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2026 brings some significant tax law changes, partly due to the passing of President Trump’s One Big Beautiful Bill Act (OBBBA) in July 2025. The bill made permanent many of the provisions of Trump’s 2017 Tax Cuts and Jobs Act (TCJA). In addition, the IRS has increased several key retirement plan limits, which can help you save more.

Here, we provide insight into some updates happening in 2026 and how they impact you.

Social Security Updates

In 2026, Social Security has been modified in the following ways.

• Cost-of-living adjustment (COLA) – Social Security benefits received a 2.8% COLA boost, which adds approximately $56 per month to the average retiree’s check.
• Full retirement age (FRA) – Known as FRA, the age at which individuals can begin receiving full Social Security benefits has increased to 67 for those born in 1960 or later.
• Earnings limit – The earnings limit for those younger than FRA who work while receiving Social Security benefits has increased from $23,400 in 2025 to $24,480 in 2026. Those who reach FRA in 2026 are subject to a $65,160 earnings limit. The limit no longer applies once a taxpayer reaches full retirement age.
• Social Security tax threshold – The maximum amount of income subject to Social Security tax has increased from $176,100 in 2025 to $184,500 in 2026.

Retirement Plan Contribution Limits

For 2026, the IRS updated its retirement plan contributions to help Americans keep up with inflation.
The new limits are as follows.

• IRAs – In 2026, the IRS contribution limit has increased to $7,500.
• IRA catch-up – Individuals age 65 and older can make an additional $1,100 IRA catch-up contribution, for a total contribution of $8,600.
• Employer-sponsored retirement plan – Employees can contribute up to $24,500 to a qualified retirement plan, such as a 401(k)s, 403(b)s and 457 plan.
• Catch-up contributions – Savers aged 50 and older can contribute an additional $8,000 in catch-up contributions to an employer-sponsored retirement plan, for a total contribution of $32,500.
• Super-catch-up contribution – As an added retirement savings boost, the IRS allows individuals between the ages of 60 and 63 to make a super-catch-up contribution of up to $11,250 to an employer-sponsored retirement plan. This can result in a total 2026 contribution of $35,750 for individuals nearing retirement.
• Total defined contribution limit – The total contribution to a defined contribution plan, including both employee and employer contributions, has increased to $72,000 in 2026.

Updated Rules for High Earners

The following new rules apply to high-income earners.

• New Roth catch-up rule – Effective in 2026, employees who earned more than $150,000 in the previous year must make catch-up contributions to qualified retirement plans on an after-tax (Roth) basis.
• IRA deduction phase-out – In 2026, the IRA contribution deduction is phased out for married couples filing jointly who have a modified adjusted gross income (MAGI) between $242,000 and $252,000 when a spouse is covered by a workplace retirement plan.

Senior Deduction Opportunity

OBBBA introduced a new deduction opportunity for those aged 65 and older who earn less than $75,000 per year, or $150,000 for married couples filing jointly. These taxpayers may qualify for deduction of between $6,000 and $12,000 to help offset federal taxes on their Social Security and other retirement income.

Healthcare Savings Updates

Health savings accounts (HSAs) and Medicare received a cost-of-living boost for 2026.

• HSA contribution limits – HSA limits have increased to $4,400 for individuals and $8,750 for families in 2026.
• Medicare Part B premiums – The standard monthly premium has increased to $202.90 in 2026, up from $185 in 2025, and the annual deductible has increased to $283.

Could you use some clarification on how these new rules and updates may impact your financial situation? North Oaks Wealth Management is here to help. We support clients in building strong financial futures, one brick at a time. Schedule a call to learn more.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

All investing involves risk including loss of principal. No strategy assures success or protects against loss. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.​