With 2026 upon us, individuals and business owners should be aware of some of the more important (and commonly referenced) thresholds and limits for the new year:
Retirement Plans:
Annual Contribution Limit (401k, 403b, TSP): $24,500
Secure 2.0 “Super” Catch-Up Limit (participants 60-63): $11,250
General Catch-up Contribution Limit (participants 50+): $8,000
Plan Combined Contribution Limit (employer + participant): $72,000
IRA contribution limit: $7,500
IRA Catch-Up Contribution Limit (participants 50+): $1,100
CLIENT TAKEAWAY: Retirement plan participants – particularly those 50 or over – should review these new limits with their tax and financial advisors and determine appropriate participation levels to maximize both long-term retirement savings benefits and current tax reductions. Additionally, employers who match plan participant contributions in retirement accounts should be aware of the increase to the amount their employees are eligible to contribute to these accounts and budget accordingly.
Business and Pass-Through:
Qualified Business Income Threshold: $201,750 (single) $403,500 (married)
QBI Phase-In Range Limit: $276,750 (single) $553,500 (married)
SALT Deduction Cap: $40,400
Section 179 Expense Limitation: $2,560,000
Section 179 Purchase Limit (Phase-Out Threshold): $4,090,000
CLIENT TAKEAWAY: Businesses investing in machinery, vehicles, or other qualifying property will benefit from the more favorable Section 179 rules for bonus depreciation/expensing in 2026. In addition, small businesses located in jurisdictions that provide for a Pass-Thru Entity (PTE)-level tax, and who are eligible to take advantage of the increased SALT deduction cap through a PTE tax election, should work with their tax advisors to coordinate PTE and QBI savings to maximize the combined benefits of these provisions.
Are you a business owner who would like to speak about tax considerations for your business? Contact Tim Canney, chair of the Business and Tax Practice at Bulman Dunie, at (301) 656-1177 x331 or tcanney@bulmandunie.com.
