IRA Contribution Limits

Individual Retirement Accounts (IRAs) — governed by 26 U.S.C. §§ 219 and 408A — allow individuals to save for retirement outside of an employer-sponsored plan, with annual contribution limits of $7,500 for 2026 ($8,600 for those age 50 and older), shared between traditional and Roth IRAs combined. The critical distinction between the two types: Traditional IRA contributions may be tax-deductible (reducing taxable income now), with withdrawals taxed in retirement; Roth IRA contributions are made with after-tax dollars, but growth and qualified withdrawals are completely tax-free. Traditional IRA deductibility phases out if you (or your spouse) have access to a workplace retirement plan: for covered workers, the deduction phases out at $79,000–$89,000 (single) / $126,000–$146,000 (joint) in 2026. Roth IRA eligibility has its own income limits: contributions phase out at $150,000–$165,000 (single) / $236,000–$246,000 (joint). Above those limits, the "backdoor Roth" strategy — contributing to a non-deductible traditional IRA then immediately converting — remains legal under current IRS guidance, though Congress has periodically tried to close it. IRA contributions can be made up to April 15 of the following year (not December 31 of the contribution year) — a key planning opportunity. Non-working spouses can contribute to a Spousal IRA as long as the household has sufficient earned income. SECURE 2.0 (2022) eliminated the age limit on traditional IRA contributions (previously age 70½) and added new catch-up contribution rules.

Current Law (2026)

Individual Retirement Accounts (Traditional and Roth combined) have annual contribution limits set by the IRS.

Parameter	2026 Value

Legal Authority

26 U.S.C. § 219 — Retirement savings
26 U.S.C. § 408 — Individual retirement accounts
IRC Section 408A — Roth IRAs
IRC Section 408(o) — Combined limit across all IRAs

How It Works

The $7,500 limit is a combined cap across all IRAs you own — Traditional and Roth together, at any custodian, in any combination (IRC § 408(o)). You can split the $7,500 however you like (e.g., $4,500 Traditional, $3,000 Roth), but the sum across all accounts cannot exceed the limit. For those 50 and older, the $1,100 catch-up brings the total to $8,600. The base limit is indexed to inflation in $500 increments — moving from $6,500 (2023) to $7,000 (2024) to $7,500 (2026). The catch-up was a flat $1,000 from 2006 until SECURE 2.0 made it inflation-adjustable; the first indexed bump took it to $1,100 for 2026.

To contribute, you must have earned income at least equal to your contribution amount (IRC § 219(f)(1)): wages, salary, self-employment income, or alimony received under pre-2019 divorce agreements. Passive income — investment returns, capital gains, pension distributions, Social Security, and rental income — doesn't satisfy the requirement. One significant exception: the Spousal IRA. A non-working spouse can contribute up to $7,500 to their own IRA as long as the couple files jointly and the working spouse has enough earned income to cover both contributions. This doubles the annual IRA contribution capacity for one-income households to $15,000/year combined, or $17,200 if both spouses are 50 or older.

There is no maximum age for IRA contributions. The pre-SECURE Act rule barring Traditional IRA contributions after age 70½ was repealed in 2019, so working retirees can keep contributing at any age as long as they have earned income. Required minimum distribution withdrawals from an existing IRA don't disqualify new contributions — a 74-year-old who takes RMDs can use separate earned income from part-time work to fund contributions to the same or a different account in the same year (though the RMD amount itself cannot be re-contributed). Exceeding the annual limit — whether by over-contributing directly or by making Roth IRA contributions when income exceeds the eligibility threshold — triggers a 6% excise tax per year (IRC § 4973) on the excess until corrected. Correction requires withdrawing the excess plus net income attributable by the tax filing deadline (April 15) to avoid the penalty for that year.

Traditional vs. Roth Decision

Factor	Traditional IRA	Roth IRA
Tax on contributions	Deductible (if eligible)	Not deductible
Tax on withdrawals	Taxable as ordinary income	Tax-free (if qualified)
RMDs	Required at age 73 (75 starting 2033)	None during owner's lifetime
Income limits	For deductibility (if covered by employer plan)	For contributions
Best when	Current tax rate > future tax rate	Current tax rate < future tax rate

How It Affects You

If you don't have a workplace retirement plan: Traditional IRA contributions are fully deductible regardless of income — $7,500/year ($8,600 if 50+) comes straight off your taxable income. At the 22% bracket, that's $1,650/year in tax savings on the full contribution. If you also have a non-working spouse, they can contribute $7,500 to a Spousal IRA using your earned income, doubling the household's annual IRA contribution to $15,000 (or $17,200 if both are 50+). This is the simplest and most accessible retirement savings option available.

If you have a 401(k) at work: Prioritization matters: contribute at least enough to your 401(k) to get the full employer match first (that's a 100% immediate return), then fund a Roth IRA up to the $7,500 limit if you're within the income limits. The Roth IRA offers more investment flexibility (any broker, any fund) and no RMDs — advantages the workplace 401(k) doesn't provide. If your income exceeds the Roth contribution phase-out (~$165,000 single, ~$246,000 MFJ in 2026), use the backdoor Roth strategy — contribute $7,500 to a non-deductible Traditional IRA and convert it immediately. See Roth IRA Income Limits.

