SG Accounting Services LLC

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New Contribution and Gift Tax Limits for 2026

Tax-advantaged savings accounts Type2025 limit2026 limitChange401(k), 403(b), 457(b), and their Roth equivalents$23,500$24,500+$1,000Catch-up contribution, ages 50+$7,500$8,000+$500Catch-up contribution, ages 60–63$11,250$11,250No changeTraditional and Roth IRAs$7,000$7,500+$500Catch-up contribution, ages 50+$1,000$1,100+$100Health savings accountIndividual: $4,300Family: $8,550Individual: $4,400Family: $8,750Individual: +$100Family: +$200Catch-up contribution, ages 55+$1,000$1,000No changeSEP-IRA* and overall defined contribution plan limit†$70,000$72,000+$2,000SIMPLE IRA and SIMPLE 401(k)$16,500$17,000+$500Catch-up contribution, ages 50+$3,500$4,000+$500Catch-up…

How to achieve financial independence

Financial independence isn’t a one-time event—it’s a system you build and refine. Keep it simple and consistent. 1. Know your numbersFigure out what you own, what you owe, and your net worth. No guessing—clarity first. 2. Define your version of “enough”Forget flashy goals. Decide what kind of life genuinely matters…

Tax Tip – 529 Plan rule change

Named after their corresponding section of the IRS tax code, 529 plans are tax-advantaged educational savings accounts that let Americans put aside money tax-free to pay for education. A rule change to 529 plans gives families a new reason to start one right away. Introduced in 1986, 529 plans have had…

EV Credits – 2023

If you bought and placed in service a new qualified plug-in electric vehicle (EV) or fuel cell vehicle (FCV) on January 1, 2023 or later and meet certain income limitations, you may be eligible for a clean vehicle tax credit up to $7,500 under Internal Revenue Code Section 30D. Qualified Manufacturers of…

401(k) — Limits Increased

Next year (2023), the contribution cap for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan (TSP) is going up by almost 10 percent. Here’s what you need to know about the new limits coming in 2023. The contribution limit for workplace retirement…

Last Minute Tax tips

1. You Can Still Open an IRA for the 2021 Tax Year Saving for retirement is a core element of many Fool members' financial plans, and IRAs play a vital role in preparing your finances for your golden years. Although contribution limits on IRAs -- $6,000 for those under age…

Tax Tips : 2022

1. File early and accurately. So many details associated with filing taxes are outside of a filer’s control. Filers should prepare early and file a return that goes through without delay, accessing all the deductions and credits that can reduce tax liability and boost refund sizes. Specifically, filers should keep…

Tax Tips for the Individual Investor

A few simple tax tips of record-keeping, investing, and reporting can apply to most investors and can help you save money. Reinvest Dividends Investors can limit capital gains on the sale of mutual fund shares by automatically reinvesting dividends in the fund. Reinvested dividends increase your investment in a fund, effectively reducing your taxable…

Child Tax Credit 2021

The child tax credit is bigger and better than ever for 2021, which should make things a little easier for families taking a financial hit during the COVID-19 pandemic. Thanks to the recently enacted $1.9 trillion American Rescue Plan Act of 2021 ("American Rescue Plan"), the credit amount is significantly…