2025 Tax Information and IRS Updates
January 30, 2026 / Tax Related
2025 brought significant changes to the tax code. The One Big Beautiful Bill Act (OBBBA) brought many new tax law changes that commenced last year as well as making permanent many of the 2017 Tax Cuts and Jobs Act (TCJA) provisions that were scheduled to sunset at the end of 2025.
- For 2026, several key savings and retirement contribution limits are getting a modest boost, giving you a bit more room to save. Roth IRA contributions are increasing from $7,000 to $7,500, and if you’re age 50 or older, the catch-up amount rises slightly from $1,000 to $1,100.
- Workplace retirement plans are also seeing higher limits: the elective deferral limit for 401(k), 403(b), and most 457(b) plans moves up from $23,500 in 2025 to $24,500 in 2026, with the age-50-plus catch-up increasing from $7,500 to $8,000. The “super” catch-up for those ages 60–63 remains unchanged at $11,250.
- Health Savings Accounts are also getting a small increase. For self-only coverage, the HSA contribution limit rises from $4,300 to $4,400, while family coverage increases from $8,550 to $8,750. The HSA catch-up contribution for those age 55 and older stays the same at $1,000. Overall, these incremental increases can add up, especially if you’re taking advantage of multiple accounts as part of your broader savings strategy.
A couple of key notes:
- If you are savings into a Roth IRA with us on a monthly basis, be sure to give us a call if you would like to bump up your monthly contributions to keep up with the new maximum.
- If you are completing catch-up contributions into your work plan and are considered a high earner (more than $150,000 salary), note that your catch-up is required to go into your Roth 401(k) bucket.
There are other updates for the new year, such as the 2.8% Cost of Living Adjustment (COLA) for Social Security, income tax adjustments, and much more.
The charts below provide a timeline of major tax policy changes in the One Big Beautiful Bill Act and how key deductions benefits phase out our are elimiated based on 2025 income thresholds and filing status.
