2026 IRS Contribution Limits for Retirement, 529, and HSA Accounts & Updated Federal Tax Brackets
- Nisha Mehta, MD
- Nov 19, 2025
- 6 min read
Updated: Dec 8, 2025
Each year, the Internal Revenue Service (IRS) releases the annual inflation adjustments for the upcoming tax year. These adjustments can impact tax brackets, contribution limits to tax-advantaged savings accounts, gifting tax exemptions (which impact 529 contribution limits), and more. Below, we cover the 2026 changes to federal tax brackets, contribution limits & phase out limits to 401(k)s and other employer-sponsored retirement accounts, IRAs, and HSAs. We also highlight other related tax changes that physicians in our online physician communities should be aware of, such as changes to flexible spending arrangements (FSAs), estate tax exclusions, and standard deduction amounts.Â
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What are the marginal tax rates for 2026?
While changes to the marginal tax rates were pending for 2026 as the 2017 Tax Cuts and Jobs Act (TCJA) was set to expire, this was extended indefinitely in 2025 under the One Big Beautiful Bill. The marginal tax rates for 2026 will remain:
10%
12%
22%
24%
32%
35%
37%
Related PSG resource:
What are the new federal tax brackets for 2026?
While the tax rates remain fixed, the IRS made inflation adjustments to which income falls within each tax rate. The new 2026 federal tax brackets by taxable income are:
Marginal tax rate | Single | Married filing jointly |
10%Â | $0 - $12,400Â | $0 - $24,800 |
12% | $12,401 – $50,400 | $24,801 - $100,800 |
22%Â | $50,401 - $105,700Â | $100,801 - $211,400Â |
24%Â | $105,701 - $201,775Â | $211,401 - $403,550 |
32% | $201,776 – $256,225 | $403,551 - $512,450 |
35%Â | $256,226 - $640,600Â | $512,451 - $768,700 |
37% | $640,601 and above | $768,701 and above |
Related PSG resource:
2026 IRS updates for tax-advantaged retirement savings plans
The annual inflation adjustments typically trigger changes to contribution limits to tax-advantaged retirement plans, which is good news for physicians who can max out these accounts each year. If you’re able to max these out, we recommend that you do! These plans can offer tax advantages for both W-2 and 1099 physicians. For 2026 (tax returns due in 2027), key changes to note include:
Employer sponsored plans such as 401(k)s, 403(b)s, 457s, and the TSP:
Annual employee deferral limit increased to $24,500
Catch-up contributions (ages 50+) increased to $8,000, for an increased total of $32,500
Higher catch-up contributions for ages 60-63 remained at $11,250, though the total increased accordingly to $35,750 (check to ensure your plan offers this option)
New in 2026: employees 50+ that earn more than $145,000 a year will need to make their catch-up contributions in after-tax dollars to a Roth account; you’ll no longer be able to get a tax deduction
Traditional IRAs
Contribution limit increased to $7,500
Catch-up contributions (ages 50+) increased to $1,100
Deduction phase out limits:
Individuals covered by workplace plan: increased to $81,000 - $91,000
Married filing jointly where individual who contributes is covered by workplace plan: increased to $129,000 - $149,000
Married filing jointly where individual is not covered by workplace plan, but spouse is: increased to $242,000 - $252,000
Roth IRAs:
Contribution limit increased to $7,500
Catch-up contributions (ages 50+) increased to $1,100
Eligibility phase out limits:
Single and head of household filers: increased to $153,000 - $168,000
Married filing jointly: increased to $242,000 - $252,000
As a reminder, if you’re in the majority of physicians who earn too much to contribute directly to a Roth IRA, there is still the option of a Backdoor Roth IRA you can consider. In addition, it’s worth noting that income limits do not apply to Roth contributions into an employer sponsored plan, like a Roth 401(k), so doctors can consider this option as well.
SIMPLE retirement accounts:
The amount individuals can generally contribute increased to $17,000
Certain applicable accounts have a higher contribution amount; this increased to $18,100 for 2026
Catch-up contributions for 50+ for most SIMPLE plans increased to $4,000; for certain other applicable accounts, the catch-up contribution for 50+ remained $3,850 (no changes for the higher catch-up contributions for ages 60-63)
Related PSG resources:
2026 IRS changes to Health Savings Accounts (HSAs) contribution limits
We love Health Savings Accounts as a tax-advantaged option to help our physician members achieve financial independence, so long as a high-deductible health plan (HDHP) fits their family’s medical needs.
Changes to HSA plans for 2026 include:
Self-only coverage: increased to $4,400
Family coverage: increased to $8,750
As a reminder, not all HDHP plans are qualified plans for a HSA, so double check during your open enrollment period when you’re signing up for your plan for the year.
If you have a FSA versus a HSA, see below.
Related PSG resource:Â
Changes to 529 college savings plans for 2026
As noted below, the annual gift tax exclusion remained the same from 2025 to 2026, which means that the annual contribution limit to 526 plans did not increase.
The annual limit remains $19,000. As a reminder, this is a per person amount. If you and your spouse have a child, you can each gift them $19,000, or $38,000 total. If you have two children, together you can give $38,000 to each child, for a total of $76,000 for the year.
As the annual gift tax limit didn’t change, contribution limits for superfunding a 529 plan will also remain the same.
Related PSG resources:
Other 2026 IRS tax updates physicians should know
Standard Deduction for Taxes
Along with the changes to the 2026 income tax rates, the IRS also increased the standard deduction for tax year 2026 (tax returns due in 2027) to:
$16,100 for single taxpayers
$32,200 for married couples filing jointly
$24,150 for heads of households
Alternative Minimum Tax
The Alternative Minimum Tax exemption amount for tax year 2026 increased to:
Unmarried individuals: $90,100 with a phase out beginning at $500,000
Married filing jointly couples: $140,200 with a phase out beginning at $1,000,000
Estate and Gift Taxes
For estate planning, the IRS released the following guidelines for 2026.
Estate tax exclusions increased to $15,000,000
The annual gift tax exclusion remained $19,000 (important for 529 plans)
Related PSG resource:
Contributions to Health Flexible Spending Arrangements (FSAs)
Voluntary employee contributions to health flexible spending arrangements increased in 2026 to $3,400.
For cafeteria plans that permit carryover of unused funds, the maximum carryover amount increased to $680 for 2026.
Conclusion
With the recent increases from the IRS, it’s the perfect time to check in on your retirement planning and make sure you’re fully capitalizing on the tax-advantaged savings options available to you, especially since W2 employed doctors don’t have as many options for tax savings available as 1099 physicians have. If your savings is automated, it might not automatically increase next year for the changes with inflation adjustments, so it’s worth double checking to make sure you max it out.
If you need help navigating the options available to you, as well as the contribution restrictions and limitations, we have a database of financial advisors who can help.
Related tax & retirement resources for doctors
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