As we start 2026, the IRS has updated retirement contribution amounts. With those changes, come financial planning opportunites and discussion points. If your New Year's resolution includes saving up to the max, or looking for new career opportunities, it is prudent to consider these thoughts with your financial plan.
Key 2026 Retirement Contribution Updates
401(k), 403(b), and 457 Plans
- Employee contribution limit increases to $24,500
- Catch-up contribution for ages 50–59 increases to $8,000
- Enhanced “super catch-up” of $11,250 for ages 60–63 remains in place, allowing even higher contributions for those nearing retirement
IRAs
- Traditional and Roth IRA contribution limit increases to $7,500
- Catch-up contribution for those age 50+ increases to $1,100
Income phase-out ranges for Roth IRA eligibility and deductible traditional IRA contributions have also increased, along with higher limits for other retirement and savings vehicles such as HSAs and employer-sponsored plans.
Why Contribution Timing and True-Up Provisions Matter
Maximizing retirement savings isn’t just about hitting the IRS limit, it’s also about understanding your employer’s plan design.
Many employer matches are calculated on a per-pay-period basis, meaning if you front-load contributions and hit the annual limit early, you could unintentionally miss out on employer matching dollars later in the year. Some plans address this through a true-up provision, which reconciles your total annual contributions to ensure you receive the full match you’re entitled to.
Not all plans offer a true-up, and many employees don’t realize the difference until it’s too late. Knowing whether your plan includes this feature can make a meaningful difference in the total value of your retirement benefits.
Don’t Leave Employer Match or Profit Sharing on the Table
Employer contributions, including matching and profit-sharing, are valuable benefits, but they often come with eligibility rules, timing requirements, and vesting schedules.
If you change jobs or leave an employer before certain dates, you may forfeit:
- A portion of the employer match
- A discretionary profit-sharing contribution
- Unvested employer dollars
Understanding how your plan handles these contributions, especially if you’re considering a job change, is critical to ensuring you don’t leave compensation behind (or that you negotiate some of these benefits with your new employer).
How Kindred Wealth Partners Can Help
Retirement planning goes beyond IRS limits. It requires understanding how your employer plan works, how your income is structured, and how career decisions impact your long-term goals.
At Kindred Wealth Partners, we help clients:
- Navigate updated retirement contribution limits
- Evaluate employer plans, including true-up provisions, matching formulas, and profit-sharing rules
- Coordinate contribution timing to maximize employer benefits
- Integrate workplace plans with IRAs and broader financial planning strategies
Whether you’re adjusting contributions for 2026, planning a job transition, or simply want clarity around your retirement plan, we’re happy to help you sort through the details and build a strategy that aligns with your goals.
If you have questions about how the 2026 changes apply to you, the Kindred Wealth Partners team would be glad to help.