Traditional & Roth IRA Contributions

A traditional IRA contribution may provide a current tax deduction if you qualify; withdrawals are generally taxable except for amounts representing after-tax basis. Roth contributions are not deductible, but qualified withdrawals are tax-free. The right comparison includes current taxes, future withdrawals, and eligibility. Opening an account alone does not establish that a contribution or deduction is allowed.

For tax year 2026, the regular combined traditional and Roth IRA contribution limit is $7,500, or $8,600 if you are age 50 or older by year-end. Your eligible compensation can impose a lower limit, and Roth income limits may reduce what you can contribute directly. These are annual, per-person limits shared across accounts. Check the applicable year before funding.

Eligible compensation generally includes wages and net earnings from self-employment, with special rules for certain other payments. Investment income, pensions, and Social Security benefits generally do not qualify by themselves. There is no upper age limit for regular IRA contributions when the requirements are met. Review the income type and amount before contributing, especially after retirement.

Possibly. A married couple filing jointly may use the spousal IRA rules when their combined eligible compensation supports the contributions. Each spouse contributes to a separately owned IRA, and each has an individual annual limit. Roth income restrictions and traditional IRA deduction rules still apply. A spousal IRA is not a joint account.

Workplace plan coverage does not automatically prevent an IRA contribution, but it can limit the deduction. Your income, filing status, and whether you or your spouse is covered determine the applicable deduction rules. If neither spouse is covered by a workplace plan, the income-based deduction phaseouts generally do not apply. Contribution eligibility and deductibility are separate questions.

Direct Roth IRA contributions can be reduced or eliminated based on modified adjusted gross income and filing status. The ranges change by tax year, and married-filing-separately rules can be restrictive. Review your expected full-year income before funding, then recheck if bonuses, gains, or other income changes the result. A Roth conversion follows different eligibility rules.

For 2026: Single filers and heads of household can make a full contribution, subject to the usual contribution and compensation limits, with modified adjusted gross income below $153,000. The allowed contribution is reduced from $153,000 to below $168,000, and no direct Roth IRA contribution is allowed at $168,000 or more.

For married couples filing jointly, the full-contribution income threshold is below $242,000. The allowed contribution is reduced from $242,000 to below $252,000, and no direct contribution is allowed at $252,000 or more. These are modified adjusted gross income limits, not simply salary limits. Use the IRS 2026 income phaseouts link below for the applicable rules.

Regular IRA contributions generally can be made through the tax return’s original filing deadline for that year, excluding filing extensions. For most taxpayers, that deadline is April 15 of the following year; weekends, holidays, or special relief can change the date. When contributing between January and that deadline, clearly tell the custodian which tax year the payment is for. Special relief can affect deadlines. A regular contribution deadline is different from the timing rules for a Roth conversion.

Yes, if you meet the requirements for each. You can divide regular contributions between the two types, but their combined total cannot exceed your applicable annual limit and eligible compensation. Multiple custodians do not give you additional contribution room. Track all accounts together, and review the traditional deduction and Roth income tests separately.

You may still be eligible to contribute to a traditional IRA even if you cannot deduct the contribution on your tax return. Form 8606 generally reports nondeductible traditional IRA contributions and tracks after-tax basis. Keeping that record helps avoid taxing the same contribution again when you withdraw or convert funds. Earnings and pre-tax amounts can still be taxable, and IRA aggregation rules can affect the calculation.

Address the excess promptly with your preparer and custodian. A timely corrective distribution generally includes the excess contribution and its attributable earnings or losses; simply taking an ordinary withdrawal may not complete the correction. Other approaches may be available depending on the facts. An annual excise tax can apply while an excess remains uncorrected, so review the contribution year and correction deadline.

A qualifying recharacterization can treat a regular contribution as made to the other IRA type. It generally requires a trustee-to-trustee transfer of the contribution plus attributable earnings or losses by the applicable deadline, including extensions. Eligibility and reporting still matter. This is different from reversing a Roth conversion, which is not permitted for conversions made in 2018 or later.

Keep the contribution date, amount, designated tax year, and IRA type for every account. Share custodian confirmations, Form 5498 when available, prior Forms 8606, and records of corrections or recharacterizations. Also provide information about compensation and workplace plan coverage. Form 5498 may arrive after filing season, so retain the underlying confirmation rather than relying only on that form.