Information about Medicare premiums and retirement plan contribution limits for 2026 was recently determined by the Centers for Medicare & Medicaid Services and the Internal Revenue Service.
The bottom line is that Medicare recipients will pay more for their benefits next year, and those saving for retirement will be able to set aside more in tax deferred savings. The following roundup provides the updated information.
Medicare
The basic Medicare Part B (medical insurance) monthly premiums will rise to $202.90 for 2026, up from $185 for 2025.
But upper-income seniors will have to pay even higher Part B and Part D (prescription drug coverage) premiums if their modified adjusted gross income for 2024 exceeded $218,000 for joint filers and $109,000 for single filers.
For Part B coverage, seniors pay the $202.90 basic monthly premium plus a surcharge, depending on income.
For Part D coverage, the average monthly premium lands somewhere between $40 – $45 (costs vary significantly by plan) plus a surcharge, depending on income.
The tables below summarize the impact for upper income Medicare premiums.
Source: Centers for Medicare & Medicaid Services (cms.gov)
Some individuals may qualify for a Medicare premium surcharge waiver.
People whose financial circumstances have changed since 2024 because of divorce, retirement, death of a spouse, or other major life-changing event may apply for relief.
You can request relief by filing Form SSA-44 with the Social Security Administration.
Retirement Plans
Key dollar limitations on retirement plans and accounts are rising in 2026; summary points are provided below.
401(k) Plans
- Contribution limit increases to $24,500, up $1,000 from 2025
- People born before 1977 can put in an additional $8,000 “catch up” contribution
- For people ages 60-63, the catch-up amount is $11,250
- Change for catch-up contributions: starting in 2026, if you are age 50 or older and your income exceeds $150,000 in 2025, your catch-up contributions must be made post-tax to a Roth 401(k)
SIMPLEs
- Contribution cap on most SIMPLEs rises to $17,000
- People born before 1977 can put in an additional $4,000 “catch up” contribution
- For people ages 60-63, the catch-up amount is $5,250
IRAs
- Contribution limit for traditional IRAs and Roth IRAs increases to $7,500, up $500 from 2025
- People born before 1977 can put in an additional $1,100 “catch up” contribution
- Income ceilings on Roth IRAs go up: contributions phase out for 2026 at adjusted gross incomes of $242,000 to $252,000 for couples filing jointly, and $153,000 to $168,000 for single filers and heads-of-households
- Tax deduction phaseouts for traditional IRAs are at higher income levels in 2026: from AGIs of $129,000 to $149,000 for couples covered by workplace retirement plans; $81,000 to $91,000 for single filers and household heads covered by such plans; if only one spouse is covered by a plan, the phaseout for deducting contributions for the uncovered spouse starts at $242,000 of AGI and ends at $252,000 of AGI
- The Qualified Charitable Distribution (QCD) cap is $111,000, up $3,000 from 2025; people 70 ½ and older can transfer up to $111,000 from an IRA directly to charity; QCDs count as part or all of your yearly Required Minimum Distribution (RMD), but they are not taxable and are not added to your AGI or modified AGI