Retirement tax planning strategies start with knowing your limits and your penalties. The contribution ceilings tell you how much you can defer now, and the distribution rules tell you what you'll owe later. Here are the 2026 figures and how we use them.

What are the 2026 retirement contribution limits?

The 401(k) limit is $24,500 and the IRA limit is $7,500 for 2026. Catch-up limits add $8,000 for 401(k) plans and $1,100 for IRAs at age 50 and over, and the higher 401(k) catch-up for ages 60 to 63 is $11,250.

Added up, a 52-year-old could defer $32,500 into a 401(k) ($24,500 plus $8,000), and a 61-year-old up to $35,750 ($24,500 plus $11,250). An IRA owner over 50 could contribute $8,600 ($7,500 plus $1,100).

Starting in 2026, if your prior-year FICA wages from the employer sponsoring the plan were over $150,000, your 401(k) catch-up contributions generally must be made as Roth contributions. If you are self-employed, see our comparison of Solo 401(k) vs SEP IRA for 2026.

When do required minimum distributions start?

The IRS says you generally must start taking withdrawals from an IRA or retirement plan when you reach age 73, or age 75 if you were born in 1960 or later. For an IRA, the first one is due by April 1 of the year following the year you reach 73, or the year you reach 75 if you were born in 1960 or later.

Delaying that first one means two distributions land in the same year, which can push you into a higher bracket. Plan around it before it happens.

What happens if you miss a required minimum distribution?

You can owe an excise tax. The IRS says a 25% excise tax may apply on the amount not distributed as required, or 10% if corrected within two years.

In a made-up example, a $40,000 required distribution that you skip could cost $10,000 at 25%, or $4,000 if you fix it within the correction window.

Plan withdrawals early so a deadline doesn't force the decision.

How do you plan withdrawals to control your tax bracket?

By looking at every income source together: retirement accounts, business income, investments and Social Security. The right mix changes each year, so we model it annually.

Two tools worth knowing are Roth conversions, covered in our Roth conversion ladder post, and gifts to charity straight from an IRA.

Where does this fit in the bigger plan?

Retirement income touches your estate plan and business exit. See our retirement planning page, and our guide to business tax planning strategies if you own the company.

If you'd like to see how this applies to your situation, book your tax strategy call or call 702-852-2577. For how we approach the bigger picture, see our advanced tax strategies page.

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About the author: D. Lenny Whiting, Esq., CPA, MS is the Managing Partner of CPA Attorney, LLC in Las Vegas. He is a Nevada attorney and a Nevada CPA. More about Lenny.

This article is general information, not legal or tax advice for your situation. Tax rules change, and results depend on your facts.

CPA Attorney, LLC, 10155 W. Twain Ave., Ste. 100, Las Vegas, NV 89147. Attorney responsible for this content: D. Lenny Whiting.