As we enter 2026, several important tax, retirement, and gifting limits are set to shift. These updates may affect how you save, how you give, and how you plan for the future. Understanding the new thresholds can help you make more informed financial decisions in the year ahead.

Retirement Account Limits Increase

For 2026, the Internal Revenue Service (IRS) has raised contribution caps for several common retirement accounts. Under 401(k), 403(b), and most 457 plans, the base elective deferral limit rises to $24,500, up from $23,500 in 2025. If you are 50 or older, the catch-up contribution limit increases to $8,000, up from $7,500. For those between ages 60 and 63 in plans that allow it, the super catch up remains $11,250. For individual retirement accounts (traditional and Roth), the annual contribution limit increases to $7,500 from $7,000. For savers age 50 and older, catch-up contributions increase to $1,100, allowing a total of $8,600. These higher limits reflect cost of living adjustments and give a helpful push to maximize retirement savings. With higher limits, 2026 is a good opportunity to increase retirement contributions, especially if you felt constrained by previous caps. Combined employer and employee contributions to defined contribution plans rise to a maximum of $72,000 in 2026.

Gift and Estate Tax Rules for 2026: What Stays the Same and What Increases

If you are thinking about gifting money or assets, 2026 will bring several important thresholds.

• The annual gift tax exclusion remains $19,000 per recipient.
• Married couples who elect to gift split can give $38,000 per recipient.
• The lifetime estate and gift tax exemption increases to $15 million per individual and $30 million for couples.
• For gifts to a spouse who is not a U.S. citizen, the adjusted exclusion amount for 2026 is $194,000.

These limits create helpful opportunities for both lifetime gifting and long-term estate planning.

Why the 2026 Changes Matter and How to Plan Ahead

2026’s rising contribution limits provide a great opportunity to review your retirement savings strategy. From an estate planning perspective, the larger lifetime exemption offers significant flexibility for wealth transfer. At the same time, the unchanged annual gift exclusion means that larger transfers should still be planned thoughtfully. Bringing together retirement tools, gifting strategies, and tax planning can create a strong financial foundation for the years ahead. It may be a good idea to speak with a tax or estate planning professional if you are managing large gifts, multiple accounts, or complex goals. Please reach out to your Vision Capital Client Relationship Manager if you would like to further discuss the changes for 2026.