IRS and Social Security: Understanding what changed in 2025 will help you navigate 2026

As 2025 draws to a close and 2026 approaches, our December blog will address two topics of utmost importance: New IRS contribution limits and Social Security. 

The Internal Revenue Service recently released new limits for 2026. Although these adjustments won’t bring any major changes, there are some minor elements to note.

Individual Retirement Accounts (IRAs)

IRA contribution limits are up $500 in 2026 to $7,500. Catch-up contributions for those over age 50 are up $100 to $1,100, bringing the total limit to $8,600.

Roth IRAs
The income phase-out range for Roth IRA contributions increases to $153,000-$168,000 for single filers and heads of household. For married couples filing jointly, the phase-out will be $242,000 to $252,000. Married individuals filing separately see their phase-out range remain at $0-10,000.

Workplace Retirement Accounts
Those with 401(k), 403(b), 457 plans, and similar accounts will see a $1,000 increase for 2026, the limit rising to $24,500. Those aged 50 and older will now have the ability to contribute an extra $8,000, bringing their total limit to $32,500. Those aged 60, 61, 62, and 63 may enjoy a higher catch-up contribution of $11,250, raising their total contribution limit to $35,750.

SIMPLE Accounts
A $500 increase in limits for 2026 gives individuals contributing to this incentive match plan a $17,000 stoplight. Pursuant to the Secure Act 2.0, certain applicable plans have an increased limit of $18,100.

In addition to contribution limit changes, the IRS also announced several other amendments for 2026, including an increase to the annual exclusion for gifts to $19,000 per person and an increase to the estate tax exclusion threshold. 

Keep in mind that Everest Financial Inc. provides updates for informational purposes only, so consult with your tax professional before making any changes in anticipation of the new 2026 levels.

And if you haven't already, contact our offices to schedule your annual review so we can provide you with up-to-date information about pending changes, wealth management, and retirement planning. 

Speaking of changes ...

2025 brought several changes in terms of investing and saving for your future and the futures of your loved ones. Namely, the Social Security Fairness Act was signed into law in January 2025. For some, this means big changes, and it also serves as a reminder that those who are nearing age 62 will be making that all-important decision about whether to start drawing Social Security as soon as it's available to you or to wait.

Among my designations is certification by the NSSA -- the National Social Security Advisors. This group was created in 2013 "to equip advisors with the necessary knowledge and skills to navigate the complexities of Social Security benefits," according to the NSSA website.

Because I've completed the required training, I can share information about the following:

• Social Security Overview:History, future trends, and benefit computations.
• In-Depth Benefit Analysis:Retirement benefits, spousal elections, surviving spousal benefits, and more.
• Critical Regulations:WEP/GPO, benefits taxation, and COLA.
• Benefit Calculations: How they are computed and the impact of various factors.
• Spousal and Survivor Benefits:Complexities of benefits for spouses, divorced individuals, and surviving spouses.
• Earnings Impact:How benefits are affected by earnings and public employee pensions.
• Strategic Planning:Maximizing returns, including early reductions and delayed credits.
• Special Cases:Exploring options for children, single individuals, and the appeals process.

What does all this mean for you? It's time to come into the office for a visit so we can go over what you currently have in place, what the most recent changes might mean for you, and what options are available to best address not only your current financial status but what's coming down the road.

There's no need to navigate these sometimes choppy waters when it comes to investing in your future. We're here to help you make informed choices.

To schedule a meeting with me, call Everest Financial at 859-291-9290, send an email to jdduffey@everestfinancial.net, or visit our website and fill out the online form at everestfinancial.net/contact.