Each tax year brings small adjustments to retirement-account limits, capital-gains brackets, and inflation-adjusted figures. Here are the 2026 changes that matter most for individual investors.
Retirement Account Limits
- 401(k) employee contribution: increased modestly from the prior year. Plus a catch-up for those 50+, and an enhanced catch-up for 60-63 under SECURE 2.0.
- IRA contribution: up slightly, plus a catch-up at 50+.
- HSA contribution: increased for both single and family coverage.
Max out the employer match, then the IRA, then top up the 401(k) toward the new limits.
Capital Gains Brackets
The 0%, 15%, and 20% long-term capital-gains brackets shift up with inflation each year. For 2026, more income fits inside the 0% LTCG bracket than the prior year — a small but real benefit for retirees and lower-bracket earners.
Use our Stock Profit Calculator to compute the gain on prospective sales and pair it with your bracket position.
Dividend Taxation
Qualified dividends continue to be taxed at the same rates as long-term capital gains (0/15/20). Ordinary dividends are taxed at your marginal income rate.
RMD Age
The Required Minimum Distribution starting age remains 73 for those who turn 73 in 2026 or later. (For those born in 1960 or later, it will rise to 75 starting in 2033 under SECURE 2.0.)
Wash Sale Rules
Unchanged: selling a security at a loss and buying a "substantially identical" security within 30 days disallows the loss. Watch for this in tax-loss harvesting between similar index funds.
What to Do
- Top up retirement contributions early in the calendar year — more time in the market.
- Verify cost basis at your broker, especially for DRIP positions where lots accumulate. Our Stock Cost Basis Calculator is useful for sanity-checking.
- Plan capital-gain harvesting if you have years where you'll be temporarily in the 0% LTCG bracket.
- Tax-loss harvest any positions that are below basis in taxable accounts.
Disclaimer
This article is informational only and is not tax or legal advice. Consult a qualified CPA or Enrolled Agent for your specific situation.
Bottom Line
The 2026 tax changes are incremental, not disruptive. Max out the new contribution limits, watch for the wider 0% LTCG bracket, and verify your cost basis records before any large sales.
Frequently Asked Questions
What retirement account contribution limits typically change each year?
Contribution limits for 401(k)s, IRAs, and HSAs are generally adjusted periodically for inflation, along with catch-up contribution amounts for those 50 and older, plus an enhanced catch-up for ages 60–63 under SECURE 2.0. These limits change from year to year, so investors should verify the current limits directly with the IRS or their plan provider rather than relying on older figures. Contributing enough to capture any employer match is typically prioritized before maximizing further contributions.
At what age do Required Minimum Distributions (RMDs) generally start from a Traditional IRA or 401(k)?
Under current rules, RMDs generally must begin at age 73, and this age is scheduled to rise to 75 for individuals born in 1960 or later under provisions in the SECURE 2.0 Act. Missing an RMD can trigger a significant excise tax penalty, so tracking your specific required start date is important. Because retirement account rules are complex and subject to change, checking current IRS guidance or consulting a tax professional is generally recommended.
What is the wash sale rule and how does it affect tax-loss harvesting?
The wash sale rule disallows a tax deduction for a loss if you sell a security at a loss and then buy a "substantially identical" security within 30 days before or after that sale. This commonly trips up investors trying to harvest losses between very similar index funds tracking the same market segment. Because the rule's boundaries can be nuanced, and this is general information rather than tax advice, consulting a qualified tax professional is generally recommended before executing loss-harvesting trades.
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