and annual inflation-adjustment announcements, and Revenue Procedure 2025-19 (HSAs). This article is general information, not tax advice; limits and eligibility rules can change, so confirm the details for your situation with a tax professional.