IMPORTANT NEWS & LINKS

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Important Information: What's New

November 14, 2025

401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500

WASHINGTON - The Internal Revenue Service announced today that the amount individuals can contribute to their 401(k) plans in 2026 has increased to $24,500, up from $23,500 for 2025.

The IRS today also issued technical guidance regarding all cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2026 in Notice 2025-67, posted today on IRS.gov.

Highlights of changes for 2026

The annual contribution limit for employees who participate in 401(k), 403(b), governmental 457 plans, and the federal government's Thrift Savings Plan is increased to $24,500, up from $23,500 for 2025.

The limit on annual contributions to an IRA is increased to $7,500 from $7,000. The IRA catch-up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual cost-of-living adjustment is increased to $1,100, up from $1,000 for 2025.

The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401(k), 403(b), governmental 457 plans, and the federal government's Thrift Savings Plan is increased to $8,000, up from $7,500 for 2025. Therefore, participants in most 401(k), 403(b), governmental 457 plans and the federal government's Thrift Savings Plan who are 50 and older generally can contribute up to $32,500 each year, starting in 2026. Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans. For 2026, this higher catch-up contribution limit remains $11,250 instead of the $8,000 noted above.

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the Saver's Credit all increased for 2026.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or the taxpayer's spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Here are the phase‑out ranges for 2026:

  • For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to between $81,000 and $91,000, up from between $79,000 and $89,000 for 2025.
  • For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $129,000 and $149,000, up from between $126,000 and $146,000 for 2025.
  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to between $242,000 and $252,000, up from between $236,000 and $246,000 for 2025.
  • For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.
Other phase-out ranges and limitations

The notice also provides limitations for 2026 for Roth IRAs, the Saver's Credit and SIMPLE retirement accounts.

  • The income phase-out range for taxpayers making contributions to a Roth IRA is increased to between $153,000 and $168,000 for singles and heads of household, up from between $150,000 and $165,000 for 2025. For married couples filing jointly, the income phase-out range is increased to between $242,000 and $252,000, up from between $236,000 and $246,000 for 2025. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.
  • The income limit for the Saver's Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $80,500 for married couples filing jointly, up from $79,000 for 2025; $60,375 for heads of household, up from $59,250 for 2025; and $40,250 for singles and married individuals filing separately, up from $39,500 for 2025.
  • The amount individuals can generally contribute to their SIMPLE retirement accounts is increased to $17,000, up from $16,500 for 2025. Pursuant to a change made in SECURE 2.0, individuals can contribute a higher amount to certain applicable SIMPLE retirement accounts. For 2026, this higher amount is increased to $18,100, up from $17,600 for 2025.
  • The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most SIMPLE plans is increased to $4,000, up from $3,500 for 2025. Under a change made in SECURE 2.0, a different catch-up limit applies for employees aged 50 and over who participate in certain applicable SIMPLE plans, which remains $3,850. Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in SIMPLE plans, which remains $5,250.
Details on these and other retirement-related cost-of-living adjustments for 2026 are in Notice 2025-67, available on IRS.gov.

November 3, 2025

IRS Operations During the Lapse in Appropriations

WASHINGTON - Tax professionals should be aware of the following during the current lapse in appropriations due to limited IRS operations:

  • Tax refunds. Generally, the IRS will not pay refunds. One key exception exists: the IRS will continue to pay individual refunds for your clients who requested direct deposit on their Forms 1040 if the client electronically filed the tax returns, the returns are error-free, and the returns can be automatically processed. The IRS urges tax professionals to electronically file their clients’ returns with direct deposit to avoid delays.
  • Payments. The IRS will accept and process any payments and remittances received, whether received electronically or by mail.
  • Correspondence. The IRS generally will not be responding to paper correspondence. Tax professionals who mail in correspondence to the IRS during this period should expect a delay for a response after full government operations resume due to a growing correspondence backlog.
  • Telephones. Only limited live IRS telephone customer service assistance will be available; however, most automated toll-free telephone applications will remain operational.
  • Taxpayer appointments. The IRS’s walk-in Taxpayer Assistance Centers (TACs) are closed. Appointments are cancelled until the government reopens. Likewise, appointments related to the Independent Office of Appeals or Taxpayer Advocate Service cases are cancelled. IRS personnel will reschedule those meetings when the government reopens.
  • Transcripts. Tax professionals needing historical filing information can use automated tools to request tax transcripts. In addition, the IRS will process transcript requests related to disaster relief.
  • Income verification. The IRS Income Verification Express Service (IVES) will remain available.
  • Tax-exempt groups. The IRS will not process applications or determinations for tax-exempt status or pension plans.
  • Enforcement activity. Criminal Investigation work continues during this period, as does compliance work related to protecting statutes of limitations.
  • 2026 filing season. The IRS will continue some critical operations during this period to be ready for tax professionals and their clients. These critical operations include testing and preparation of filing season programs and related issues.
Tax professionals and their clients should continue using the tools on IRS.gov, including Tax Pro Account, online account for individuals and Business Tax Account. The following resources can help tax professionals market and set up IRS online accounts:

July 15, 2025

One Big Beautiful Bill Act: Tax deductions for working Americans and seniors

WASHINGTON - Review the new provisions from the One Big Beautiful Bill Act, signed into law on July 4, 2025, as Public Law 119-21, that go into effect for 2025. This includes information on "no tax on tips", "no tax on overtime", "no tax on car loan interest", and deductions for seniors.

Click here for the full article.

July 12, 2025

Ways to tell if the IRS is reaching out or if it’s a scammer

WASHINGTON - Identity thieves can prey on anyone, at any time. Here are some helpful tips for taxpayers to know when it’s really the IRS or not.

