Retirement Council, Inc.
Quick Facts
Retirement Planning
Employee/individual contribution limits
Elective deferral limits
2025
2026
401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs 1 [Includes Roth 401(k) and Roth 403(b) contributions]
SIMPLE 401(k) plans and SIMPLE IRA plans1
Lesser of $23,500 or 100% of participant's compensation
Lesser of $16,500 or 100% of participant's compensation
Lesser of $24,500 or 100% of participant's compensation
Lesser of $17,000 or 100% of participant's compensation
¹ Must aggregate employee contributions to all 401(k), 403(b), SAR-SEP, and SIMPLE plans of all employers. 457(b) plan contributions are not aggregated. For SAR-SEPs, the percentage limit is 25% of compensation reduced by elective deferrals (effectively, a 20% maximum contribution).
IRA contribution limits
2025
2026
Traditional IRAs
Roth IRAs
Lesser of $7,000 or 100% of earned income
Lesser of $7,000 or 100% of earned income
Lesser of $7,500 or 100% of earned income
Lesser of $7,500 or 100% of earned income
Additional "catch-up" limits (individuals age 50 or older)
2025
2026
401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs²
Catch-up limit if age 60-63
SIMPLE 401(k) plans and SIMPLE IRA plans
Catch-up limit if age 60-63
IRAs (traditional and Roth)
$7,500
$11,250
$3,500
$5,250
$1,000
$8,000
$11,250
$4,000
$5,250
$1,100
² Special catch-up limits may also apply to 403(b) and 457(b) plan participants.
Employer contribution/benefit ³ limits
Defined benefit plan limits
2025
2026
Annual contribution limit per participant
Annual benefit limit per participant
No predetermined limit. Contributions based on amount needed to fund promised benefits
Lesser of $280,000 or 100% of average compensation for highest three consecutive years
No predetermined limit. Contributions based on amount needed to fund promised benefits
Lesser of $290,000 or 100% of average compensation for highest three consecutive years
Defined contribution plan limits [qualified plans, 403(b) plans, SEP, and SIMPLE plans]
2025
2026
Annual addition limit per participant (employer contributions; employee pre-tax, after-tax, and Roth contributions; and forfeitures) (does not apply to SIMPLE IRA plans)
Maximum tax-deductible employer contribution [not applicable to 403(b) plans]
Lesser of $70,000 or 100% (25% for SEP) of participant's compensation
25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans
Lesser of $72,000 or 100% (25% for SEP) of participant's compensation
25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans
³ For self-employed individuals, compensation generally means earned income. This means that, for qualified plans, deductible contributions for a self-employed individual are limited to 20% of net earnings from self-employment (net profits minus self-employment tax deduction), and special rules apply in calculating the annual additions limit.
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Compensation limits/thresholds
Retirement plan compensation limits
2025
2026
Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans and SEPs)
Compensation threshold used to determine a highly compensated employee
Compensation threshold used to determine a key employee in a top-heavy plan
Compensation threshold used to determine a qualifying employee under a SIMPLE plan
Compensation threshold used to determine a qualifying employee under a SEP plan@
$350,000
$160,000 (when 2025 is the look-back year)
$1 for more-than-5% owners, $230,000 for officers, $150,000 for more-than-1% owners
$5,000
$750
$360,000
$160,000 (when 2026 is the look-back year)
$1 for more-than-5% owners, $235,000 for officers, $150,000 for more-than-1% owners
$5,000
$800
Traditional deductible IRA income limits — Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers covered by an employer-sponsored plan and filing as:
2025
2026
Single
Married filing jointly
Married filing separately
$79,000 - $89,000
$126,000 - $146,000
$0 - $10,000
$81,000 - $91,000
$129,000 - $149,000
$0 - $10,000
Traditional deductible IRA income limits — Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers not covered by an employer-sponsored retirement plan but filing a:
2025
2026
Joint return with a spouse who is covered by an employer-sponsored retirement plan
$236,000 - $246,000
$242,000 - $252,000
Qualified charitable distribution:
2025
2026
Annual amount not includible in gross income
One-time exclsusion for transfer to split-interest entity
$108,000
$54,000
$111,000
$55,000
Protection Planning
Eligible long-term care premium deduction limits:
LTC premium deduction limits
2025
2026
Age 40 or under
Age 41-50
