IRS Announces 2026 401K Limits

[tsptalk]

IRS announces 2026 401(k) contribution limits, raises savings cap

The IRS has announced higher 401(k) contribution limits for 2026.

Starting in 2026, employees can defer $24,500 into workplace plans, up from 23,500 in 2025.

Only 14% of participants maxed out 401(k) plans in 2024, according to Vanguard’s 2025 How America Saves report.

https://www.cnbc.com/2025/11/13/401-k-contribution-limits-2026.html

 

[rafachavez]

I;M 73 .So its RMD time. My wife is 67. Do you know if I can rollover my TSP RMD to my wifes IRA for income tax savings?

 

[nasa1974]

I;M 73 .So its RMD time. My wife is 67. Do you know if I can rollover my TSP RMD to my wifes IRA for income tax savings?

The simple answer would be it's your money you can do whatever you want with it. But that would be a question for a financial advisor. Then you can get all the proper questions answered. My question is why your RMD into your wife's account. It then becomes her money. Again, a financial advisor can answer all the questions and offer suggestions.

 

[tsptalk]

Do you know if I can rollover my TSP RMD to my wifes IRA for income tax savings?

Hi rafa! Here's a response from Grok to that question:

No, you cannot rollover your TSP Required Minimum Distribution (RMD) to your wife's IRA. RMDs from the TSP are not considered eligible rollover distributions, so they must be taken as taxable income and cannot be rolled over to any IRA or other eligible retirement plan.

tsp.gov +1
This rule applies regardless of potential tax savings strategies, as the RMD amount is disbursed first (from the traditional balance) before any other eligible portions of a distribution could be rolled over in the same year.

tsp.gov
Additionally, TSP rules do not allow for rollovers to a spouse's IRA under these circumstances—such options are generally limited to death benefits for beneficiaries, not ongoing RMDs for living participants.

tsp.gov +1
If you're exploring ways to manage taxes on RMDs, consider consulting a tax advisor for alternatives like QCDs (Qualified Charitable Distributions) if applicable, but that's separate from rollovers.

https://x.com/i/grok/share/KQRWuRqjoYP6SrPZ6xfXrdP5i

 

[evilanne]

I'm 73 .So its RMD time. My wife is 67. Do you know if I can rollover my TSP RMD to my wife's IRA for income tax savings?

TSP Talk is correct, you cannot roll it over but what you do with the money once you get it is up to you.
You have to have earned income, either W-2 or Self Employment income. Are either you or your wife still working? If not, you cannot contribute to any retirement account. If you have earned income, whether it is deductible or not depends upon your income level. Here is the IRS guidance on IRA contributions for 2024 (threshold are probably slightly higher for 2025): https://www.irs.gov/retirement-plan...-you-are-covered-by-a-retirement-plan-at-work

If you are concerned about taking care of your wife, you can alway invest the money in regular brokerage. Long term capital gains are taxed at lower rates and she would get stepped up value when you die.
The only other way I know of to reduce income & taxes is to give it away. Per AI: "You cannot do a Qualified Charitable Distribution (QCD) directly from the Thrift Savings Plan (TSP); QCDs can only be made from IRAs. To utilize a QCD, you would need to roll over your TSP funds into an IRA first."

 

[JTH]

All great points, I would like to add it is a PIA that you cannot contribute retirement income to an IRA. When I retired early, I had focused on paying off debt and raising hard cash, thus I negated maxing my IRAs. While I don't regret this decision, I do have to acknowledge, I traded the flexibility of quick-cash access, for slower tax burdened gains.

For years I had kicked around the idea of of a Trust running a LLC (Limited Liability Company). This is IMHO the best way to transfer your wealth while not liquidating it.

AI-Input, Why People Do This​

Benefits include:

Asset Protection​

• LLC shields against lawsuits related to the asset
• Trust shields against probate and some creditor issues (stronger if irrevocable)
  

Smooth Inheritance​

• Heirs receive benefits without breaking up the assets
• You can stagger distributions (age-based, conditional, etc.)
  

Privacy​

• Trusts avoid public probate records
• LLC ownership details can stay private (state-dependent)

Control​

• You decide:
  
  
  • Who manages the LLC after you
  • Who benefits
  • Under what conditions