New Cost-of-Living-Adjustments for 2026

With the holiday season behind us, many are focused on making positive changes as the new year begins. The 2026 Cost-of-Living adjustments offer several opportunities to bolster your financial security.

The annual cost-of-living adjustments (COLA) are intended to help offset the impact of inflation each year so that Americans in retirement can keep pace with daily expenses. Ensure you’re prepared for the new year and take note of the adjustments summarized below as COLA changes can impact your retirement income, estate and gifting limits, retirement plans, and healthcare contributions.

Social Security

While some have voiced concerns about this year’s Social Security COLA, the adjustment closely reflects real inflation, and even slightly exceeds it. Though it’s not a windfall, the adjustment will provide some welcome breathing room for retirees who depend on their social security benefits. Workers are also seeing an increase in the Taxable Earning Threshold, which means that higher income workers will be making more tax payments to the Social Security Administration.

Employer Retirement Plans

If you plan to maximize contributions to your 401(k), 403(b) or other employer-based retirement plans, be sure to bump up your per-pay-period contributions. For those age 50+ who are looking to make catch up contributions this year, new legislation requires workers making $145,000 or more to make those catch up contributions on a Roth basis*. This shift will subject you to a larger tax liability in what are typically peak earning years. If you think you may be approaching the income threshold, consider reaching out to your CPA or financial advisor to discuss timing strategies.

* Your standard contributions are not required to be Roth.
** Catch up limits apply to most 401(k), 403(b), Gov. 457(b), and TSP plans.
*** Applies to most SIMPLE plans.

Individual Retirement Plans

Take notice of the 2025 limits as well. If you are eligible and have not yet made an IRA contribution for 2025, you may do so until April 15, 2026.

Healthcare

If you are not familiar with the benefits a Health Savings Account (HSA) provides, they are worth looking into. HSAs offer a triple taxed advantage, allowing eligible* participants to contribute pre-tax dollars that grow tax free, and can be withdrawn tax free for qualifying expenses including Medicare premiums for Part A, B, C, and D.

* For 2026, your annual health plan deductible must not be less than $1,700 for self coverage or $3,400 for family coverage.
** Per eligible spouse.

Estates and Gifting

For those who are planning to make gifts this year, the Annual Gift Exclusion remains unchanged for 2026, so ensure you are mindful of that amount. Though it is incredibly uncommon to owe gift taxes during your lifetime, gifts that exceed the annual exclusion will begin reducing your Lifetime Gift Exemption*, and potentially exposing you to estate taxes.

*The Lifetime Gift Exemption is the same as the Estate Tax Exemption.

For additional information on the changes mentioned above, be sure to check out these additional resources:

Social Security
Retirement Plans
HSA Limits
Gift, Estate, and Other 2026 Updates

The information provided herein is for educational purposes only, and should not be construed as advice, including, but not limited to tax, legal, insurance, investment, or retirement advice. For your specific planning needs, please seek the advice of Integris Wealth Management, your tax accountant, attorney, insurance agent, or other professional as appropriate. Investing involves the risk of loss.