2026 Changes to IRS Limits

As we look ahead to the 2026 tax year, GatePass Capital is highlighting the key IRS updates that may impact your retirement planning and overall financial strategy.

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Retirement Plan Contribution Limits (2026)

• Roth Catch-Up Rule: For 2026, employees age 50 or older whose prior year (2025) FICA wages exceeded $150,000 must make any catch-up contributions as Roth (after-tax) contributions.

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Income Phase-Out Ranges for Traditional and Roth IRAs (2026)

Eligibility to make deductible Traditional IRA contributions or any Roth IRA contributions is subject to Modified Adjusted Gross Income (MAGI) phase-out ranges.

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Other Key 2026 Financial Limits

• Health Savings Account (HSA): The total annual contribution limit is $4,400 for self-only coverage and $8,750 for family coverage. An additional $1,000 catch-up contribution is available for individuals aged 55 and older who are not enrolled in Medicare.
• Annual Compensation Limit: The maximum compensation a qualified plan can consider is $360,000.
• Highly Compensated Employee (HCE) Threshold: The compensation threshold to be considered an HCE remains at $160,000 (based on the prior year's compensation).
• Social Security Taxable Wage Base: The maximum amount of earnings subject to Social Security tax will increase to $184,500.
• Federal Estate and Gifting: Federal estate and gift unified exemption: $15,000,000 per individual for 2026 (≈$30,000,000 per married couple), up from $13.99M in 2025. Annual gift tax exclusion: $19,000 per donee (unchanged from 2025).

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If you have any questions about how these updated limits may affect your financial plan, the GatePass Capital team is here to help you navigate your options with clarity and confidence.

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