If you’re like most, you want to enjoy a relaxed, carefree life once you’re done working. Yes, it’s possible, but it doesn’t happen by accident. It takes years of making the right retirement planning moves to get there.
With all the recent tax law changes, you might already know that big changes are on the horizon. Here’s a look at some of the major shifts you need to know about as you dive into financial planning for the new year.
New Contribution Limits and Tax Updates for 2026
You might be getting ready to file your 2025 taxes, but you should also take a moment to look over the tax law changes that impact your retirement planning going forward.
In 2025, the One Big Beautiful Bill Act (OBBBA) made significant changes to tax laws. These are some of the most critical ones to keep in mind while tax planning:
- From 2026 on, over-50 catch-up contributions to 401(k)s won’t be tax-deductible.
- If you made more than $145,000 in W-2 wages, catch-up contributions must be on an after-tax (Roth) basis.
- If your employer-sponsored retirement plan has no Roth feature, you won’t be allowed to make catch-up contributions.
Each year, contribution limits are adjusted for inflation. These are the new limits for 401(k)s, 403(b)s, and other employer-sponsored plans:
- Standard contribution limit: $24,500
- Catch-up limit (age 50+): $8,000 (total $32,500)
- “Super” catch-up limit (age 60 to 63): $11,250 (total $35,750)
- Total contribution limit (employer + employee): $72,000
These are the contribution limits for both traditional IRAs and Roth IRAs:
- Standard contribution limit: $7,500
- Catch-up limit (age 50+): $1,100 ($8,600 total)
For SEP IRAs, you may contribute 25% of your self-employment income or $72,000, whichever is less.
How Inflation Adjustments May Impact Retirement Planning
Inflation erodes your purchasing power over time, and this can have profound effects on your retirement planning.
- Over time, the same dollar amount covers fewer expenses.
- Annuities, savings accounts, and other accounts with low interest rates may not keep up with the cost of living.
- If the cost of living keeps rising during retirement, you might need to make lifestyle adjustments.
This part of retirement planning can be particularly stressful because you’re dealing with unknowns. Our team can take an in-depth look at your finances, goals, and potential risks to help you plan for inflation as best you can.
Deadlines to Keep in Mind
As you move forward with retirement planning, don’t forget the following deadline:
- April 18, 2026: Last day to make IRA contributions for 2025
If you must take required minimum distributions (RMDs) from your retirement accounts, you should be aware of that deadline too. Generally, you must start taking RMDs when you turn 73, and the deadline to do so is April 1st after your 73rd birthday.
Keeping track of deadlines and trying to create a cohesive retirement planning strategy can be exhausting, but we’re here to help. The earlier you contact us, the more time we’ll have to build you a customized tax plan.
Need Help With New Year Financial Planning?
Retirement planning isn’t a set-it-and-forget-it endeavor. It takes intentionality and dedication to build a retirement plan that suits your needs. At Truvium Wealth Management, we help our clients find clarity and build financial plans aligned with their goals.
If you’re curious about how we may be able to help you fine-tune your retirement planning, contact us online today. To schedule a meeting, call (877) 277-2751 or email info@truviumwealth.com.
Frequently Asked Questions
What retirement planning changes should I be aware of in 2026?
Several tax and contribution updates may affect retirement planning in 2026, including new rules for catch-up contributions, higher contribution limits, and changes to how over-50 contributions are taxed. These updates can influence how much you can save, where contributions should be directed, and how tax-efficient your strategy will be over time.
How does inflation impact retirement planning decisions?
Inflation can significantly affect retirement planning by reducing purchasing power and increasing long-term income needs. Rising costs may strain fixed-income sources and require adjustments to savings, investment strategy, or lifestyle expectations. At Truvium Wealth Management, we help clients evaluate inflation risk by reviewing income sources, portfolio growth potential, and long-term projections to support more resilient retirement plans.
How can a financial planner help keep retirement planning on track?
Retirement planning involves monitoring contribution limits, tax rules, deadlines, and income strategies year after year. A financial planner helps coordinate these moving parts into a cohesive plan. Truvium Wealth Management works with clients to track key deadlines, adapt strategies to changing tax laws, and build retirement plans that evolve with their goals rather than remaining stagnant.
About Scott
Scott Gegerson is the President of Truvium Wealth Management, a holistic financial planning firm based in Garden City, New York, serving individuals and business owners nationwide. He develops personalized financial plans and builds lasting client relationships grounded in trust and education. Since starting his career as a financial planner in 2001, Scott has been dedicated to helping clients grow and preserve their wealth. His passion stems from personal family experiences with poor financial planning, inspiring him to help his clients avoid similar pitfalls.
With a bachelor’s degree from Villanova University and the CERTIFIED FINANCIAL PLANNER® designation, Scott leads Truvium’s comprehensive approach to wealth management. He brings together advisors, attorneys, CPAs, and other professionals to create cohesive, streamlined financial strategies. His clients appreciate the firm’s white-glove service, personalized guidance, and commitment to alleviating financial stress.
Based in Rockville Centre, NY, Scott is a devoted father and active community member, helping out with his kids’ sports and volunteering locally. He enjoys golf, skiing, surfing, and leading a healthy lifestyle. Scott is also committed to cancer research through the Leukemia & Lymphoma Society, honoring his parents’ memory. To learn more about Scott, connect with him on LinkedIn.