Solomon Wealth Monthly: Your June 2026 Guide to Retirement & Medicare Savings

Angelique Solomon
3 days ago
4 min read

Happy June, everyone! Can you believe we’re already halfway through 2026? It feels like just yesterday we were ringing in the New Year, and now summer is officially here. I hope you’re finding some time to enjoy the sunshine and maybe even plan a little getaway.

While you’re out enjoying the warmer weather, there are some pretty big shifts happening in the world of retirement and healthcare that I want to make sure are on your radar. Between new IRS rules for high earners and some historic changes to Medicare prescription drug costs, June is the perfect time to do a quick "financial health check."

In this month’s guide, we’re diving into the 2026 401(k) shake-up, how your Social Security check is changing, and why a $2,000 cap is about to become your new favorite number in Medicare. Grab a cold drink, and let’s jump in!

1. The 401(k) Shake-up: High Earners and "Super" Catch-ups

If you’re still working and padding that 401(k), the rules of the game just shifted. Thanks to the SECURE 2.0 Act, 2026 is the first year we’re seeing some of these major mandates take full effect.

Mandatory Roth Catch-ups for High Earners

If you earned more than $145,000 last year (which is indexed to roughly $150,000 for 2026), the IRS has a new rule for your catch-up contributions. You can no longer put those extra "catch-up" dollars into your traditional, pre-tax 401(k). Instead, they must go into a Roth (after-tax) account.

Now, I know what you’re thinking: "Angelique, I liked my tax deduction!" I hear you. Losing that immediate tax break stings a little, but the silver lining is huge. Those dollars will now grow tax-free and come out tax-free in retirement. It’s all about building that "tax-free bucket" that everyone is talking about lately. You can read more about the specifics in our deep dive on 2026 Roth Catch-up Rules.

The Ages 60-63 "Super Catch-up"

For my friends in that sweet spot between ages 60 and 63, there’s some even better news. You now have access to a "super catch-up." For 2026, the limit for this age group has jumped to approximately $11,250. This is on top of your standard $23,500 or $24,000 deferral limit. It’s a massive opportunity to supercharge your savings right before you cross the finish line into retirement.

A professional illustration of a 401(k) rollover process. A person's hand holding a digital phone screen showing a secure transfer from an old 401(k) briefcase to a new IRA vault.

Why June is the Month of the Rollover

If you’ve recently left a job or are thinking about retiring this year, don’t leave your old 401(k) sitting in your former employer’s hands. Rolling that money into an IRA or an annuity is one of the smartest moves you can make. Why?

Freedom from Paperwork: No more dealing with HR departments from a company you don’t work for anymore.
Consolidated Tracking: It’s much easier to see your progress when everything is in one place.
Better Investment Choices: Most employer plans are limited. An IRA gives you the world.

We specialize in Smart 401(k) Rollover Guidance to help you keep that money growing tax-deferred while ensuring you have a plan for lifetime income.

2. Medicare & Social Security Updates for June 2026

Medicare is going through some of the biggest changes we’ve seen in decades. If you are turning 65 or already on Medicare, June is a great time to review your plan because the 2026 landscape is looking very different.

The $2,000 Out-of-Pocket Cap (The Big Win!)

Starting this year, there is a $2,000 cap on out-of-pocket costs for prescription drugs covered by Part D. This is a game-changer! In years past, some of my clients were spending $5,000 or even $10,000 a year on specialized medications. Now, once you hit that $2,000 mark, your plan picks up the rest for the year.

Negotiated Drug Prices

We are also seeing the full impact of the first ten major drugs that Medicare has negotiated lower prices for. These include common medications for heart failure, diabetes, and blood clots. If you take any of these, you might notice your costs dropping significantly.

Part B Premiums and the SS COLA

The standard Medicare Part B premium for 2026 is projected to be around $202.90. While that’s a slight increase from last year, the Social Security Cost-of-Living Adjustment (COLA) of 2.8% is designed to help. For the average retiree, this means about a $56 per month bump in their Social Security check. Even after the Part B premium is deducted, most folks will still see a little extra in their pocket each month.

A conceptual image representing Medicare and healthcare savings. A modern prescription bottle next to a calendar marked '2026' with a shield symbol and a $2,000 Cap label.

Are you confused about whether to stick with a Medicare Supplement or look at a Medicare Advantage plan given these new 2026 rules? You aren’t alone. Check out our latest comparison on Medicare Supplement vs. Advantage for 2026 to see which one fits your budget better this year.

3. Life Insurance: Protecting What Matters Most

I can’t write a June update without a quick reminder about life insurance. June is often a time of family reunions and weddings. When we get together with the people we love, it’s a natural time to think about their future security.

Life insurance isn't just about a death benefit; it's about asset protection. Whether it's ensuring your spouse can stay in your home or leaving a legacy for your grandkids, having the right policy in place is the ultimate "peace of mind" asset. Plus, some modern policies even offer "living benefits" that you can access if you ever need long-term care.

Let’s Chat!

I know this is a lot of information to digest while you’re trying to enjoy your summer. But that’s what I’m here for! My job is to take the "scary" out of these numbers and help you build a plan that actually makes sense for your life.

Whether you need help navigating a 401(k) rollover, choosing the right Medicare plan for 2026, or just want to make sure your family is protected with life insurance, I’d love to talk.

Angelique in a stylish green jacket talking to a couple in a bright, modern office about retirement planning.

You can book a Retirement Planning Session or a Medicare Consultation directly on our website. Or, just give me a call at (334) 459-8264.

Let’s make sure your 2026 is your best financial year yet. Stay cool out there!

Warmly,

Angelique Solomon Solomon Estate and Wealth Planning

NPN: 20332097 States: AL, FL, GA, SC, VA, TX, OHIO Designations: L&H Phone: (334) 459-8264 Website:https://www.angeliquebenefits.com/