A Traditional IRA is a tax-deferred retirement account that allows you to contribute earned income, with potential tax deductions based on your income and workplace plan coverage. While you may already be familiar with the basics, the 2026 updates, such as increased contribution limits and revised deduction thresholds, may still influence how you manage your retirement contributions, especially if you’re coordinating with other accounts like a 401(k) or Roth IRA.
This guide provides a clear breakdown of Traditional IRA contribution limits, income requirements (including salary/wages), deduction rules, and deadlines.
Traditional IRA contribution limits (2026 Updated)
For tax year 2026, contribution rules have remained steady, but it’s essential to pay close attention to the interplay between contribution caps, wage (earned income) limits, and income thresholds for deductibility. The IRS has set the following limits this year.
Age
Maximum Contribution Limit
Under age 50
$7,500
Age 50 or older
$8,600 (includes $1,000 catch-up)
Your total contributions to all IRAs (Traditional + Roth) cannot exceed these limits.
The limit also cannot exceed your total earned income (wages, salary, self-employment)—if you earned less than the maximum, your contribution is capped at your earnings.
“Wages limits,” “income limits,” and “salary limits” are used interchangeably and refer to these same maximums.
Let us consider an example:
If you are 57 and have $100,000 in wages, your maximum Traditional IRA contribution for 2026 is $8,600. If you only have $6,500 in annual earned income, that $6,500 becomes your cap.
What counts as earned income for IRA contributions (2026)
Qualifies as earned income
Does not qualify as earned income
Wages and salary
Interest or dividends
Tips and commissions
Capital gains from investments
Bonuses
Rental income
Self-employment or freelance income
Pension or annuity payments
Taxable alimony (from pre-2019 divorce or separation agreements)
Social security benefits
Taxable military pay (including certain nontaxable combat pay treated as compensation for IRA purposes)
Child support
Note: To contribute to a Traditional IRA in 2026, you must have income from active work. Passive income, such as portfolio earnings, doesn’t meet this requirement.
Who can contribute to a Traditional IRA in 2026?
You can contribute to a Traditional IRA in 2026 if you have earned income, which includes wages, salaries, commissions, or self-employment income.
There’s no age limit for contributions. Under the SECURE Act, you’re eligible to contribute past age 70½, as long as you’re still earning taxable income.
Whether you’re employed full-time, part-time, or running your own business, you’re eligible to contribute up to the annual limit if your income qualifies as earned.
Deduction rules based on income and retirement plan coverage
You may contribute to a Traditional IRA regardless of income, but whether your contribution is fully, partially, or not deductible depends on three key factors:
Whether you’re covered by a retirement plan at work
Below is a breakdown of 2026 income thresholds that determine deductibility. The 2026 figures will likely be adjusted for inflation, but they are not yet available.
Deduction limits: If you are covered by a retirement plan at work
Filing status
MAGI for full deduction
Partial deduction
No Deduction If MAGI ≥
Single or Head of Household
≤ $81,000
$81,000 – $91,000
≥ $91,000
Married Filing Jointly
≤ $129,000
$129,000 –$149,000
≥ $149,000
Married Filing Separately
N/A
$0 – $10,000
≥ $10,000
Deduction limits – If you are NOT covered but your spouse is
Filing Status
MAGI for Full Deduction
Partial Deduction
No Deduction If MAGI ≥
Married Filing Jointly
≤ $242,000
$242,000 – $252,000
≥ $252,000
Married Filing Separately
N/A
$0 – $10,000
≥ $10,000
Deduction limits – If a retirement plan at work covers neither you nor your spouse
Contributing to a Traditional IRA is one thing, and staying within IRS rules each year is another. From income phase-outs to over-contribution penalties, there’s a lot to keep track of.
If you’re looking for a more straightforward way to manage your IRA contributions, Public.com offers tools designed to help:
Automate contributions with a built-in auto-stop feature that enables you to stay within IRS limits
Trade options within your IRA
Program trades to align with your investing approach
Get SIPC protection for eligible assets in your account
Earn a 1% match on qualified rollovers and transfers, plus 1% on annual contributions
Manage your IRA alongside your other investments: stocks, ETFs, and crypto
Whether you’re contributing the full $7,500 (or $8,600 if you’re 50+), you can open a traditional IRA on Public.com, which may offer a more flexible retirement investing experience.
Conclusion
Staying aware of the 2026 Traditional IRA contribution rules may help you avoid errors, especially if you’ve managed multiple accounts over the years. The total contribution cap applies across all IRAs combined, and only earned income counts toward that limit.
If you’re covered by a workplace retirement plan and your income exceeds certain thresholds, your ability to deduct Traditional IRA contributions may be reduced. Even so, the IRA structure continues to offer the benefit of tax-deferred growth within IRS-defined limits.
Frequently asked questions
What is the maximum amount I can contribute to a Traditional IRA in 2026?
In 2026, you can contribute up to $7,500 if you’re under 50. If you’re 50 or older, you get an $1,100 catch-up, bringing your total limit to $8,600.
Can I contribute to both a Traditional and Roth IRA in the same year?
Yes. You can contribute to both, but the combined total contribution across all IRAs in 2026 cannot exceed $7,500 (or $8,600 if you are 50 or older).
What happens if I go over the IRA contribution limit?
If you contribute over the IRA contribution limit, the IRS charges a 6% penalty on the excess amount each year until you fix it. You can withdraw the extra funds before the tax deadline or roll it into next year’s contributions.
When is the last day to contribute to my Traditional IRA for 2026?
April 15, 2027, is the last day to contribute to 2025 IRAs, which lines up with the standard IRS tax filing deadline.
If that date is moved by a weekend, legal holiday, or special IRS disaster relief, the deadline shifts to the next applicable business day for affected taxpayers.
Is there an age limit to contribute to a Traditional IRA?
No. As long as you have earned income, you can contribute at any age. This change came with the SECURE Act in 2020.
Can I contribute to a Traditional IRA without a job?
Only if your spouse has earned income and you file taxes jointly. In this case, a spousal IRA may allow you to contribute even if you’re not earning an income yourself.
