Understanding 2025–2026 IRA Contribution Limits: What Savers Need to Know

Planning for retirement means making your savings work as hard as possible, and knowing the annual IRA contribution limits is a key part of that strategy.

What’s New for 2026

The IRS has increased the amount you’re allowed to contribute to Individual Retirement Accounts (IRAs) for the 2026 tax year:

• 💰 Under age 50 — You can contribute up to $7,500.
• 🎯 Age 50 and older — You can contribute up to $8,600 (including catch-up contributions).
  These limits are up from $7,000 and $8,000 in 2025, respectively.

You have until the federal tax deadline, typically in April of the following year, to make contributions for the prior tax year.

Key Things to Keep in Mind

• The total annual limit applies across all IRAs you own. That means if you have both a traditional IRA and a Roth IRA, the combined contributions can’t exceed the limit.
• You can’t contribute more than your earned income for the year. If you earn less than the limit, your maximum contribution is capped at your income.
• Traditional and Roth IRA rules differ, traditional IRAs may allow a tax deduction depending on your income and workplace retirement coverage, while Roth IRA eligibility is phased out at higher income levels.

Why It Matters

Rising limits mean more opportunity to boost your retirement savings in a tax-advantaged account. Whether you contribute to a traditional IRA, a Roth IRA, or both, knowing these thresholds helps you maximize your long-term retirement plan.

How Summerlin Benefits Consulting and SBC Wealth Management Can Help

We help clients understand their options and create strategies that work to achieve their goals. Let us help you set up your personal retirement plan or learn how to enhance your existing portfolio. Contact us here or call us at 855-809-2894!