Click here for the full article.

July 1, 2025

New Requirements for Reporting New Hires to Indiana

INDIANAPOLIS - Indiana Senate Bill 148 requires employers to file reports of newly hired and rehired employees electronically. Additionally, effective today (July 1), employers will be required to provide the following new data elements on all reports of newly hired or rehired employees: occupational code, pay information, and if medical insurance is available to the employee.

What you need to know

  • A field has been added to the Indiana tax page in the RUN powered by ADP platform to indicate if medical insurance is available to employees. ADP has populated this field for you based on if you have medical deductions setup in RUN.
  • An employee's occupational code and pay information is already captured in RUN.
  • If your company is on ADP's Tax filing service, these data elements are reported to the Indiana Department of Workforce Development for your new hires on your behalf.

What you need to do

To verify the health insurance is accurate:

  • Log into RUN >> click Settings >> Federal, state and local tax profile >> Indiana >> State Unemployment Insurance

Updates should be made accordingly.

July 1, 2025

Occupational Employment and Wage Statistics

WASHINGTON - The U.S. Bureau of Labor & Statistics has released Occupational Employment and Wage Statistics for the State of Indiana via their Query System.

Click here for the full spreadsheet.

June 24, 2025

One-third of IRS auditors terminated or resigned as of March 2025

WASHINGTON - As part of the President's actions to reduce the size of the federal government's workforce, the Office of Personnel Management issued guidance for agencies to follow related to probationary employee terminations and the deferred resignation program (DRP). The DRP allowed federal employees to voluntarily resign with pay through September 30, 2025.

The Treasury Inspector General for Tax Administration (TIGTA) initiated a review to provide an update on the IRS's efforts to reduce its workforce. The report provides a snapshot of IRS business units impacted. TIGTA's report also shares demographics of probationary employees who received termination notices and employees who took the DRP offer (collectively referred to as separations), as of March 2025.

As of March 2025, TIGTA found that more than 11,000 IRS employees (out of 103,000 total IRS workforce) were either approved for the DRP or received termination notices during their probationary employment period. These departures represent 11 percent of the IRS's total workforce and impact certain business units more than others.

Additionally, the separations disproportionately impacted employees in certain positions (e.g., job series). For example, approximately 31 percent of revenue agents separated, while 5 percent of information technology management separated. Revenue agents conduct examinations (audits) by reviewing financial records of individual and businesses to verify what is reported. They can work in several IRS business units examining different types of taxpayers.

To view the details from the TIGTA report, click here.

June 18, 2025

Tax checklist for newlyweds

WASHINGTON - Summertime is common time for wedding bells to ring, and newlyweds can make their tax filing easier by doing a few things now. A taxpayer's marital status as of December 31 determines their tax filing options for the entire year, but that's not all newlyweds need to know.

Click here for the remainder of "Tax checklist for newlyweds"

May 28, 2025

What taxpayers should do if they get mail from the IRS

WASHINGTON - IRS sends notices and letters when it needs to ask a question about a taxpayer's federal tax return, let them know about a change to their account or request a payment. Don't panic if mail comes from the IRS - they're here to help.

In short, when a taxpayer receives mail from the IRS, they should: read the letter carefully, review the information, take any requested action, including making a payment, reply only if instructed to do so, let the IRS know of a disputed notice, and keep the letter or notice for their records.

Click here for the remainder of "What taxpayers should do if they get mail from the IRS"

April 23, 2025

Taxpayers should check their withholding now to prepare for next year

WASHINGTON - Proper tax withholding now is key to avoiding surprises when taxpayers file next year. Making any needed adjustments early means taxpayers won't have to make a big change later in the year to catch up.

The IRS Tax Withholding Estimator is a free online tool that helps workers, independent contractors and retirees determine if they have the right amount of federal income tax withheld from their paychecks. Using it can prevent taxpayers from having an unexpectedly large tax bill or a substantial refund when they file in 2026.

Click here for the remainder of "Taxpayers should check their withholding now to prepare for next year"

November 22, 2024

IRS encourages taxpayers to prepare for 2025 filing season with online tools and key reminders

WASHINGTON - As the nation's tax season approaches, the Internal Revenue Service is reminding people of simple steps they can take now to prepare to file their 2024 federal tax returns.

This reminder is part of the IRS's "Get Ready" campaign to help everyone prepare for the upcoming filing season in early 2025. Click here for more information.

October 22, 2024

Essential resources to rebuild records after a natural disaster

WASHINGTON - It may be important for victims of a disaster to reconstruct their tax and financial records to help prove and document their losses so they can get federal assistance or insurance reimbursement. Here are some tips to help people reconstruct important records they may need as they begin to recover and rebuild.

April 17, 2024

Be ready for next year: IRS Tax Withholding Estimator helps ensure withholdings are correct for 2024

WASHINGTON The IRS encourages taxpayers to use the IRS Tax Withholding Estimator to ensure they’re withholding the correct amount of tax from their pay in 2024.

This digital tool provides workers, self-employed individuals and retirees with wage income a user-friendly resource to effectively adjust the amount of income tax withheld from their wages.

The Tax Withholding Estimator will help taxpayers avoid unwanted results in 2024 if the refund for their 2023 return was too large, too small or if they received a surprise tax amount due.

Click here for more.

January 4, 2024

Get Ready: IRS website has helpful resources for taxpayers

WASHINGTON - The Internal Revenue Service encourages taxpayers to check out IRS.gov for tips, tools and resources to help them get ready to file their 2023 federal income tax return.

This is the third in a series of reminders to help taxpayers get ready for the upcoming filing season. Click here for more.