Group 1 - The article discusses various tax-advantaged accounts for saving money, including traditional IRAs, 401(k)s, and Roth accounts, highlighting their benefits such as pre-tax contributions and tax-free withdrawals [1] - Health Savings Accounts (HSAs) are emphasized as a valuable savings tool that combines features of traditional and Roth retirement accounts, allowing for tax-free contributions, gains, and withdrawals for qualifying healthcare expenses [2][7] - For individuals turning 55 in 2026, there is an opportunity to make an additional $1,000 catch-up contribution to their HSA, which can enhance their savings strategy [3] Group 2 - Contribution limits for HSAs in 2026 are set at $4,400 for self-only coverage and $8,750 for family coverage, encouraging higher contributions to shield more income from taxes [4] - The article advises against using HSA funds immediately, suggesting that individuals should allow their HSA to grow over time by paying medical expenses with other funds [5][8] - It highlights the importance of reserving HSA balances for retirement, as healthcare costs may increase with age, making a larger HSA balance beneficial for managing expenses during retirement [9]

Core Insights - Less than half of Americans are on track for retirement, highlighting a significant need for individuals to catch up on their retirement savings [1] Catch-Up Contributions - The IRS has increased the catch-up contribution limit for IRAs to $1,100 for the 2026 tax year, allowing savers over 50 to contribute up to $8,600 when combined with the standard limit of $7,500 [2] - For 401(k) and similar plans, the standard contribution limit for 2026 is $24,500, with an optional catch-up limit of $8,000, totaling a potential $32,500 for eligible savers [3] - Employees aged 60 to 63 may access a "super catch-up" option, adding $11,250 to the standard limit, allowing for a total of $35,750 in contributions for the year [3] Strategies for Those Under 50 - Individuals not eligible for catch-up contributions can still work towards closing the retirement gap by maximizing contributions to tax-advantaged accounts like IRAs and 401(k) plans [4] Maximizing Tax-Advantaged Accounts - Tax-advantaged accounts allow funds to grow faster than in taxable accounts due to the deferral of taxes on earnings, although the growth rate itself is not automatically higher [5] Increasing Income for Retirement Savings - Increasing income and allocating the difference towards retirement savings is suggested as the fastest way to catch up, with recommendations to direct the full amount of any raise to retirement savings for the first year [6]

Change is life’s only constant, the Greek philosopher Heraclitus once observed. More than 2,000 years later, the premise still holds — for topics from the seismic to the mundane, like saving money for retirement. And while change is often unsettling, many of the alterations in rules governing retirement accounts that take effect in 2026 can simplify building up the savings necessary to live the life you want when you stop working full-time. Here’s a look at the new standards and how they might affect your ...

Core Insights - Fall is an optimal time for baby boomers to refine their financial strategies before year-end deadlines, focusing on RMDs and charitable giving to lower taxes and enhance retirement savings [1][2] Group 1: Required Minimum Distributions (RMDs) - Boomers aged 73 or older must adhere to strict RMD deadlines, with penalties for non-compliance; reviewing distribution amounts now allows for corrections and exploration of charitable giving options [3] - Financial advisors recommend aligning withdrawals with tax strategies before year-end, as RMDs can significantly affect annual financial plans [4] Group 2: Retirement Contributions - Working boomers can utilize catch-up contributions to reduce taxable income and enhance retirement savings, with additional contributions of $7,500 for 401(k) and $1,000 for IRA available for those aged 50 and older in 2025 [5] Group 3: Charitable Giving - Charitable contributions made before December 31 can lower taxable income while supporting preferred causes; reviewing taxable accounts in the fall is advisable for strategic gifting [5][6] - Tax-loss harvesting and donating appreciated stock or making QCDs from IRAs are effective strategies to reduce taxable income while contributing to charitable causes [6] Group 4: Medicare Coverage - The Medicare open enrollment period from October 15 to December 7 provides boomers an essential opportunity to review plan changes and avoid unexpected costs in 2026 [6]

Core Points - The IRS has introduced a new rule requiring Americans aged 50 and older earning at least $145,000 to make catch-up contributions to a Roth 401(k) starting in 2026, marking the first mandatory Roth provision in the tax code [1][4] - Catch-up contributions for those aged 50 and older will allow an additional $7,500 annually, raising the total contribution limit to $31,000 in 2025, with further adjustments expected for inflation in 2026 [2][3] - Individuals aged 60 to 63 can contribute an extra $3,750, bringing their total allowable contribution to $34,750 for the year [3] Tax Implications - Roth 401(k) contributions are made after-tax, meaning no upfront tax deduction, but withdrawals are tax-free, prompting older savers to reassess their tax situations [2][5] - The value of tax-free withdrawals from Roth 401(k) accounts increases if future tax rates rise, while a decrease in tax rates could make prior higher taxes less favorable [7] - If tax rates remain unchanged, the choice between traditional and Roth 401(k) contributions may not significantly impact the final amount available for retirement [7]