Pure’s Principal, Marc Horner, CFP®, identifies 2026 IRA changes, what they mean for you, and how to make sure you’re not leaving money on the table.
Transcript
Every year, the IRS tinkers with the retirement account rules. Most years it’s minor stuff — a tweak here, a threshold there. But 2026 has a few changes that are genuinely worth your attention, especially if you’re in your 50s or 60s and in the final stretch of building your retirement savings.
So today we’re going through the updates that actually matter — what changed, what it means for you, and how to make sure you’re not leaving money on the table. So, let’s get to it.
Contribution Limits Have Increased
Let’s start with the good news, because the IRS doesn’t hand these out often, so we should appreciate it when they do. The IRA contribution limit for 2026 has increased to $7,500 per year — up from $7,000. And if you’re 50 or older, your catch-up contribution is still on the table, bringing your total to $8,600 per year.1
Now, I can already hear you: “$500 extra? That’s it?”
Fair. It’s probably not going to change your life in year one. But if you’re consistently maxing out your IRA in your late 50s or early 60s, that extra $500 compounding over five to ten years adds up in a way that might surprise you. Small increases, applied consistently, are how retirement savings actually get built.
So, if you’ve been contributing the same flat dollar amount for a few years and haven’t looked at it recently — now’s a good time to check whether you’re still maxing out. The limit moved. Your contribution might not have.
Roth IRA Income Limits Have Also Shifted
For anyone contributing to a Roth IRA — or thinking about it — the income phase-out ranges have been updated for 2026, and it’s worth knowing where you land.
Here’s the quick version: below a certain income, you can contribute the full amount. Above a certain income, you’re phased out entirely. In between, you can make a partial contribution.
For 2026, if you’re married filing jointly, the phase-out range is from $242,000 to $252,000. If you’re a single filer, it’s $153,000 to $168,000.
If you’re in your peak earning years — salary, consulting income, a business — you may be closer to these limits than you’d expect. Worth checking before you contribute and find out the hard way.
And if you’re already over the income limit? Don’t panic.
There’s a move called a backdoor Roth conversion that can still get you into Roth’s tax-free growth even if the front door is locked. It’s a more advanced strategy — definitely a conversation to have with your advisor — but the point is: being over the income limit does not mean the game is over. It just means you’re using a different entrance.
SECURE 2.0: Catch-Up Contributions Get a Major Upgrade
This one is genuinely significant, and it’s flying under the radar for a lot of people.
Back in 2022, Congress passed the SECURE 2.0 Act — a massive piece of retirement legislation with provisions rolling out over several years. One of those provisions kicks in fully in 2026, and if you’re between the ages of 60 and 63, it could be a big deal for you.
Starting this year, if you’re in that 60-to-63 window and you participate in an employer retirement plan like a 401(k), you may be eligible for enhanced catch-up contributions — up to $11,250 in additional contributions on top of the standard limit.
Now, this applies to workplace plans rather than IRAs directly. But your overall retirement savings strategy doesn’t live in a silo — the more you can shelter across all your tax-advantaged accounts, the better.
If you’re 60, 61, 62, or 63 this year, this is the provision you really don’t want to miss. It’s a limited window, and it doesn’t come back around.
What Hasn’t Changed — But Still Deserves Attention
Not everything shifted this year, but a few rules that stayed the same are worth keeping front of mind.
The RMD age is still 73. If you’re turning 73 in 2026, your Required Minimum Distributions start this year. Missing that first deadline comes with a steep penalty — so if that’s you, put it on the calendar now, not later.
The 10% early withdrawal penalty is still in place for taking money out before age 59½. Limited exceptions exist, but “I wanted to” is not one of them.³
The Roth five-year rule is still fully in effect. To take qualified tax-free withdrawals from a Roth IRA, the account needs to have been open for at least five years and you need to be at least 59½. If you’re newer to the world of Roth investing, that clock matters more than a lot of people realize — the sooner you open the account, the sooner the clock starts.³
Higher contribution limits. Updated Roth income thresholds. A significant catch-up contribution upgrade for the 60-to-63 crowd. And a handful of rules that haven’t changed — but still have a way of catching people off guard.
The IRS didn’t exactly make 2026 simple. But then again, they never do.
The good news is that the rules — complicated they may be — consistently reward the same thing: people who plan ahead, stay informed and take action.
If you want to make sure your IRA strategy is fully dialed in for 2026, that’s what we’re here for. We’re doing free assessments right now – no strings, just a relaxed conversation where we dig into your plan, spot any gaps or opportunities, and give you some honest feedback. Since we’re fiduciaries, think of it as a second set of eyes from someone who’s in your corner.
And as always — if this video was useful, share the wealth and send it along to a friend…pun intended.
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IMPORTANT DISCLOSURES:
- Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor.
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- Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
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- Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
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