2026 Key Numbers & Tax Brackets to Know

As we enter 2026, inflation and legislative changes have impacted income taxes, retirement savings limits, and more—mostly in a positive way. Below is a summary of key thresholds and tax bracket details we believe are important for your financial planning.

• IRA & Roth IRA:Maximum contributions remain at $7,500; age 50+ catch-up adds $1,100 for a total of $8,600.
• 401(k)/403(b):Maximum payroll deferrals increase to $24,500. Ages 50–59 and 64+ catch-up adds $8,000 (total $32,500). New “super catch-up” for ages 60–63 adds $3,250 (total $35,750).
• Health Savings Accounts (HSA):Single $4,400; family $8,750. Age 55+ adds $1,000.
• Roth IRA MAGI limits:Single $153,000; joint $242,000. Above these? Let’s discuss a “Back Door” Roth IRA
• Qualified Charitable Distributions (QCD):Still available if age 70½+ with a pre-tax IRA.
• Required Minimum Distributions (RMD):Begin at age 73 for pre-tax accounts (IRA, 401(k), 403(b), etc.). For those born 1960 or after, begins at age 75

• Standard Deduction:Single $16,100; joint $32,200. Age 65+ adds $2,050 single or $3,300 joint. Additional $6,000 for people 65+ through 2028 – phases out starting at $75k single, $150k joint
• Federal Tax Brackets:
• Single: 12% up to $66,500; 22% $121,800; 24% $217,875.
• Joint: 12% up to $133,000; 22% $243,600; 24% $435,750.
• Capital Gains:0% if within the 12% bracket.
• Medicare IRMAA:Premium increases above MAGI of $109,000 (single) or $218,000 (joint).

• Starting before Full Retirement Age (FRA, usually 67): Earned income limit is $24,480 before phase-out.
• At age 62: Max job income $24,480 before benefits reduce.
• Year you reach FRA: Limit is $65,160. After FRA: No limits.

• Annual gift limit remains $19,000 per person; married couples can gift $38,000 per person.

Attached (below) is the Tax bracket illustration that we often utilize in meetings when we discuss income, taxable withdrawals, Roth IRA conversions, etc. We wanted to share this to provide an additional way of viewing the federal tax brackets. We believe current tax rates are historically low, consider taking advantage of today’s rates for taxable withdrawals or Roth conversions.

Tax Bracket Insights

• Bracket numbers representgross income; only income above each threshold is taxed at the higher rate.
• Effective tax rateis lower than your top bracket. Example: $180,000 taxable income → first $133,000 at 12%, next $50,000 at 22%, average ~15%.
• Next bracket above 24% is 32%, so rates climb quickly.
• IRMAA “red line” affects Medicare part B and D premiums; first tier adds about $95/month, increasing with income.

We’re happy to coordinate with your tax preparer and answer any questions.

2026 Tax Bracket Illustration

Happy New Year!
– The Team at Presper Financial Architects

Sources

https://www.schwab.com/resource/tax-reference-guide-2026

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