One of the most important items on your financial checklist at the beginning of every year is updating your contribution amounts. Your finances change. Your circumstances change. And every year, the IRS changes the rules.
As we start 2026, now is the right time to confirm that you’re contributing the right amount to your retirement and savings accounts, based on the 2026 contribution limits and your overall financial plan.
Let’s walk through what changed for 2026 and what you should be reviewing right now.
Start With Your Cash Flow and Budget
Even though it’s not the most exciting way to kick off a new year, updating your budget is foundational. After the holidays, it’s tempting to avoid looking too closely, but January is actually the most logical time to reset.
Why?
- Your pay may have changed.
- Health insurance premiums often reset annually.
- Other fixed expenses may be updated at the start of the year.
- Contribution limits for retirement and savings accounts change.
At Korhorn Financial Group, we call this reviewing your present financial position, and it starts with cash flow. If you’re using the three-bank-account system, this is where everything ties together, especially how much you’re saving and investing.
401(k), 403(b), and 457 Contribution Limits for 2026
For 2026, employer retirement plan limits increased meaningfully. The standard contribution limit for a 401(k), 403(b), or 457 plan is now $24,500, up from $23,500 in 2025. You can contribute up to 100 percent of your income, capped at $24,500.
If you are age 50 or older, you are eligible for a catch-up contribution of $8,000, which increased from $7,500 in 2025. If you turn 50 at any point during 2026, even later in the year, you can begin making catch-up contributions immediately.
Important Catch-Up Contribution Rule: If you earned $150,000 or more in wages in 2025, any catch-up contributions to a 401(k), 403(b), or 457 plan in 2026 must be Roth. Make sure your election is set correctly.
Super Catch-Up Contributions (Ages 60-63): There is also a special super catch-up contribution for those ages 60 through 63. During those four years, the catch-up limit increases to $11,250. It only applies to those specific ages, but it is a powerful opportunity if it applies to you.
IRA and Roth IRA 2026 Contribution Limits
The contribution limit for Traditional IRAs and Roth IRAs also increased for 2026. The total limit is now $7,500, up from $7,000 in 2025.
If you contribute monthly, this is where people often get tripped up when limits change. For 2026, $625 per month will fully fund an IRA. If your cash flow allows it, consider contributing earlier in the year rather than spreading it evenly; time in the market still matters.
2026 Contribution Limits for HSA
If you have an HSA-eligible health plan, this is one of the most powerful savings tools available.
2026 HSA Limits
- $4,400 for single coverage (Up from $4,300)
- $8,750 for family coverage (Up from $8,550)
If you’re age 55 or older, you can contribute an additional $1,000 in catch-up contributions. If both spouses are 55 or older, each can make their own $1,000 catch-up contribution, but it must be made to separate HSAs. Whenever possible, contributing through payroll is beneficial because the contributions avoid FICA taxes in addition to income taxes.
The Real Question: How Much Should You Be Contributing?
Knowing the limits is helpful, but that’s not the most important question. The real question is: How much should you be contributing based on your financial goals and financial life?
If you’re unsure whether you’re saving the right amount, maximizing the right accounts, or balancing Roth, pre-tax, and HSA strategies, this is where working with a CERTIFIED FINANCIAL PLANNER™ matters.
If you already have one, now is the time to check in. If you don’t, our team would be happy to help. Take your next wise step and start 2026 with clarity and confidence in your financial plan.
Amy Masters is a CERTIFIED FINANCIAL PLANNER™ at Korhorn Financial Group. She also holds her Chartered Financial Consultant (ChFC®) designation.
