Updates
2026 retirement rule changes
Retirement rules change every year. We track the five sets of numbers that actually move a plan — the Social Security COLA, IRS contribution limits, IRMAA Medicare brackets, federal tax brackets, and RMD rules. When an agency publishes a change, we update the calculator’s data layer and post a plain-English summary here: what changed, who it affects, and which direction it pushes a typical plan.
Pro members can re-run their plan against every change. Personalized impact emails — a note within days of each change showing how it moves your own plan’s success probability — are coming to Pro. For now, Pro members can open any saved plan and re-run it against the updated 2026 figures. See what Pro includes
Every figure links to its primary government source (SSA, IRS, CMS). By Mindaugas Laucius · Last updated June 1, 2026.
2026 IRMAA brackets and Medicare premiums
The standard Part B premium jumped to $202.90/month (+9.7%). IRMAA income thresholds were indexed up — Tier 1 now covers MAGI up to $109,000 single / $218,000 joint.
| Item | 2025 | 2026 |
|---|---|---|
| Standard Part B premium | $185.00/mo | $202.90/mo |
| Part B annual deductible | $257 | $283 |
| IRMAA Tier 1 ceiling (single / joint) | $106,000 / $212,000 | $109,000 / $218,000 |
| Part D national base premium | $36.78/mo | $38.99/mo |
IRMAA remains a cliff, not a phase-in: cross a threshold by one dollar and the full surcharge applies for the entire year. The 2026 schedule runs six tiers up to $500,000 (single) / $750,000 (joint) — a statutory top bracket frozen since 2018.
Note the two-year lookback: your 2026 IRMAA is based on the MAGI from your 2024 tax return.
IRS raises 2026 retirement contribution limits
The 401(k) elective-deferral limit rose to $24,500 and the IRA limit to $7,500. Catch-up amounts increased, and high earners must now make catch-up contributions as Roth.
| Limit | 2025 | 2026 |
|---|---|---|
| 401(k)/403(b)/457/TSP deferral | $23,500 | $24,500 |
| Catch-up (age 50+) | $7,500 | $8,000 |
| Super catch-up (ages 60–63) | $11,250 | $11,250 |
| IRA contribution | $7,000 | $7,500 |
| IRA catch-up (age 50+) | $1,000 | $1,100 |
A maxed-out saver aged 60–63 can contribute $35,750 to a workplace plan in 2026 ($24,500 + $11,250).
New for 2026: if you earned more than $150,000 in 2025, your catch-up contributions must be made as Roth (after-tax) — a SECURE 2.0 provision now in force.
2026 RMD and QCD rules
The RMD age stays 73 for 2026, and the QCD limit rose to $111,000. The reduced missed-RMD penalty (25%, or 10% if corrected promptly) remains.
- RMD age is 73 in 2026. Anyone reaching 73 must begin required minimum distributions. Under SECURE 2.0 the age rises to 75 in 2033 — unchanged for 2026.
- QCD limit up to $111,000 per person (from $108,000), indexed for inflation; a qualifying couple can give up to $222,000. Qualified Charitable Distribution eligibility starts at age 70½, counts toward your RMD, and stays out of MAGI — useful for managing IRMAA.
- Missed-RMD penalty is 25% of the shortfall (down from 50%), reduced to 10% if corrected within the SECURE 2.0 window.
- Roth 401(k)/403(b) accounts have no lifetime RMDs (since 2024).
2026 federal tax brackets and the new senior deduction
The TCJA tax cliff didn't happen — OBBBA made the 10–37% brackets permanent. The 2026 brackets and standard deduction were inflation-adjusted, and a new $6,000 senior deduction is available to those 65+ through 2028.
The One Big Beautiful Bill Act (signed July 4, 2025) made the seven-bracket structure — 10 / 12 / 22 / 24 / 32 / 35 / 37% — permanent. There is no reversion to the old 15 / 25 / 28% rates.
For 2026, the brackets and standard deduction were inflation-adjusted. The standard deduction is $16,100 (single) / $32,200 (married filing jointly), plus the over-65 add-on — a single filer 65+ gets about $18,150; a couple both 65+ about $35,500.
New: a $6,000-per-person "senior deduction" for those 65 and older, available for tax years 2025–2028. It phases out above $75,000 MAGI (single) / $150,000 (joint) and disappears entirely at $175,000 / $250,000.
Despite the "no tax on Social Security" headlines, this is a deduction — it lowers an older filer's taxable income. It does not exempt Social Security benefits from tax, and the rules that determine how much of your benefit is taxable are unchanged.
What this means for your plan
Personalized impact emails are coming to Pro — a note within days of each change showing how it moves your own numbers, including your success probability. Not Pro yet? Run your free plan with the updated 2026 figures, or see how Pro tracks changes for you.
Social Security: 2.8% COLA and a higher wage base for 2026
Social Security benefits rose 2.8% for 2026 — about $56/month for the average retired worker. The maximum earnings subject to Social Security tax also climbed to $184,500.
Social Security benefits rose 2.8% for 2026 (up from 2.5% in 2025) — an average of about $56/month for retired workers. It takes effect with January 2026 payments (SSI recipients saw it December 31, 2025). The COLA is set by the rise in the CPI-W from the third quarter of 2024 to the third quarter of 2025.
Separately, the taxable maximum — the wage base on which Social Security tax is owed — rose to $184,500, up from $176,100 (+4.8%). The most anyone pays in Social Security tax in 2026 is $11,439.
Sources