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.

Gift and Estate Taxes

For 2026, the annual exclusion for gifts remains $19,000 per person. The
estate tax exemption increases to $15 million for individuals and $30
million for those filing jointly.

Keep in mind that we provide updates for informational purposes only, so
consult with your tax professional before making any changes in
anticipation of the new 2026 levels. You can also contact our offices, and
we can provide you with information about the pending changes.

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Want to learn more about new contribution limits or have other investment questions? Contact Pacific NW Investment Services Financial Advisor, Ron Barnette, today!

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*New account with Pacific NW Investment Services must be opened with a minimum of $25,000 by May 31, 2026. Existing clients with Pacific NW Investment Services eligible with a minimum of $25,000 new money deposited by May 31, 2026. A $100 Visa gift card will be sent on or around 90 days after the account has been opened or funded. Account verification may be required. Bonus may be subject to taxes; please contact your tax advisor.