Retirement accounts differ in one respect that matters more than any other: whether you pay tax on the money going in or on the money coming out. Get that right and the rest is arithmetic.
Here are the 2026 numbers, and the rules that decide what you owe when you start withdrawing.
What you can contribute in 2026
- 401(k), 403(b), governmental 457 and the federal Thrift Savings Plan — the basic limit is $24,500.
- Catch-up at 50 and older — an additional $8,000, up from $7,500 in 2025, bringing the total to $32,500.
- Catch-up at ages 60 through 63 — a higher limit of $11,250 applies instead of the $8,000.
- IRA — $7,500, with a catch-up of $1,100.
Roth IRA contributions phase out by income. For 2026 the range is $153,000 to $168,000 for single filers and heads of household, and $242,000 to $252,000 for married couples filing jointly.
The 60-through-63 catch-up is the one people miss, because it is a narrow window and it is larger than the ordinary one. If you are in it, it is worth acting on this year rather than discovering it at 64.
Note that the Roth figures describe a range, not a cliff. Below it you can contribute the full amount; above it you cannot contribute directly at all; inside it your allowable contribution is reduced rather than eliminated. People at the top of that band often assume they are excluded when a partial contribution was still available to them.
Tax now or tax later
A traditional account generally gives you a deduction or pre-tax treatment when you contribute, and the withdrawal is taxable later. A Roth account is funded with money you have already paid tax on, and qualified withdrawals come out untaxed.
Which is better depends on a comparison nobody can make with certainty: your rate now against your rate later. What can be said plainly is that the decision is not permanent-looking from the inside — most people end up holding both types, and the useful question is usually which one to fund this year, not which one is right forever.
When withdrawals stop being optional
You generally have to begin taking withdrawals from your IRA, SIMPLE IRA, SEP IRA or retirement plan account when you reach age 73. These are required minimum distributions, and missing one carries its own penalty.
Two exceptions worth knowing: you are not required to take withdrawals from a Roth IRA, or from a designated Roth account in a 401(k) or 403(b), while the account owner is alive.
That difference is doing real work in a long retirement. An account with no required distribution can be left alone while other money is spent first, which is a planning lever rather than a rule to follow.
What Florida taxes, and what it does not
Florida has no personal income tax. Distributions from a traditional 401(k) or IRA, pension income and Social Security are not taxed at the state level here.
They are still federal income. A retiree who moves to Coral Springs from a high-tax state removes a real cost, and removes exactly one of the two layers. The federal treatment of a distribution is identical here to what it was there, and a large withdrawal in a single year can push you into a higher federal bracket and interact with how your Social Security is taxed. The state saving is genuine; it is not a reason to stop planning the timing of withdrawals.
Residency itself is also a question of fact rather than intention — where you actually live, not where you would like to be taxed. If you are splitting the year between two states, that is worth sorting out properly before the first withdrawal, not after.
What this article cannot tell you
Whether to contribute to a traditional or a Roth account, when to convert, and what order to draw accounts down in are decisions that depend on your income, your other assets, your age and your plans. This page describes rules. It does not know your situation and it is not advice.
All figures are for tax year 2026 unless stated otherwise, and reflect IRS guidance current as of July 2026.
Get the withdrawal order right before the first one
The year you start drawing down is the year the planning stops being theoretical. If you are approaching 73, thinking about a Roth conversion, or about to take a large distribution, bring your account statements and last year's return — we will show you what each option costs in federal tax before you commit to one. Start with personal tax preparation, or call +1 (954) 724-1114.