What’s Changing for 2026 Retirement Contribution Limits? Here’s What You Should Know

Hi Friends,

Retirement savers get some good news for 2026. Contribution limits for 401(k)s, IRAs, and HSAs are increasing again, and that gives all of us more room to save in tax-advantaged accounts. These increases may feel small from year to year, but over time they can make a meaningful difference in long-term planning.

Below is a quick walkthrough of what’s changing, why it matters, and how you can use the new limits to strengthen your retirement strategy.

2026 401(k) Retirement Contribution Limits

The IRS has announced higher limits for 401(k) contributions in 2026. If you contribute through payroll at work, this is the number that affects you most.

Higher limits mean more money can grow tax-deferred or tax-free (if you're using a Roth 401(k)). Even small increases can add up significantly over decades of compounding. If your goal is to max out your 401(k), consider updating your payroll instructions early in the year so the contributions spread evenly throughout 2026.

If you’re unsure how these changes fit into your broader retirement picture, a tax consulting session is a great place to talk through the details.

2026 IRA Contribution Limits

Traditional and Roth IRAs are also seeing modest increases for 2026. These accounts offer flexibility for people who:

- Don’t have access to a workplace retirement plan

- Want to save more beyond their 401(k)

- Prefer to make contributions at tax time instead of through payroll

Income phaseouts still apply to Roth IRAs, so if your earnings are higher in 2026, it may be helpful to review whether you qualify or whether a backdoor Roth strategy could make sense.

2026 HSA Contribution Limits

For those with a high-deductible health plan, HSAs remain one of the most tax-efficient accounts available. The 2026 limits are rising again, allowing you to save more for future medical expenses with three layers of tax benefits:

1. A tax deduction for contributions

2. Tax-free growth

3. Tax-free withdrawals for qualified medical expenses

These increases are helpful, especially as healthcare costs continue to rise.

Why These Changes Matter for Long-Term Planning

Each of these limit increases creates small planning opportunities. When combined, they can shift thousands of dollars into accounts that grow more efficiently than a normal savings account or brokerage.If you are approaching retirement, small adjustments now may create additional flexibility later. And if you are earlier in your career, these increases give you more room to capture the benefits of compounding.

If you're trying to understand how much you should contribute next year, or want help reviewing the choices offered through your employer plan, you can start with our new clients page (/new-clients) or schedule a tax consulting session so we can look at the numbers together.

Warmly,

Melissa Ochoa

Enrolled Agent & Owner, Apple Blossom Tax Service

Serving Sebastopol and Sonoma County