2025–2026 Retirement Limits & What Actually Changed
- HFF Staff Writer
- 10 hours ago
- 3 min read
An Indiana-Focused Guide to 401(k), IRA, HSA & FSA Updates—and How to Use Them Before Year-End
Every January, the IRS releases new retirement and savings limits. Most people skim the email from HR, shrug, and move on. But here’s the thing—these “small” changes can shape your retirement in a big way.
The people who make the most of these increases aren’t necessarily earning the most. They’re the ones who notice the extra few hundred dollars they can shelter from taxes each year—and they act on it.
A Story About Three Hoosiers
For illustrative purposes only
Mark in Carmel
Mark’s 61 and has been with the same engineering firm for decades. This year, when the 401(k) limit jumped to $23,500, his advisor pointed out something else: because he’s over 60, he can use the SECURE 2.0 “super catch-up” of $11,250. That’s over $34,000 going into his 401(k) in one year—untouched by federal taxes until retirement. For Mark, that’s like adding an extra year of savings without extending his career.
Tanya in Bloomington
Tanya’s 37, raising two kids, and managing a career in healthcare. She and her husband have a high-deductible health plan, which means they qualify for an HSA. For 2025, the family limit is $8,550. Tanya treats her HSA like a “stealth retirement account”—she pays current medical bills out of pocket and lets the HSA grow. By the time she’s 65, she’ll have a tax-free pool for future healthcare needs.
Rick in Fort Wayne
Rick’s 55 and never paid much attention to his IRA. When he learned the $7,000 limit (plus $1,000 catch-up) was holding steady for 2025, he decided to set up automatic monthly contributions. He won’t max out this year—but he’s building the habit now so increasing in 2026 feels easy.
What’s Changing in 2025
401(k), 403(b), 457 & TSP Plans
Limit: $23,500
Catch-up (50+): $7,500
Super catch-up (60–63): $11,250
Traditional & Roth IRA
Limit: $7,000
Catch-up (50+): $1,000
HSA
Individual: $4,300
Family: $8,550
Catch-up (55+): $1,000
Healthcare FSA
Limit: $3,300
Carryover: $660
2026 on the Horizon
The HSA numbers are already in for 2026:
Individual: $4,400
Family: $8,750
401(k) and IRA limits will be finalized in fall 2025, but early projections put the 401(k) around $24,500.
Why This Matters More Than It Looks
On paper, $500 more in a 401(k) might not seem worth adjusting your budget for. But over 20 years, that $500 can grow into $1,600, $2,000, or more—depending on returns. Stack that over multiple accounts, and you’re looking at real retirement flexibility.
When you combine these federal limits with Indiana’s relatively low cost of living, every extra dollar you save now buys you more peace of mind later.
How to Put This in Motion Before Year-End
Check where you are now — See how close you are to the 2025 max in each account.
Use catch-ups if you qualify — They exist for a reason; take advantage.
Don’t forget healthcare accounts — HSAs and FSAs can make a big difference, especially with healthcare costs in retirement.
Plan for 2026 — If possible, build in small automatic increases so you’re ready to hit the higher limits when they arrive.
These limit changes aren’t about memorizing numbers—they’re about knowing how to use the rules to your advantage. If you’re not sure how to adjust your contributions for 2025 or plan ahead for 2026, that’s where we come in.
At Halter Ferguson Financial, we take the numbers, the rules, and your unique situation—and turn them into a plan that works for you. Let’s make these updates more than just an HR email. Let’s make them part of your retirement story.
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