It’s the most wonderful time of the year…
At long last, the IRS has released its inflation adjustments for tax-advantaged retirement accounts for 2026! Typically, these figures are released in late-October/early-November each year, so the team here at Serving Those Who Serve has been waiting with bated breath for the new numbers, and on Thursday, November 13th, they finally arrived!
As to be expected, several key limits are increasing. For federal employees, this means new opportunities to save more for retirement through the TSP and IRAs. It also means now is the perfect time to revisit your contributions before the new year begins.
Here’s a breakdown of what’s changing and how to prepare.
2026 TSP Contribution Limits
2026 IRA and Roth IRA Contribution Limits
SIMPLE IRA Adjustments
For Feds with outside self-employment income or contractor work, SIMPLE IRA contributions have also been updated:
What These Changes Mean for Federal Employees
The contribution limit increases may not look dramatic at first glance, but for long-term savers-especially federal employees planning for a multi-decade retirement-every additional tax-advantaged dollar matters. Higher limits allow you to capture:
But these benefits only happen if your contributions are actually updated! Which brings us to…
YOUR Action Step: Recalculate Your 2026 TSP Contributions
I can hardly believe it either, but January is just around the corner. Now is the time to revisit your payroll elections and make a plan to increase your contributions to the new limits (or as close as you can feasibly get) before the new year. The cost of leaving your contribution unchanged could include:
For Feds who want to max out their TSP, here are some quick examples:
If you’d like help calculating your exact per-pay-period amount-or determining whether Roth, Traditional, or a mix is right for you, the team at Serving Those Who Serve would be more than happy to walk through it with you. Give us a shout at [email protected] today for a complimentary personalized consultation.
Final Thoughts
The IRS’s 2026 adjustments offer federal employees another opportunity to strengthen their financial foundation. A small increase in your contributions today can translate into meaningful long-term growth over a federal career.
Taking a few minutes now to adjust your TSP and IRA contributions can ensure you’re fully taking advantage of these higher limits-and keeping your retirement plan on track.
If you’d like help reviewing your contribution strategy for 2026, our team at Serving Those Who Serve is here to support you.
**Written by Katelyn Murray, CFP®, ChFEBC®, FBS®, CFT-1™, ECA. The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Katelyn Murray and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
The FedLife Podcast is your in-depth, biweekly deep dive into the world of federal benefits and retirement planning. Hosted by federal benefits expert Ed Zurndorfer and Dan Sipe of Serving Those Who Serve, each 30-minute episode unpacks the complexities of FERS and CSRS retirement, FEHB and Medicare, survivor benefits, tax planning, and more. Designed for federal employees and retirees who want more than just the basics, FedLife goes beyond the headlines to explore the rules, nuances, and strategies that can make a meaningful difference in your retirement. Remember: it’s your Fed life, make it a great one.
The Fed15 Podcast is your weekly 15(ish)-minute briefing on federal benefits and financial planning, built specifically for federal employees and retirees. Hosted by Dan Sipe and Katelyn Murray of Serving Those Who Serve, each episode delivers clear, actionable guidance on topics like FERS and CSRS retirement, TSP strategies, FEHB, survivor benefits, tax planning, and more! Whether you’re five years from retirement or already there, The Fed15 helps you cut through the noise, avoid costly mistakes, and make confident decisions about your federal benefits.
