Over 50? Higher Limits, New Rules for Retirement in 2026

Holly M. Knott, CFP®
Vice President and Senior Wealth Planning Officer
Washington Trust Wealth Management

The new year is upon us, and 2026 brings significant changes that affect how you earn income, take deductions, and fund retirement. Here’s what you need to know.

Retirement Plans: Super Catch-Up at Age 60

A major retirement change arrives for individuals born in 1963–1966, who are now eligible for an enhanced “super catch-up” contribution at age 60.ⁱ

• Catch-up limit increases to $11,250 (from $8,000)
• However, if you earned more than $150,000 from the same employer in the prior year, your catch-up contribution must be Roth (after-tax) or may not be allowed at all.

This change can increase current-year taxes, making it critical to adjust payroll withholdings in advance.

New Roth Age-Based Catch-Up Requirement 

Starting in 2026, a rule from the SECURE 2.0 Act changes how catch-up contributions are taxed for older high-earning workers.ⁱⁱ

• If you are age 50 or older and your prior-year FICA wages exceed $150,000, any catch-up contributions to a 401(k), 403(b), or governmental 457(b) in 2026 must be made on a Roth (after-tax) basis.
• This means you cannot make those catch-up contributions as pre-tax deferrals if your income is above that threshold.

Traditionally, catch-up contributions could be made pre-tax, lowering taxable income today. Under this rule, high earners must instead pay tax before contributing those extra dollars, which could change year-of-contribution tax planning.

2026 Contribution Limit Increases (Traditional and Roth IRAs)

For 2026, contribution limits for both Traditional and Roth IRAs have increased.ⁱⁱⁱ

• Standard limit (all ages): $7,500 in 2026 (up from $7,000 in 2025).
• Catch-up for age 50+ (IRA): An extra $1,100, so total age-50+ contributions up to $8,600.
• Income phase-outs: The income brackets for Roth IRA eligibility and traditional IRA deductibility are also indexed upward for 2026.

401(k), 403(b), 457(b), and Thrift Savings Plan Limits 

Contribution limits for employer-sponsored retirement plans have also increased for 2026.^iv

• Standard elective deferral limit: $24,500 in 2026 (up from $23,500 in 2025).
• Catch-up limit for age 50 and over: $8,000 additional.
• “Super catch-up” for ages 60–63: $11,250 (no change from 2025).

These limits include pre-tax and/or Roth contributions, and employer contributions are counted separately under overall defined contribution limits.

Enhanced Deduction for Seniors

A new tax deduction for U.S. taxpayers age 65 and older allows eligible seniors to reduce their taxable income by up to:

• $6,000 for a single filer, or
• $12,000 for a married couple filing jointly (if both spouses are age 65 or older).^v

This is in addition to the regular standard deduction and the extra standard deduction that seniors already receive under existing tax rules. It applies whether you itemize or take the standard deduction, giving flexibility in how you file. However, the deduction begins to phase out and reduce gradually once your modified adjusted gross income (MAGI) exceeds certain thresholds ($75,000 for single filers, and $150,000 for married filing jointly).

SALT Deduction Expansion

The long-debated SALT (state and local tax) deduction cap increases from $10,000 to $40,000—but only for households with income under $500,000, with a phaseout that ends at $600,000. Single filers often benefit the most, as their income may fall below the phaseout threshold while still paying significant state and property taxes.^vi

AMT Is Back (for some)

The Alternative Minimum Tax (AMT) is once again relevant for very high-income households:

• Lower thresholds mean more taxpayers may trigger AMT.
• Certain municipal bonds—especially private activity bonds—are added back as AMT preference items.
• Other preference items can also increase exposure.

This won’t affect everyone, but for those with complex income, incentive compensation, or specialized bond holdings, an AMT checkup with your wealth advisor is essential.

2026 Retirement Contribution Limits (Quick Reference)

Washington Trust Wealth Management is Here to Help

Retirement and tax planning changes in 2026 introduce additional complexity for investors over age 50, particularly around contribution limits, catch-up rules, and tax treatment. Our qualified advisors can help you understand how these updates apply to your individual situation and help you to integrate them into your overall wealth strategy, ensuring your plan remains tax-efficient and aligned with your long-term goals.