Traditional IRA
| Contribution Limit | $7,500 |
| Catch-Up Contribution | $1,100 for participants age 50 and older |
| Combined Limit | The Traditional and Roth IRA limits are shared. Total contributions across both account types cannot exceed $7,500, or $8,600 with catch-up |
| Eligibility | You must have earned income to contribute. There is no income limit on the ability to contribute, but deductibility may be reduced based on income and workplace plan participation |
| Spousal Eligibility | A non-working spouse may contribute based on the working spouse's earned income, subject to the same limits |
| Deduction Phase-Out | If you or your spouse are covered by a workplace retirement plan, the ability to deduct contributions phases out based on income and filing status. See phase-out table below |
| Deadline to Contribute | April 15 of the year following the tax year. No extensions |
| Tax Treatment | Contributions are generally deductible. Earnings grow tax-deferred and are taxed as ordinary income on distribution |
2026 Traditional IRA deduction phase-out ranges
| Filing Status | Workplace Plan Coverage | Full Deduction | Partial Deduction | No Deduction |
|---|---|---|---|---|
| Single / Head of Household | You are covered | $81,000 or less | $81,001 to $90,999 | $91,000 or more |
| Married Filing Jointly | You are covered | $129,000 or less | $129,001 to $148,999 | $149,000 or more |
| Married Filing Jointly | Spouse is covered; you are not | $242,000 or less | $242,001 to $251,999 | $252,000 or more |
| Married Filing Separately | You or spouse is covered | None | $0 to $9,999 | $10,000 or more |
| Any | Neither spouse is covered | Full deduction regardless of income |
Roth IRA
| Contribution Limit | $7,500, shared with the Traditional IRA |
| Catch-Up Contribution | $1,100 for participants age 50 and older |
| Eligibility | Contributions are phased out above certain income levels. See eligibility table below |
| Deadline to Contribute | April 15 of the year following the tax year. No extensions |
| Tax Treatment | Contributions are made with after-tax dollars. Earnings grow tax-free and qualified distributions are tax-free |
2026 Roth IRA contribution eligibility (MAGI)
| Filing Status | Full Contribution | Partial Phase-Out | No Contribution |
|---|---|---|---|
| Single / Head of Household | $153,000 or less | $153,001 to $167,999 | $168,000 or more |
| Married Filing Jointly | $242,000 or less | $242,001 to $251,999 | $252,000 or more |
| Married Filing Separately | None | $0 to $9,999 | $10,000 or more |
SEP IRA
| Who Contributes | The employer only. Participants cannot make salary deferrals to a SEP IRA. A self-employed owner contributes in the employer role, not as an employee |
| Contribution Limit | Lesser of 25% of compensation or $72,000. For an employee, compensation means W-2 wages. For a self-employed owner, the percentage is applied to net self-employment income after the self-employment tax deduction, which works out to approximately 20% |
| Compensation Cap | $360,000. Compensation above this amount is not counted in the calculation |
| Catch-Up Contribution | None |
| Employee Eligibility | Set by the employer, but no more restrictive than age 21, work in three of the past five years, and at least $800 in compensation for the year. An employer may use looser criteria to include more employees |
| Uniform Contribution Rule | The employer must contribute the same percentage of compensation for every eligible employee, including the owner. An owner cannot contribute for themselves at a higher rate than for staff |
| Vesting | Immediate. Contributions belong to the participant as soon as they are made |
| Deadline to Contribute | Business tax filing deadline, including extensions. For calendar-year filers that is October 15 for a sole proprietor filing Form 1040 or a C corporation filing Form 1120, and September 15 for a partnership filing Form 1065 or an S corporation filing Form 1120-S |
| Tax Treatment | Contributions are deductible by the business and are not included in the participant's taxable wages. Earnings grow tax-deferred and are taxed as ordinary income on distribution |
SIMPLE IRA
| Contribution Limit | $17,000 |
| Catch-Up Contribution | $4,000 for participants age 50 and older |
| Eligibility | Employee must meet plan participation criteria set by the employer. Employer contributions are mandatory |
| Deadline to Contribute | Employee deferrals are withheld through payroll during the plan year and must be deposited promptly, generally within 30 days after the end of the month in which they were withheld. Employer contributions follow the business tax filing deadline including extensions, which for calendar-year filers is October 15 for a sole proprietor filing Form 1040 or a C corporation filing Form 1120, and September 15 for a partnership filing Form 1065 or an S corporation filing Form 1120-S |
| Tax Treatment | Employee deferrals reduce taxable wages. Earnings grow tax-deferred and are taxed as ordinary income on distribution |
Contribution rules can be complex, particularly where income phase-outs, employer plan participation, or spousal contributions are involved. Confirm your eligibility and deductibility with a qualified tax advisor before contributing. Overcontributions carry a 6 percent annual excise tax until corrected.
Frequently Asked Questions
Can I contribute the full amount to both a Traditional IRA and a Roth IRA?
No. The two share a single limit. You may split $7,500 between them in any proportion, or $8,600 if you are 50 or older, but the combined total cannot exceed that figure.
My income is above the Roth phase-out. Can I still contribute to a Traditional IRA?
Yes. There is no income limit on contributing to a Traditional IRA, only on deducting the contribution. Whether your contribution is deductible depends on your income, your filing status, and whether you or your spouse are covered by a workplace retirement plan, as shown in the phase-out table above.
Does a SEP or SIMPLE IRA contribution reduce my personal IRA limit?
No. Employer contributions to a SEP or SIMPLE IRA are separate from your personal Traditional and Roth IRA limit. Participating in one can affect whether your Traditional IRA contribution is deductible, which is a different question from how much you may contribute.
Does a rollover or transfer count against my annual contribution limit?
No. Rollovers and transfers move funds that are already inside a retirement account, and there is no dollar limit on how much you can move. The limits on this page apply only to new contributions.