Aspen Grove Notes - January 2026

Aspen Grove Asset Management

Retirement Savings Update - 2026 Contribution Limits & Key Changes

As we begin 2026, the IRS has released the latest inflation-adjusted contribution limits for retirement plans. These updates give investors more room to save while continuing the tax advantages that make retirement accounts a central part of long-term planning. 

Traditional & Roth IRA Limits

For 2026, the IRA contribution limits are: 

• Standard contribution (under age 50): $7,500 (up from $7,000 in 2025) 

• Catch-up (age 50+): an additional $1,100 (up from $1,000), for a total of $8,600 (up from $8,000) 

Income limits for Roth IRAs and for deducting Traditional IRA contributions have also increased. These limits may affect how much you can contribute or deduct, so it’s important to review your personal situation with our firm or your CPA. 

401(k), 403(b), 457 & Thrift Savings Plan (TSP)

Workplace retirement plans also saw their limits rise for 2026: 

• Standard contribution (under age 50): $24,500 (up from $23,500 in 2025) 

• Catch-up (age 50+): an additional $8,000 (up from $7,500), for a total of $32,500 (up from $31,000) 

• Special catch-up (ages 60–63): an additional $11,250 (unchanged), for a total of $35,750 

What This Means for Your Retirement Strategy

Higher limits mean more opportunities to save in tax-advantaged accounts. This is a good time to review: 

• Whether you should increase IRA contributions 

• How much should go to Roth vs. traditional accounts 

• How your workplace plan and IRA can work together 

• Any income-related limitations that might apply to your situation 

We recommend consulting with our firm or your CPA before making changes to ensure your contributions are optimized for your personal circumstances. 

Best,

Ethan Pflug

Financial Advisor & Director of Business Development

Aspen Grove Asset Management

Disclosures:

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor."

AGP Franklin, LLC ("AGP Franklin") is a registered investment advisor. Advisory services are only offered to clients or prospective clients where AGP Franklin and its representatives are properly licensed or exempt from licensure.