For Your Wealth
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Flexible Spending Accounts (FSAs) | Time Is Running Out!
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Be sure to use your FSA funds before the end of the year, as Healthcare, Combination, and Dependent Care FSA balances do not carry forward into 2026. To make the most of your benefits, spend your remaining funds now, and keep all your receipts—since the IRS requires documentation for any FSA reimbursements.
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401(k) | 2026 Annual Limits
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The IRS has set new 401(k) contribution limits for 2026, giving you more ways to increase your retirement savings. You can make both pre-tax and Roth contributions throughout the year, and there is no cap on after-tax contributions. Also, Pearson’s contributions are not included in your annual limits.
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2026 Annual Limits:
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- Contribution Limit: $24,500
- Compensation Limit: $360,000
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Catch-Up Contributions:
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- If you turn 50 at any point in 2026, you’re eligible to contribute an extra $8,000
- If you turn 60 to 63 any time during 2026, you can save an additional $11,250
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Although catch-up contributions don’t count for the employer match, they offer a great opportunity to build up your savings.
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401(k) | New Features for 2026
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The SECURE Act 2.0 introduced several changes to retirement savings plans. Two of the changes which will be available within the Pearson 401(k) plan as of January 1, 2026, include:
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- The treatment of catch-up contributions for certain high-income earners participating in employer-sponsored retirement plans, such as the 401(k)
- A provision that offers a vital financial resource for individuals escaping abusive relationships, allowing penalty-free access to retirement savings with the option to restore those funds within three years
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Look out for more information from Empower in the new year. You can read a small summary about each provision on page 9 of this year’s Open Enrollment brochure.
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Annual Compensation Review | Verify Your Data
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As we commence the 2026 Annual Compensation Review, please follow these steps to validate your data:
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- Access personal information via the hub > Apps and Tools > Fusion HR > Personal Info > Personal Details/Family and Emergency Contacts/Contact Info
- Access compensation information via the hub > Apps and Tools > Fusion HR > About Me > Compensation Data Validation. Note: If the “Compensation Data Validation” tile is not visible in your default view, you will need to add it by clicking the “plus” (+) under “About Me” and checking the box
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