Whether you are opening your first IRA or have had one for decades, the rules change often enough that a refresher is worthwhile. Here are the key facts for the 2026 tax year.
How much you can contribute
For 2026, you can contribute up to $7,500 to IRAs. If you are 50 or older, you can add a $1,100 catch-up contribution, for a total of $8,600. This is a combined limit across all of your traditional and Roth IRAs, not a limit per account. You have until the tax filing deadline in April 2027 to make a contribution for 2026.
Who can contribute
You need earned income, such as wages, salary, or net self-employment income, at least equal to your contribution. If you are married and file jointly, only one spouse needs earned income; a spousal IRA lets the other spouse contribute as well.
There is no longer an age limit. You can keep contributing to a traditional or Roth IRA at any age as long as you have earned income.
Roth IRA income limits
Your ability to contribute directly to a Roth IRA phases out as your modified adjusted gross income rises:
- Single or head of household: phases out between $153,000 and $168,000.
- Married filing jointly: phases out between $242,000 and $252,000.
- Married filing separately: phases out between $0 and $10,000.
Roth contributions are never tax-deductible. Even if your income is above these limits, you may still be able to convert traditional IRA money to a Roth. See Converting a Traditional IRA to a Roth IRA.
Can you deduct a traditional IRA contribution?
If neither you nor your spouse is covered by a retirement plan at work, your traditional IRA contribution is fully deductible. If one of you is covered, the deduction phases out at these income levels for 2026:
- Single, covered by a workplace plan: $81,000 to $91,000.
- Married filing jointly, and the spouse making the contribution is covered: $129,000 to $149,000.
- Married filing jointly, the contributing spouse is not covered but the other spouse is: $242,000 to $252,000.
- Married filing separately, covered: $0 to $10,000.
Above the top of the range you can still contribute, but the contribution is not deductible. Keep good records of nondeductible contributions so they are not taxed again when you withdraw them.
Taking money out
Withdrawals from a traditional IRA are taxed as ordinary income, except for any nondeductible contributions, which come back tax-free. Withdrawals before age 59½ may also be subject to a 10% additional tax unless an exception applies.
Qualified withdrawals from a Roth IRA are tax-free. To qualify, you generally need to be at least 59½ and have had a Roth IRA open for at least five years.
Required minimum distributions
You must start taking required minimum distributions from traditional IRAs at age 73, or 75 if you were born in 1960 or later. Your first RMD can be delayed until April 1 of the year after you reach that age; after that, the deadline is December 31 each year.
If you don’t take the full amount, the penalty is 25% of the shortfall, reduced to 10% if you correct it promptly. Roth IRAs have no required distributions during the owner’s lifetime, which makes them a useful estate planning tool.
Inherited IRAs
If you inherit an IRA from someone other than your spouse, you generally must empty the account within 10 years of the owner’s death, and in some cases take annual distributions along the way. Spouses and certain other eligible beneficiaries have more flexibility. If the IRA holds an annuity, see What To Do If You Inherit An Annuity.
IRA rules have changed many times in the last decade, and the limits are adjusted most years. Check with your financial advisor or tax professional before making contributions or withdrawals so you are working from current rules.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
