This update is written for clients who want to maximize retirement savings and avoid common IRA/Roth IRA mistakes. It highlights what applies to 2025 contributions (made in 2025 and up to the tax filing deadline) and what is already updated for 2026.
1) 2025 IRA contribution limits (Traditional + Roth)
For tax year 2025, the total you can contribute across all your Traditional and Roth IRAs is:
- $7,000 if you are under age 50
- $8,000 if you are age 50 or older (includes the $1,000 catch‑up contribution)
Reminder: IRA contribution limits are separate from employer plan limits (401(k), 403(b), 457, SIMPLE). Also, your ability to contribute may be limited if you (or your spouse) have earned income issues or if income limits apply to Roth contributions or Traditional IRA deductions.
2) Roth IRA income limits (MAGI) for 2025 and 2026
Roth IRA eligibility is based on Modified Adjusted Gross Income (MAGI). If your income falls in the “phase‑out” range, your allowed Roth contribution is reduced.
2025 Roth IRA phase‑out ranges:
- Single / Head of Household: $150,000 – $165,000
- Married Filing Jointly: $236,000 – $246,000
2026 Roth IRA phase‑out ranges (increased):
- Single / Head of Household: $153,000 – $168,000
- Married Filing Jointly: $242,000 – $252,000
3) Traditional IRA deduction rules (if covered by a workplace plan)
Even if you can contribute to a Traditional IRA, the deduction may be limited if you (or your spouse) are covered by a retirement plan at work.
2026 deduction phase‑out ranges (increased):
- Single covered by a workplace plan: $81,000 – $91,000
- Married Filing Jointly (contributor is covered): $129,000 – $149,000
- Married Filing Jointly (contributor not covered but spouse is): $242,000 – $252,000
If your income is above the phase‑out range, you may still be able to make a non‑deductible Traditional IRA contribution (and track basis on Form 8606).
4) What’s actually new for 2026: higher IRA limits
The IRS increased IRA limits for 2026:
- $7,500 if you are under age 50
- $8,600 if you are age 50 or older (catch‑up increases to $1,100)
