ByKelly Phillips Erb,
Forbes Staff.
Some good news: The longest federal government shutdown in U.S. history ended earlier this week as President Donald Trump signed a funding bill into law that will resume all government functions for the first time in 43 days. The bill will provide funding for all federal agencies through January 30, 2026.
That should mean that government functions, including the IRS, will be back to (as close to) normal as possible. However, you should expect some delays as agencies like the IRS tackle the backlog that accumulated while the lights were off.
Despite the shutdown, the IRS continued to put out guidance. This week, the IRS announced that the amount of tax-favored funds that you can sock away for retirement is increasing. In 2026, the amount most individuals can contribute to their 401(k) plans will tick up $1,000 to $24,500—it was $23,500 for 2025. (Older workers can save more through catch-up contributions.)
