2025/2026 Cost of Living Adjustments
| Traditional and Roth IRAs
Annual Regular Contribution Limits
| | Contribution Year | Contribution Limit
Under
Age 50 | Contribution Limit
Age 50 And Over |
| 2025
2026 | $7000
$7500 |
$8000
$8600*
* Catch-up contribution increased
from $1000 to $1100 for 2026 |
Traditional IRA Deductibility Modified Adjusted
Gross Income Limits for Employer- Sponsored Plan Participants
(including SEP and SIMPLE IRAs) are as follows for
2025/2026:
| SINGLE TAXPAYERS AS ACTIVE PARTICIPANT OF QP TRADITIONAL IRA DEDUCTION ELIGIBILTY AND
MAGI IS: Tax Years Full Deduction Partial Deduction
No Deduction 2025 <$79,000
$79,000 - $89,000 >$89,000 2026 <$81,000
$81,000 - $91,000 >$91,000
| | MARRIED TAXPAYERS AND BOTH ARE ACTIVE PARTICIPANTS OF QP
OR, THE COVERED SPOUSE'S ELIGIBILITY IF ONLY ONE SPOUSE
IS COVERED
TRADITIONAL
IRA DEDUCTION ELIGIBILTY AND JOINT MAGI IS: Tax
Years Full Deduction
Partial Deduction
No Deduction 2025 <$126,000 $126,000 - $146,000
>$146,000 2026
<$129,000
$129,000 - $149,000 >$149,000
| | ONE SPOUSE IS ACTIVE PARTICIPANT AND ONE
SPOUSE IS NOT COVERED: NON-COVERED SPOUSE MAY TAKE THE DEDUCTION IF JOINT MAGI IS:
Tax Years Full Deduction Partial Deduction No Deduction 2025
<$236,000
$236,000 - $246,000 >$246,000 2026 <$242,000
$242,000 - $252,000 >$252,000 |
|
Simplified
Employee Pension Plan (SEP)
Annual Regular Contribution Limits
|
| Contribution Year
| Compensation
Base | Maximum Contribution Limit | |
2025
|
0-25% of up to $350K
| $70,000
| |
2026
| 0-25% of up to
$360K | $72,000 | |
Savings
Incentive Match Plan for Employees/Employers (SIMPLE IRA)Annual Regular Contribution Limits
| | Contribution Year | Annual
Salary Deferral Contribution Limit
Under Age 50
| Annual
Salary Deferral Contribution Limit
Age 50 And Over |
Additional Catch-Up
Contribution
of $5,250 for Employees
Age 60-63 Total | |
2025
|
$16,500
|
$20,000
| $21,750 | | 2026
| $17,000
| $21,000
| $22,250
|
|
ROTH IRA CONTRIBUTION ELIGIBILITY
MODIFIED
ADJUSTED INCOME PHASEOUT CHART |
| SINGLE TAXPAYERS
Tax Years Full
Contribution Partial Contribution No Contribution 2025
<$150,000
$150,000 - $165,000 >$165,000 2026 <$153,000 $153,000 - $168,000
>$168,000 | | MARRIED TAXPAYERS FILING JOINTLY
Tax
Years Full Contribution Partial Contribution No Contribution
2025
$236,000 $236,000 - $246,000
>$246,000 2026 <$242,000
$242,000 - $252,000 >$252,000
| |
HEALTH SAVINGS ACCOUNT Contribution Amounts 2025-2026
| |
Year | Contribution Limit
Under Age 55 Single Coverage
| Contribution Limit
Under Age 55 Family Coverage
| Additional Contribution Age 55 And Over |
|
2025
| $4,300 | $8,550
| $1000
| | 2026 | $4,400 | $8,750 |
$1000
|
High Deductible Health Plan (HDHP) Definition is as follows: Single HDHP minimum deductible $1,650 (2025) /
$1,700 (2026) Family
HDHP minimum deductible $3,300 (2025) / $3,400 (2026)
Out-of-Pocket Expense Limits:
Single HDHP $ 8,300 (2025),
$ 8,500 (2026) Family
HDHP $16,600 (2025), $17,000 (2026) Effective 2020: *
Over-the-counter drugs without a prescription and medical Televisits are now qualified tax-free medical expenses. | |