Cardinal 401k And Other Changes for 2026
There are a lot of changes in 2026 that affect Cardinal employees like yourself, and I want to be sure you can make adjustments should you desire to do so. Of course, if you have any questions about the changes below, please feel free to reach out anytime.
For Cardinal’s 401k plan, if you wish to maximize your contributions while spreading them evenly throughout the year, be sure to increase your contributions ASAP. In addition, new to 2026, employees aged 50+ who are covered by a 401(k), and whose W-2 earnings exceed $150,000 must designate their catch-up contributions as Roth contributions.
If you’d like help understanding these changes, their impact on your tax or retirement situation, or setting the right contribution rates, please reach out.
HSA Adjustments and Considerations:
For Cardinal employees enrolled in the high‑deductible health plan, the Health Savings Account (HSA) remains one of the most valuable benefits available. With 2026 limits rising to $4,400 for self‑only and $8,750 for family coverage, this is a good time to review your contribution rate and make sure it aligns with the new maximums. And if you’re age 55 or older, remember you’re eligible for an additional $1,000 catch‑up contribution.
Many employees choose to let their HSA grow rather than spending it each year, since contributions, growth, and qualified withdrawals all receive favorable tax treatment. For those who can pay current medical expenses out of pocket, allowing the HSA to accumulate can create a meaningful long‑term resource for future healthcare needs. If you’re in an HSA‑eligible plan, consider adjusting your 2026 contributions now so you’re taking full advantage of this benefit.
Federal Tax Adjustments:
Finally, income tax rates are unchanged for 2026, though the income thresholds are increasing. In addition, the standard deduction is increasing slightly to $32,200 for couples filing jointly and to $16,100 for single filers.
That's all for now. If anything here raises questions or concerns, please don’t hesitate to reach out!
Take care and, as always, stay the course.
Colburn Wealth Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.