IRA contribution limits and income rules for 2026 and 2027

Two sets of rules decide how much a person can put into an individual retirement arrangement (IRA) and what tax treatment the contribution gets. The first is a dollar limit that applies to everyone. The second is a set of income ranges that can reduce a Roth IRA contribution or a traditional IRA deduction. The figures are adjusted for inflation, so each one below is labeled with the tax year it applies to.

The annual dollar limit

The IRS states that for 2026, total contributions to all of a person's traditional and Roth IRAs cannot be more than $7,500, or $8,600 for someone age 50 or older. The extra $1,100 for those 50 and older is called a catch-up contribution.

For 2027, the IRS has announced that the limit remains $7,500 and the catch-up amount remains $1,100.

A few points about how the limit works:

• It is one combined limit. Money can go to a traditional IRA, a Roth IRA, or both, but the total counts against the same cap.
• Contributions cannot be more than taxable compensation for the year. Someone who earned $4,000 can contribute at most $4,000.
• Rollover contributions do not count toward the limit.
• There is no upper age limit for contributing. The IRS notes that for 2020 and later years, regular contributions to traditional or Roth IRAs can be made at any age.

Workplace plans such as 401(k)s have their own, much higher limits, described in 401(k) contribution limits and catch-up contributions. Participating in a workplace plan does not reduce the IRA dollar limit, though it can affect the deduction, as explained below.

Compensation and the spousal rule

Compensation generally means pay for work: wages, salaries, tips, bonuses, commissions and net self-employment income. Investment income and pension payments do not count.

There is an exception for married couples. According to the IRS, a person who files a joint return may be able to contribute to an IRA even without taxable compensation, as long as their spouse had compensation. Each spouse can contribute up to the limit, provided the combined total is not more than the compensation reported on the joint return.

Income ranges for Roth IRA contributions

The ability to contribute directly to a Roth IRA depends on modified adjusted gross income (modified AGI), a version of income defined in IRS Publication 590-A. Below the range, the full contribution is allowed. Within the range, the allowed amount shrinks. At the top of the range and above, no direct contribution is allowed.

The 2026 ranges come from the IRS announcement IR-2025-111 and the 2027 ranges from IR-2026-136. The married-filing-separately range is not adjusted for inflation. Publication 590-A applies it to people who lived with their spouse at any time during the year.

Income ranges for the traditional IRA deduction

Anyone with compensation can contribute to a traditional IRA. The income rules affect only whether the contribution can be deducted. The IRS summarizes it this way: the deduction is allowed in full if neither the contributor nor their spouse is covered by a retirement plan at work. If either is covered, the deduction phases out across these ranges of modified AGI:

These figures also come from the two IRS announcements linked above. Whether someone is "covered" is usually shown by a checkbox on Form W-2.

A contribution that cannot be deducted can still be made. It is called a nondeductible contribution and is reported on Form 8606 so that the amount is not taxed again when it is withdrawn. Nondeductible contributions are part of the arrangement described in the backdoor Roth IRA.

A hypothetical example of a partial contribution

Suppose a single person has modified AGI of $160,500 in 2026. The Roth range for a single filer in 2026 runs from $153,000 to $168,000, a span of $15,000. This person is $7,500 into the range, or halfway. The allowed Roth contribution is reduced by roughly half. Publication 590-A contains the worksheet that produces the exact figure, including rounding rules. The remainder of the annual limit could still go to a traditional IRA.

Deadlines and excess contributions

Publication 590-A says contributions for a year can be made at any time during the year or by the due date for filing that year's return, not including extensions. For most people that is the mid-April filing deadline of the following year. When contributing between January and the deadline, it helps to tell the IRA provider which year the contribution is for.

Contributing more than the limit, or contributing to a Roth IRA when income is too high, creates an excess contribution. The IRS says excess contributions are taxed at 6% per year for each year the excess remains in the IRA. The tax can generally be avoided by withdrawing the excess and any earnings on it by the due date of the return, including extensions.

For how the two account types compare once money is inside, see Roth vs. traditional IRA.