IRAs, or individual retirement accounts, are popular tools for long-term, tax-advantaged retirement saving and investing. The Internal Revenue Service (IRS) annually sets retirement account contribution limits based on inflation.

IRA Overview

Depending on the type of IRA, individuals can invest pre-tax or post-tax income to grow their retirement savings while receiving tax advantages.

Traditional IRAs let you contribute your pre-tax income, with taxes paid on withdrawals during retirement. Roth IRAs allow you to contribute income after taxes and withdraw funds tax-free in retirement.

Types of IRAs

Roth and traditional IRAs are the most commonly used retirement accounts, but other options exist. Small business owners and self-employed individuals can use SIMPLE and SEP IRAs, while others may prefer traditional or Roth IRAs. Depending on your employment situation and retirement goals, some IRAs may suit you better than others.

The types of IRAs include:

• Traditional IRAs: Contributions are typically tax-deductible; taxes are paid on withdrawals in retirement.
• Roth IRAs: Contributions are made with after-tax income; qualified withdrawals are tax-free.
• Simplified Employee Pension (SEP) IRAs: Designed for self-employed individuals and small business owners.
• SIMPLE IRAs: A retirement plan option for small businesses with 100 or fewer employees.
• Non-Deductible IRAs: Traditional IRAs funded with after-tax dollars when you don't qualify for a deduction.
• Spousal IRAs: Allow a non-working spouse to contribute based on the working spouse's earned income.
• Self-Directed IRAs: Offer a broader range of investment options beyond traditional stocks and bonds.

How Do the IRA Contribution and Income Limits Work?

Individuals contributing to a traditional IRA must have earned income. Also, your annual IRA contribution cannot exceed your earned income.

For instance, if your annual taxable income is $5,000, your contribution will be limited to $5,000, not the $7,500 maximum set by the IRS in 2026. There is no income limit for contributions to a traditional IRA.

A non-working spouse may open a spousal IRA if the working spouse earns at least $15,000 ($7,500 per person) to cover the total allowed contribution for 2026.

2026 IRA Contribution Limits

Traditional and Roth IRAs are retirement plans for individuals who:

• Do not enjoy workplace retirement benefits.
• Participate in workplace retirement plans and want to supplement their retirement savings up to a specified limit.

The contribution limit for both traditional and Roth IRAs has been increased from $7,000 in 2025 to $7,500 in 2026. The catch-up contribution for people aged 50 and above has been raised from $1,000 in 2025 to $1,100 in 2026.

This limit applies to the total contributions you make across multiple IRAs. For example, if you have both a traditional and a Roth IRA, you may contribute a combined total of $7,500 to both accounts.

2026 Traditional IRA Income Limits

Contributions to traditional IRAs are usually deductible in the year they are made, but the ability to deduct your contribution depends on your income, tax filing status, and whether you or your spouse is covered by a workplace retirement plan.

If you or your spouse is covered by a workplace retirement plan and you file jointly, your income may limit or phase out your ability to deduct contributions to a traditional IRA. If neither of you is covered by a workplace plan, you can generally deduct your contributions regardless of income.

The 2026 traditional IRA deduction limits (based on Modified Adjusted Gross Income, or MAGI) for those covered by a workplace plan are as follows:

• Head of household, or single individual covered by a retirement plan at work: $81,000 - $91,000
• Married couple filing jointly (IRA contributor covered by a workplace retirement plan): $129,000 - $149,000
• Married couple filing jointly (spouse covered by the workplace retirement plan): $242,000 - $252,000
• Married couple filing separately (either you or your spouse covered by a workplace retirement plan): $0 - $10,000

2026 Roth IRA Income Limits

When you invest after-tax income in a Roth IRA, your money can grow tax-free. You can withdraw it tax-free at retirement, with no required minimum distributions (RMDs).

To contribute to a Roth IRA in 2026, you must meet certain income and filing status requirements based on your Modified Adjusted Gross Income (MAGI). Income limits determine if you are eligible for full or reduced contributions.

For 2026, the income limitations on who qualifies to invest in a Roth IRA are as follows:

• Head of household, single filers, and married filing separately: $153,000 - $168,000
• Married couples filing jointly and qualifying widows: $242,000 - $252,000
• Married couple filing separately (if you lived with your spouse at any time during the year): $0 - $10,000

2026 SIMPLE IRA Contribution Limits

In 2026, the contribution limit for SIMPLE retirement accounts increased to $17,000, up from $16,500 in 2025.

2026 Saver's Credit Income Limits

The saver's credit, or retirement savings contribution credit, provides low- and moderate-income earners with a $1,000 tax credit for contributing to a qualified retirement account.

In 2026, the income limit for getting the saver's credit is as follows:

• Single filers and married couples filing separately: $40,250
• Married couples filing jointly: $80,500
• Head of household: $60,375

IRAs help you build more income for retirement. To make the most of your IRA, try to contribute the maximum allowed each year.