As you sit down to do your (highly recommended!) 2026 financial planning, there are several new provisions and/or age-based milestones to be aware of as you set your vision for the new year.
Retirement Planning:
“Super” Catch-Up Retirement Plan Contributions: Starting last year, a higher “super” catch-up option became available for 401(k), 403(b), governmental 457(b) or SIMPLE IRA retirement plan participants who turn age 60, 61, 62 or 63 during the plan year.
- Note that the “super” catch-up replaces the regular catch-up contribution limit available to 401(k), 403(b) or governmental 457(b) plan participants age 50-59 or 64+.
- The “super” catch-up contribution limit for these plans is $11,250.
- If you contribute to a SIMPLE IRA, the rules are more complicated. Participants who turn age 60, 61, 62 or 63 during the plan year are eligible for a “super” catch-up of $5,250 for 2026 in addition to the regular age 50+ catch-up. The regular age 50+ catch-up limit depends on the number of employees at your company and the percentage that your employer contributes to the SIMPLE IRA on your behalf, so check with your HR department and/or plan administrator to see what you qualify for.
- We recommend checking with your plan administrator – especially if you participate in a SIMPLE IRA – to see how these rules apply to you, as the “super” catch-up provision is optional for plans to offer.
Mandatory Roth Catch-Up Rule (NEW for 2026): Starting this year, highly paid employees making catch-up retirement plan contributions will be required to make those catch-up contributions to a Roth account.
- This rule applies to you if you are age 50 or older, are making catch-up contributions to a retirement plan, and earned more than $150,000 in FICA wages last year.
- The mandatory Roth rule applies to 401(k), 403(b), and governmental 457(b) plans. The rule does not apply to SIMPLE IRA or traditional IRA catch-up contributions.
- Regular catch-up (age 50+) and “super” catch-up (age 60-63) contributions are subject to the Roth rule.
- Because the rule is based on prior year wages from your current employer, new employees are not affected in their first year of employment with a company.
- Retirement plans are not required to offer Roth contributions. If your plan does not offer Roth contributions and you are considered a highly paid employee for purposes of this rule, you are not eligible to make any catch-up contributions.
Tax Planning:
Required Minimum Distributions (RMDs): If you are turning 73 in 2026 or have recently inherited an IRA, it’s time to think about how RMDs will play into your cash flow strategy and taxable income for the year.
Temporary additional deduction for seniors (2025-2028): Taxpayers age 65+ will qualify for an additional standard deduction.
- $6,000 filing single; $12,000 married filing joint (MFJ) where both spouses are 65+.
- The additional deduction phases out gradually for higher-income households, starting at $75,000 single / $150,000 MFJ and fully phases out at $150,000 single / $150,000 MFJ.
Charitable giving plans:
- Qualified Charitable Distributions (QCDs): If you are a charitably inclined IRA owner age 70 ½ or older, you are eligible to make charitable contributions directly from your IRA, bypassing your taxable income. QCDs can be a powerful tax bracket management tool for those seeking to offset required minimum distributions (RMDs) or reduce IRA balances prior to reaching the RMD age.
- Above the line charitable deduction (NEW for 2026): Pursuant to the One Big Beautiful Bill Act (OBBBA), up to $1,000 filing single / $2,000 married filing joint in cash contributions to charity can soon be deducted above the line – as long as gifts are not made to SEC 509(a)(3) supporting organizations or donor advised funds.
- 5% AGI floor (NEW for 2026): For those who itemize deductions, OBBBA introduces a “floor” on deductibility of charitable contributions equal to 0.5% of adjusted gross income (AGI). The new law does specify which types of charitable contributions are reduced first by the AGI floor, so we recommend consulting with a tax preparer if this itemized deduction applies to you.
If you have questions on how any of these provisions impact your financial plan, our advisory team is here to guide you.
New to financial planning? We invite you to schedule a free introductory consultation to see how we can help you move forward with confidence.
Leah Levingston, CFP®
Financial Advisor
Alaska Wealth Advisors is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Alaska Wealth Advisors’ investment advisory services can be found in its Form ADV Part 2 and/or Form CRS, which is available upon request.
This material should not be construed as tax advice. You should always consult with your tax professional with regard to specific tax questions and obligations.
