The Internal Revenue Service has announced increased contribution and income limits for Roth Individual Retirement Accounts (IRAs) for the 2026 tax year. These adjustments, driven by inflation, will allow Americans to save more for retirement in these tax-advantaged accounts.
Key Takeaways
- The annual Roth IRA contribution limit will increase to $7,500 in 2026, a $500 increase from 2025.
- The catch-up contribution for individuals aged 50 and over will rise to $1,100.
- Income eligibility thresholds for making Roth IRA contributions have also been raised for most filing statuses.
- These changes reflect cost-of-living adjustments to help retirement savings keep pace with inflation.
Higher Contribution Limits Offer More Savings Potential
The IRS has officially raised the maximum amount individuals can contribute to their Roth and traditional IRAs. For 2026, the new annual limit is set at $7,500, up from the $7,000 limit in place for 2025.
This increase provides savers with an opportunity to set aside an additional $500 in their retirement accounts, leveraging the tax-free growth and withdrawal benefits offered by Roth IRAs.
Increased Catch-Up Contributions for Older Savers
In addition to the standard limit increase, the IRS has also boosted the catch-up contribution for those nearing retirement age. Individuals aged 50 and over will be able to contribute an extra $1,100 in 2026.
This is a $100 increase from the $1,000 catch-up amount in 2025. This brings the total potential contribution for this age group to $8,600 for the year ($7,500 base + $1,100 catch-up).
2026 IRA Contribution Limits at a Glance
- Under Age 50: $7,500
- Age 50 and Over: $8,600 (includes $1,100 catch-up)
Updated Income Thresholds Widen Eligibility
Making contributions to a Roth IRA is dependent on an individual's Modified Adjusted Gross Income (MAGI). The IRS has adjusted these income phase-out ranges for 2026, allowing more taxpayers to qualify for direct contributions.
These ranges determine whether you can contribute the full amount, a partial amount, or are ineligible to contribute directly to a Roth IRA.
Single and Head of Household Filers
For individuals filing as single or head of household, the income phase-out range has been increased. The new range for 2026 is between $153,000 and $168,000.
This is an increase from the 2025 range of $150,000 to $165,000. Filers with a MAGI below $153,000 can make a full contribution. Those with an income above $168,000 cannot contribute directly.
Married Couples Filing Jointly
Married couples who file their taxes jointly will also see higher income limits. The phase-out range for this group will be between $242,000 and $252,000 for 2026.
This is up from the 2025 range of $236,000 to $246,000. Couples with a combined MAGI below $242,000 can make full contributions for each spouse. Direct contributions are not permitted for those with a MAGI exceeding $252,000.
A Note on Married Filing Separately
The income phase-out range for individuals who are married but file separately is not subject to annual cost-of-living adjustments. According to the IRS, this range remains unchanged at $0 to $10,000.
How Phase-Out Ranges Affect Contributions
If your MAGI falls within the phase-out range for your filing status, you are still able to make a contribution, but it will be a reduced amount. The closer your income is to the upper limit of the range, the less you are permitted to contribute.
Taxpayers whose income exceeds the upper threshold are completely phased out and cannot make direct contributions to a Roth IRA for that tax year.
These annual adjustments are crucial for ensuring that the value of retirement savings plans is not eroded over time by inflation, allowing individuals to maintain their purchasing power in their later years.
Strategies for High Earners
Even for those whose income exceeds the new 2026 limits, options may still exist to utilize Roth accounts. A strategy known as the "backdoor" Roth conversion allows high earners to contribute to a traditional IRA and then convert those funds to a Roth IRA.
This process bypasses the income limitations for direct Roth contributions. However, it's important to note that not all 401(k) or IRA plans accommodate this, and there can be tax implications, particularly if you have existing pre-tax IRA balances. It is often recommended to consult a financial professional before pursuing this strategy.
