Introduction
Navigating retirement planning is more complex than ever—especially as tax laws and contribution limits shift from year to year. As we move into 2026, several new federal changes are set to influence how individuals save, invest, and manage taxable income.
At OneAZ Wealth Management, we understand how critical it is to stay ahead of these updates. Whether you’re preparing for retirement or already enjoying it, our advisors are here to help you make informed, confident decisions. Below, we break down the three most significant legislative changes that could impact your financial strategy this year and beyond.
- Roth‑Only Catch‑Up Contributions for High‑Income 401(k) Savers
Beginning in 2026, Secure 2.0 requires high‑income earners—those with $150,000+ in FICA wages from the prior year—to make their 401(k) catch‑up contributions exclusively to the Roth portion of their plan.
What’s Changing
- Base 401(k) limit: $24,500
- Catch‑up (age 50+): $8,000 — total of $32,500
- “Super catch‑up” (ages 60–63): $11,250 on top of the base limit
Planning Considerations
- If your employer does not offer a Roth 401(k), consider maximizing your traditional 401(k) and adding an IRA:
- IRA limit age 50+: $8,600
- Under 50: $7,500
- You may still make your base 401(k) contributions on a pre‑tax basis.
- A taxable brokerage account may offer additional flexibility for long‑term investors.
- Higher SALT (State and Local Tax) Deduction Amounts
Under the One Big Beautiful Bill Act (OBBBA), the SALT deduction cap increased from $10,000 to $40,000 beginning in 2025, remaining in place through 2030.
Why This Matters
Although SALT deductions aren’t specific to retirement accounts, they influence overall tax exposure—key for both pre‑retirees and retirees.
Planning Considerations
- The SALT deduction phases out above $500,000 MAGI.
- To stay under the threshold, consider:
- Prioritizing traditional, tax‑deferred contributions
- Maximizing HSA contributions
- Limiting income‑increasing strategies such as Roth conversions
- A New Senior Tax Deduction for Individuals 65+
Through 2028, individuals aged 65 and older may claim a new $6,000 senior tax deduction. Married couples filing jointly may claim $12,000 if both spouses qualify.
2026 Deduction Snapshot
- Single filer 65+: $24,150 total deduction
- Married filing jointly 65+: $47,500 total deduction
Income Phaseouts
- Phaseout begins:
- $75,000 MAGI (single)
- $150,000 MAGI (joint)
- Fully phased out:
- $175,000 MAGI (single)
- $250,000 MAGI (joint)
Strategic Guidance
While reducing income to qualify for the deduction may be tempting, it should not override long‑term planning opportunities—such as Roth conversions during low‑tax years.
Ready to Strengthen Your Retirement Strategy?
Whether you're reviewing contributions, adjusting your tax plan, or preparing for income in retirement, our advisors are here to help.
- Schedule a complimentary consultation with a OneAZ Wealth Management Advisor
- Get personalized guidance tailored to your retirement goals
- Stay ahead of legislative changes with proactive planning