If you're in a high-income year and considering Traditional IRA: Traditional IRA deductibility is not deductible if you have a workplace plan and earn above $89,000 (single) or $146,000 (MFJ, covered spouse) in 2026. Making a non-deductible Traditional IRA contribution in this situation is usually not worth it — you'd be contributing after-tax money, tracking the basis, and eventually paying tax on the gains. The better path for high earners with workplace plans is: maximize the 401(k), then do a backdoor Roth for the $7,500 IRA slot, then use taxable accounts for additional savings.

If you're working past 65 or in retirement: There is no maximum age for IRA contributions since the SECURE Act repealed the old 70½ cutoff. If you have earned income from part-time work or consulting and your total income is moderate, you can keep contributing $8,600/year to an IRA while simultaneously taking RMDs from the same or a different account. If you eventually leave the IRA to a non-spouse beneficiary, the inherited IRA 10-year rule will govern how those funds come out. Note: RMD distributions cannot be re-contributed to an IRA, but other earned income can be used to fund contributions even in the same year.

State Variations

Most states conform to federal IRA treatment. Notable exceptions:

PA: Does not allow a state deduction for Traditional IRA contributions but also does not tax qualified distributions
NJ: Contributions not deductible for state purposes; distributions partially taxable
Some states offer additional state-sponsored IRA programs for workers without employer plans

Implementing Regulations

26 CFR Part 1 — Income tax regulations (§§ 1.219-1, 1.408-1 through 1.408-11 — IRA contribution limits, catch-up contributions, excess contribution penalties, traditional and Roth IRA rules, rollovers)
26 CFR 1.408-2 — Individual Retirement Accounts (trustee/custodian requirements; nonbank trustee approval; permissible IRA investments; prohibited transactions)
26 CFR 1.408-3 — Individual Retirement Annuities (insurance company requirements; flexible premium contracts)
26 CFR 1.408-4 — Treatment of distributions from IRAs (taxation of distributions, basis recovery, premature distribution penalty)

Pending Legislation (119th Congress)

HR6722 — Automatic IRA Act — Creates a national system of employer-facilitated automatic retirement savings with default payroll deductions, provider certification, and small-employer tax credits
HR6324 — Retirement Simplification and Clarity Act — Lets workers 50+ roll employer-funded 401(k) amounts into IRA annuities; mandates plain-language rollover notices with key tax and timing rules
HR3083 — Providing Complete Information to Retirement Investors Act — Requires four-part warnings and return projections before participants use brokerage windows in retirement plans
S 1839 (Sen. Cornyn, R-TX) — GROWTH Act: defer tax on automatically reinvested RIC capital gain dividends until sale, redemption, or death; treat reinvested shares as long-term. Status: Introduced.
Catch-up indexing: Proposals to index the $1,000 catch-up to inflation (currently it's the only retirement contribution limit not indexed).
SECURE 2.0 follow-on: May increase base limits or add new catch-up tiers.

Recent Developments

$7,500 limit for 2026 — first inflation bump since 2024: The IRA contribution limit is indexed to inflation in $500 increments. After jumping from $6,500 (2023) to $7,000 (2024), the limit holds at $7,500 for 2026. The catch-up contribution (age 50+) was a flat $1,000 from 2006 until SECURE 2.0 made it inflation-adjustable; the first indexed increase took it to $1,100 for 2026, bringing the 50+ total to $8,600.
SECURE Act removed the age 70.5 contribution bar: Before the SECURE Act (2019), Traditional IRA contributions were prohibited after age 70½. That restriction was repealed — there is now no maximum age for IRA contributions as long as you have earned income. This benefits working retirees who delayed claiming Social Security and continue to earn wages. It also means that RMDs (starting at age 73) and IRA contributions can overlap, though you cannot use RMD distributions to fund new contributions.
Spousal IRA often overlooked by one-income families: A non-working spouse can contribute up to $7,000 to an IRA using the working spouse's earned income — as long as the couple files jointly and the working spouse has sufficient earned income to cover both contributions. This doubles the household's annual IRA contribution capacity ($15,000 combined, $17,200 if both are 50+). Families where one spouse took a career break for caregiving are a common beneficiary of this rule.
State-mandated IRA programs filling coverage gap: California (CalSavers), Illinois, Oregon, Colorado, and roughly 14 other states now mandate that employers without a 401(k) offer access to a state-administered IRA. These auto-enroll employees at a default contribution rate (typically 3-5%) with the same federal $7,500 limit. Workers enrolled in state programs should coordinate: their state IRA contributions count against the same $7,500 limit if they also contribute to a separate IRA. For those who want higher limits, advocating for a workplace 401(k) (with its $23,500 limit) is worth exploring.