4 Retirement Updates to Know for 2026 ⭐
The retirement related updates that you need to know in 2026!
Each new year brings changes that affect how one must plan in retirement, sometimes in small ways, sometimes in ways that meaningfully change decisions.
For 2026, a handful of updates stand out because they touch how retirees and near-retirees save, give, and manage taxable income.
Here are four retirement-related updates worth paying attention to in 2026, and why they truly matter!
1. Standard Deduction Updates: Including a New $6,000 Senior Deduction
Beginning in 2026, the standard deduction increases again, and retirees over age 65 receive an additional benefit under new rules.
The standard deduction increased to $16,100 for single filers and $32,200 for those married filing jointly.
Already in existence was the over-65 deduction, which in 2026 increases to $2,050 for single filers and $3,300 for those married filing jointly.
However, last year, the “One Big Beautiful Bill Act” introduced an ADDITIONAL $6,000 over-65 deduction, subject to income thresholds:
$75,000 AGI for single filers
$150,000 AGI for married filing jointly
For retirees who fall under those limits, this effectively reduces taxable income without needing to itemize or change spending behavior.
Example:
Let’s assume that you’re a married couple over the age of 65, with an expected adjusted gross income of less than $150,000.
In 2026, you are entitled to the following standard deduction off your gross income:
$32,200 - Standard Deduction
$3,300 - Existing Over-65 Deduction
$12,000 - New Additional Over-65 Deduction
____________________________________________
= $47,500 = Total Over-65 Married Standard Deduction Amount
You may be entitled to more deductions, but this is your 2026 standard deduction. Pretty nice, huh?!
Why this matters:
Many retirees no longer itemize deductions, especially after recent increases to the standard deduction. This new senior deduction reinforces that trend while creating additional tax relief for moderate-income retirees.
It also shifts how charitable giving and income planning should be evaluated going forward.
2. Updates to “Catch Up” Contributions
Typically, when you reach age 50, you have the ability to make “catch-up contributions” to your workplace retirement plans and IRAs.
This was designed for those nearing retirement who might need to literally “catch up” on their retirement savings.
2026 brings a few updates to catch-up contributions that are worth paying close attention to.
In 2026, someone over the age of 50 can make employee deferrals (contributions) of $24,500 plus a catch-up contribution of $8,000 to their 401(k), 403(b), etc.
Continuing in 2026 after their implementation the year prior were “super” catch-up contributions.
Individuals aged 60 to 63 are eligible for enhanced “super” catch-up contributions to workplace retirement plans.
This would increase their “catch-up” contribution from $8,000 to $11,250.
All told, those over 50 could make employee deferrals of $32,500, or $35,750, if between the ages of 60-63.
The last thing to note on catch-up contributions is that beginning in 2026, high-income earners who made more than $150,000 in wages from the prior year are required to make their catch-up contributions as Roth (after-tax) as opposed to pre-tax.
Note: It is actually possible to exceed the above contribution amounts with “after-tax” contributions, which can be made up to a higher IRS limit for deferred compensation plans (401(k)’s, 403(b)’s, etc.).
However, the ability to make these contributions is plan-specific, and you would need to check with HR and/or your 401(k) administrator to see if they are allowed within your plan.
Why this matters:
This provision creates a short but powerful planning window for people in their early 60s who are still working and earning a high income. It allows for accelerated saving in the final years before retirement, but also raises important questions about whether those dollars should be contributed pre-tax or Roth.
As with most retirement rules, the opportunity is real, but the strategy matters.
3. Charitable Giving Rules Changed Meaningfully in 2026
The One Big Beautiful Bill Act (OBBBA) introduced several changes to how charitable contributions are treated starting in 2026.
First, non-itemizers can now deduct cash charitable contributions above the line:
Up to $1,000 per person
$2,000 for married couples filing jointly
This restores a tax benefit for charitable giving, even for those who take the standard deduction.
Second, for taxpayers who do itemize, charitable contributions are now only deductible to the extent they exceed 0.5% of adjusted gross income (AGI).
Example:
Assume you’re a married couple who itemize their deductions and typically make charitable contributions.
In 2026, if your AGI ends up being $150,000, you will not be able to deduct your first $750 of charitable contributions ($150,000 x 0.5%).
If you make $5,000 of contributions, you can take a deduction of $4,250.
Why this matters:
Charitable giving is no longer “one size fits all.” The method and timing of giving matter more than before, especially for retirees deciding between cash gifts, appreciated assets, or IRA-based strategies like qualified charitable distributions.
These changes make it more important to align generosity with tax efficiency rather than relying on habits formed under old rules.
4. Retirement Plan Contribution Limits Increased Again
Contribution limits increased across major retirement accounts for 2026, including higher limits for those over age 50.
For 2026:
401(k), 403(b), and 457 plans: $24,500
Catch-up contribution (age 50+): $8,000
Total potential 401(k) contribution (50+): $32,500
IRA contribution limit: $7,500
IRA catch-up (50+): $1,100
Why this matters:
Higher limits create more opportunity, but also more complexity.
For people approaching retirement, the key question isn’t just how much they can contribute, but whether additional savings improve long-term flexibility or increase future tax pressure.
You may be in a situation where you’ve already saved what you need to satisfy the retirement that you’re after. You might not need to keep pressing your foot on the savings gas pedal. Perhaps you can put it in neutral!
Have any questions about what you’ve read? Let’s talk about them!
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