IRA Contribution Limits 2026: Traditional & Roth Rules

2026 IRA Contribution Limits at a Glance

The $7,000 limit ($8,000 with catch-up) is the combined limit across ALL your Traditional and Roth IRAs. You cannot contribute $7,000 to a Traditional IRA and another $7,000 to a Roth IRA. The total across all IRA accounts must not exceed $7,000 ($8,000 if 50+). Use our Income Tax Calculator to see how IRA contributions affect your tax liability.

Traditional IRA Deduction Rules

Anyone with earned income can contribute to a Traditional IRA regardless of income level. However, whether the contribution is tax-deductible depends on two factors: whether you (or your spouse) are covered by an employer retirement plan and your modified adjusted gross income (MAGI).

If you are NOT covered by an employer plan: Your Traditional IRA contribution is fully deductible regardless of income. There are no income limits for the deduction. If your spouse has an employer plan but you do not, your deduction phases out at MAGI of $230,000 to $240,000 (MFJ).

If you ARE covered by an employer plan (single): Full deduction if MAGI is below $79,000. Partial deduction if MAGI is $79,000 to $89,000. No deduction if MAGI exceeds $89,000.

If you ARE covered by an employer plan (MFJ): Full deduction if MAGI is below $126,000. Partial deduction if MAGI is $126,000 to $146,000. No deduction if MAGI exceeds $146,000.

Even if your Traditional IRA contribution is not deductible, you can still contribute. The earnings grow tax-deferred until withdrawal. However, nondeductible contributions require filing Form 8606 to track your cost basis. For high earners, a backdoor Roth IRA may be a better strategy than a nondeductible Traditional IRA.

Roth IRA Income Limits and Phase-Outs

Unlike Traditional IRAs, Roth IRA contributions have strict income limits. If your MAGI exceeds the threshold, you cannot contribute directly (though the backdoor Roth strategy provides a workaround):

If your MAGI falls within the phase-out range, you can calculate your reduced contribution limit using this formula: Reduced limit = $7,000 x [(upper limit - your MAGI) / phase-out range]. The result is rounded up to the nearest $10. For example, if you are single with $153,500 MAGI: $7,000 x [($161,000 - $153,500) / $15,000] = $3,500.

Traditional vs Roth IRA: Which Should You Choose?

The choice between Traditional and Roth IRA depends primarily on your current tax rate versus your expected tax rate in retirement:

• Choose Traditional IRA if: You expect to be in a lower tax bracket in retirement, you need the tax deduction now, you are in a high bracket today, or you want to reduce your current AGI to qualify for other benefits
• Choose Roth IRA if: You expect to be in the same or higher tax bracket in retirement, you want tax-free withdrawals, you want no required minimum distributions (RMDs), or you are early in your career with lower income
• Consider both: Tax diversification by having both pre-tax and Roth accounts gives you flexibility in retirement to manage your tax bracket year by year

Learn more about how these accounts compare in our retirement account tax benefits guide and our Roth conversion strategy guide.

IRA Contribution Deadline

You have until the tax filing deadline (typically April 15 of the following year) to make IRA contributions for the prior year. This means you can contribute to your 2026 IRA until April 15, 2027. This extra time is valuable because you can wait until you know your exact income before deciding how much to contribute and whether to use a Traditional or Roth IRA.

Important: Filing a tax extension does NOT extend the IRA contribution deadline. Even if you file an extension pushing your tax deadline to October, IRA contributions for 2026 must still be made by April 15, 2027.

SEP IRA and SIMPLE IRA Limits for Self-Employed

Self-employed individuals have access to additional IRA types with higher contribution limits:

Note that if you contribute to a SEP IRA or have a SIMPLE IRA, these count as "employer plans" for purposes of the Traditional IRA deduction phase-out. They also count in the pro-rata rule for backdoor Roth conversions. Check your self-employment tax to understand the net income calculation for SEP IRA limits. You can also estimate your take-home pay at Salario to plan contributions alongside your paycheck.

Excess Contribution Penalties

If you contribute more than the allowed limit, the excess amount is subject to a 6% penalty tax each year it remains in the account. You can avoid the penalty by withdrawing the excess contribution (plus any earnings on it) before the tax filing deadline. The earnings on the excess contribution are taxable and may be subject to the 10% early withdrawal penalty if you are under 59 and a half.

Common causes of excess contributions include contributing to a Roth IRA when your income exceeds the limits, contributing more than your earned income (your contribution cannot exceed your earned income for the year), and forgetting to count contributions across multiple IRA accounts toward the single combined limit.

Frequently Asked Questions

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