What’s Changing About Your Retirement in 2026

Important updates to tax brackets, standard deductions, and contribution limits in 2026 could impact your retirement plan. The full retirement age is also increasing, along with cost-of-living adjustments for Social Security benefits. These changes may mean it’s time to review your retirement investment plan and make sure you’re still on track to reach your goals.

Are There New Contribution Limits for 2026?

The IRS has raised the contribution limits for several retirement accounts, giving investors even more opportunity to save for their future in tax-advantaged environments.

Contribution limits for Traditional and Roth IRAs will increase from $7,000 to $7,500 in 2026. Catch-up contributions for investors aged 50 or older will also increase from $1,000 to $1,100. The phase-out range to qualify for Roth IRA contributions is also increasing.

• Singles and heads of household: $153,000–$168,000
• Married filing jointly: $242,000–$252,000
• Married filing separately: Phase-out remains unchanged at $0–$10,000

For Simplified Employee Pension (SEP) IRAs, the contribution limit will increase by $2,000, bringing the total limit to $72,000. For the Savings Incentive Match Plan for Employees (SIMPLE) IRAs, the maximum contribution will change to $17,000, an increase of $500. Certain SIMPLE IRAs, typically those available to smaller businesses with 25 or fewer employees, have a larger limit of $18,100.

The limits for employer-sponsored plans, like 401(k)s, 403 (b)s, and 457 plans, will go up by $1,000 to $24,500. Catch-up and super catch-up contributions for these plans are increasing as well, to $8,000 and $11,250, respectively.

Investors can continue making 2025 retirement contributions until April 15, 2026.

What are the New Federal Tax Brackets and Standard Deductions?

The IRS also increased tax brackets for tax year 2026. The changes were made in line with inflation and aim to make sure American pay the same proportion of taxes relative to their income.

The tax brackets still range from 10-37%, but you could fall in a different tax bracket depending on your income. For example, if you made $200,000 in 2025 and filed separately, then your marginal tax rate would have been 32%. However, if you make the same amount in 2026, then you would fall under a lower tax bracket and be taxed 24%.

Here’s a breakdown of the 2026 Tax Brackets:

• 37% for single filers making over $640,600 ($768,700 for married couples filing jointly)
• 35% for single filers making over $256,225 ($512,450 for married couples filing jointly)
• 32% for single filers making over $201,775 ($403,550 for married couples filing jointly)
• 24% for single filers making over $105,700 ($211,400 for married couples filing jointly)
• 22% for single filers making over $50,400 ($100,800 for married couples filing jointly)
• 12% for single filers making over $12,400 ($24,800 for married couples filing jointly)
• 10% for single filers making $12,400 or less ($24,800 for married couples filing jointly)

The IRS also increased the standard deductions for 2026, with married couples filing jointly now being able to take a $32,200 deduction on the 2026 taxes. Married couples filing separately and single filers will be able to take a $16,100 deduction, and heads of households will be able to deduct $24,150.

Social Security Updates

How Much Will COLA Increase in 2026?

Social Security benefits and Supplemental Security Income (SSI) payments will increase in 2026 by 2.8%. This cost-of-living adjustment (COLA) increase will result in an average increase of $56 per month and will start for most beneficiaries in January 2026, while others will see these changes reflected on December 31, 2025.

The maximum amount of income subject to the Social Security tax will also increase to $184,500 in 2026.

Will the Full Retirement Age Be Raised Again?

The Full Retirement Age (FRA) will increase to 67 for those born in 1960 or later as part of a decades-long plan by the IRS to raise the retirement age.

However, you can still receive social security benefits as early as age 62, though that would result in you receiving lower monthly benefits. On the other hand, if you delay receiving social security benefits past your FRA, you would see a monthly increase once you start receiving benefits.

Next Steps

These changes could have a big impact on your retirement plan, potentially allowing you to contribute more to your retirement accounts while deducting more from your taxes.

The increased retirement age and recent cost-of-living adjustments may also mean that you should review your retirement plan to make sure you’re on track to save the amount you need.