What Is an IRA?
An IRA, or Individual Retirement Account, is a tax-advantaged account designed to help individuals save for retirement.
Depending on the account type, contributions may offer tax benefits today or allow qualified withdrawals to be tax-free later.
IRAs can generally hold investments such as mutual funds, ETFs, stocks, bonds and CDs, giving investors more flexibility than many employer-sponsored plans.
Why Consider an IRA?
Explore IRA Type
Compare Common IRA Types
| Feature | Traditional IRA | Roth IRA | Rollover IRA |
| Contributions | Pre-tax benefit may apply | After-tax | Transfer of existing retirement funds |
| Tax on Withdrawals | Generally taxable | Qualified withdrawals tax-free | Depends on account type |
| Income Limits | Deduction limits may apply | Contribution limits may apply | Generally no income limit for rollover |
| Required Distributions | Generally yes | Generally no for original owner | Depends on account type |
| Common Use | Current tax benefits | Future tax-free income | Consolidating retirement accounts |
IRA Contribution Limits
IRA contribution limits are set by the IRS and can change from year to year.
Important factors include:
- Annual contribution limit
- Catch-up contributions
- Age
- Income
- Tax filing status
- Workplace retirement plan participation
- IRA type
2026 IRA Contribution Limits
Review the current IRS contribution limits for traditional and Roth IRAs, including the age 50+ catch-up amount.
| 2026 IRA Limit | Amount |
|---|---|
| IRA Contribution Limit | $7,500 |
| Age 50+ Catch-Up Contribution | $1,100 |
| Maximum Contribution Age 50+ | $8,600 |
Data year:
2026
Update frequency:
Annually
Source:
Internal Revenue Service (IRS)
—
View official IRS IRA limits
The annual contribution limit applies to the combined total contributed to all traditional and Roth IRAs. Contributions also cannot exceed taxable compensation for the year.
2026 Roth IRA Income Limits
Roth IRA contribution eligibility depends on your filing status and modified adjusted gross income (MAGI). The table below shows the 2026 IRS phase-out ranges.
| Filing Status | Full Contribution | Phase-Out Range | No Direct Roth Contribution |
|---|---|---|---|
| Single / Head of Household | Below $153,000 | $153,000–$168,000 | $168,000 or more |
| Married Filing Jointly | Below $242,000 | $242,000–$252,000 | $252,000 or more |
| Married Filing Separately* | $0 | $0–$10,000 | $10,000 or more |
Data year:
2026
Income measure:
Modified Adjusted Gross Income (MAGI)
Update frequency:
Annually
Source:
Internal Revenue Service (IRS)
—
View official IRS 2026 limits
*The married-filing-separately range shown applies when you lived with your spouse at any time during the year. Roth IRA contribution eligibility depends on filing status, MAGI and other IRS rules.
2026 Traditional IRA Deduction Phase-Out Limits
If you or your spouse is covered by a retirement plan at work, the tax deduction for traditional IRA contributions may be reduced or eliminated based on modified adjusted gross income (MAGI).
| Filing / Coverage Status | Full Deduction | Phase-Out Range | No Deduction |
|---|---|---|---|
| Single / Head of Household — Covered at Work | Below $81,000 | $81,000–$91,000 | $91,000 or more |
| Married Filing Jointly — Contributor Covered at Work | Below $129,000 | $129,000–$149,000 | $149,000 or more |
| Married Filing Jointly — Contributor Not Covered, Spouse Covered | Below $242,000 | $242,000–$252,000 | $252,000 or more |
| Married Filing Separately — Covered at Work* | $0 | $0–$10,000 | $10,000 or more |
Data year:
2026
Income measure:
Modified Adjusted Gross Income (MAGI)
Update frequency:
Annually
Source:
Internal Revenue Service (IRS)
—
View official IRS 2026 IRA limits
*The married-filing-separately phase-out shown applies when the contributor is covered by a workplace retirement plan. If neither spouse is covered by a workplace retirement plan, these deduction phase-outs generally do not apply.
2026 Saver’s Credit Income Limits
The Saver’s Credit can reduce federal income tax for eligible lower- and moderate-income taxpayers who contribute to an IRA or workplace retirement plan. The credit rate depends on adjusted gross income and filing status.
| Credit Rate | Married Filing Jointly | Head of Household | Single / Married Filing Separately |
|---|---|---|---|
| 50% | $48,500 or less | $36,375 or less | $24,250 or less |
| 20% | $48,501–$52,500 | $36,376–$39,375 | $24,251–$26,250 |
| 10% | $52,501–$80,500 | $39,376–$60,375 | $26,251–$40,250 |
| 0% | More than $80,500 | More than $60,375 | More than $40,250 |
Data year:
2026
Income measure:
Adjusted Gross Income (AGI)
Update frequency:
Annually
Maximum qualifying contribution:
$2,000 per person
Maximum credit:
Up to $1,000 per person
Source:
Internal Revenue Service (IRS)
—
View official IRS Saver’s Credit information
Eligibility depends on income, filing status and other IRS requirements. Eligible contributions may include traditional and Roth IRA contributions and certain workplace retirement plan contributions.
What Can Affect IRA Growth?
Who May Consider an IRA?
Benefits and Things to Consider
IRA vs. Other Retirement Accounts
Common IRA Questions
Related Retirement Option
Ready to Explore IRA Options?
Compare Traditional, Roth and rollover IRA choices to see which account structure may fit your retirement goals.