Age 51-60
Age 61-70
Over age 70
$480
$900
$1,800
$4,810
$6,020
$500
$930
$1,860
$4,960
$6,200
Per diem limit:
LTC per diem limits for periodic payments received under qualified long term care policies
2025
2026
Periodic payments for qualified long-term care insurance/certain life insurance
$420
$430
Estate Planning
Key indexed figures
2025
2026
Annual gift exclusion:
Gift and estate tax applicable exclusion amount:
Noncitizen spouse annual gift exclusion:
Generation-skipping transfer (GST) tax exemption:
Special use valuation limit (qualified real property in decedent's gross estate):
$19,000
$13,990,000 + DSUEA¹
$190,000
$13,990,000²
$1,420,000
$19,000
$15,000,000 + DSUEA¹
$194,000
$15,000,000²
$1,460,000
¹ Basic exclusion amount plus deceased spousal unused exclusion amount (exclusion is portable for 2011 and later years)
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² The GST tax exemption is not portable
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2025 and 2026 gift and estate tax rate schedule
Taxable Estate
Tentative Tax Equals
Plus
Of Amount Over
0 - $10,000
$10,000 - $20,000
$20,000 - $40,000
$40,000 - $60,000
$60,000 - $80,000
$80,000 - $100,000
$100,000 - $150,000
$150,000 - $250,000
$250,000 - $500,000
$500,000 - $750,000
$750,000 - $1,000,000
$1,000,000 +
$0
$1,800
$3,800
$8,200
$13,000
$18,200
$23,800
$38,800
$70,800
$155,800
$248,300
$345,800
18%
20%
22%
24%
26%
28%
30%
32%
34%
37%
39%
40%
$0
$10,000
$20,000
$40,000
$60,000
$80,000
$100,000
$150,000
$250,000
$500,000
$750,000
$1,000,000
Credit shelter amount $13,990,000 in 2025 and $15,000,000 in 2026
Unified credit amount $5,541,800 in 2025 and $5,945,800 in 2026
Required Minimum Distribution (RMD)
The grid below represents the required age to begin RMD's based on the owner's date of birth.
Owner Date of Birth
Required Age
06/30/1949 or earlier
07/01/1949 - 12/31/1950
01/01/1951 - 12/31/1959
01/01/1960 and beyond
70.5
72
73
75
Unearned income Medicare contribution tax ("net investment income tax")
Amount of tax
2025
2026
Tax percentage
3.80%
3.80%
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding:
2025
2026
Individuals
Married filing jointly
Married filing separately
$200,000
$250,000
$125,000
$200,000
$250,000
$125,000
Medicare 2026 Information
Part A Premium
$565.00
Most people do not pay a monthly premium for Part A. Deductibles and co-pays are reset each benefit period. A benefit period begins the day you go to a hospital or skilled nursing facility. The benefit period ends when you haven't received any hospital care (or skilled care in a SNF) for 60 days in a row. If you go into the hospital after one benefit period has ended, a new benefit period begins. You must pay the inpatient hospital deductible for each benefit period. There is no limit to the number of benefit periods you can have.
Deductible 1-60 days
Co-payment 61-90 days
Co-payment 91-150 days
Co-payment 151 days or more
Skilled Nursing Confinement
$1,736
$434 a day maximum of $13,020
$868 a day maximum of $52,080
You Pay All Costs
First 20 Days You receive 100% Coverage
Co-payment Days 21- 100
$217.00 a day maximum of $17,360
When you are hospitalized for at least 3 days and enter a Medicare approved skilled nursing facility within 30 days after hospital discharge and are receiving skilled nursing care.
After 100 Days You Pay All Costs
Part B Monthly Premium
The standard Part B premium amount in 2026 will be $202.90. Most people will pay the standard Part B premium amount. If you modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you'll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium
Individual Filer
Less than or equal to $109,000
$109,001 - $137,000
$137,001 - $171,000
$171,001 - $205,000
$205,001- $499,999
Greater than or equal to $500,000
Part B Deductible
High Deductible Plan F/G
Joint Filer
Less than or equal to $218,000
$218,001 - $274,000
$274,001 - $342,000
$342,001 - $410,000
$410,001 - 749,999
Greater than or equal to $750,000
$283.00 annually
$2,950.00
$202.90 monthly
$284.10 monthly
$405.80 monthly
$527.50 monthly
$649.20 monthly
$689.50 monthly
Click here for information on how to apply for Medicare Online
You may also visit a local Social Security Office or call Monday to Friday 7AM-7PM
at (800) 772-1213
Source: Broadridge Investor Communications and Medicare.gov
Roth IRA compensation limits — Income phase-out range for determining ability to fund Roth IRA for taxpayers filing as:
2025
2026
Single
Married filing jointly
Married filing separately
$150,000 - $166,000
$236,000 - $246,000
$0 - $10,000
$153,000 - $168,000
$242,000 - $252,000
​$0 - $10,000