2026 Roth IRA contribution limits
Under 50
$7,500
per year
Age 50+
$8,600
per year (+$1,000 catch-up)
This limit is shared across all your traditional and Roth IRAs combined. Contributions must come from earned income.
Roth IRA income limits & phaseout
Your ability to contribute directly phases out at higher Roth IRA income limits:
| Filing Status | Full Contribution | Reduced | No Contribution |
|---|---|---|---|
| Single / HoH | Below $153,000 | $153,000–$168,000 | Above $168,000 |
| Married (Joint) | Below $242,000 | $242,000–$252,000 | Above $252,000 |
Roth IRA vs. traditional IRA
Roth IRA
- After-tax contributions
- Tax-free withdrawals in retirement
- No RMDs during owner's lifetime
- Best if you expect higher taxes later
Traditional IRA
- May be tax-deductible now
- Taxed as income when withdrawn
- RMDs start at age 73
- Best if you need deduction now
Growth example
Contributing the max $7,500/year from age 30 to 65 at 7% return:
Result: $245,000 contributed + $790,394 growth = $1,035,394 tax-free at retirement
Investment growth accounts for 76% of the balance — all tax-free with a Roth IRA.
Monthly contribution comparison
| Monthly | You Put In | Growth | Total |
|---|---|---|---|
| $250/mo | $90,000 | $213,219 | $303,219 |
| $500/mo | $180,000 | $426,438 | $606,438 |
| $583/mo | $209,880 | $497,227 | $707,107 |
| $750/mo | $270,000 | $639,657 | $909,657 |
30-year projection at 7% annual return. $625/mo = max contribution ($7,500/yr).
Backdoor Roth IRA explained
If your income exceeds the Roth IRA income limits, the backdoor Roth strategy lets you contribute indirectly: make a non-deductible contribution to a traditional IRA, then convert it to a Roth IRA. This is legal and IRS-approved. Caution: the pro-rata rule applies if you have pre-tax IRA balances.
FAQs
What is a Roth IRA?
A Roth IRA is an individual retirement account funded with after-tax dollars. Your contributions don't reduce your current taxable income, but qualified withdrawals in retirement — including all investment gains — are completely tax-free. This makes it ideal if you expect higher taxes in retirement or want tax-free income flexibility.
What are the 2026 Roth IRA contribution limits?
For 2026, you can contribute up to $7,500 per year ($8,600 if you're 50 or older). This limit is shared across all your traditional and Roth IRAs combined — not per account. Contributions must come from earned income and cannot exceed your taxable compensation for the year.
What are the 2026 Roth IRA income limits?
Your ability to contribute phases out at higher incomes. For 2026: Single filers — full contribution below $153,000 MAGI, reduced from $153,000–$168,000, no direct contribution above $168,000. Married filing jointly — full below $242,000, reduced $242,000–$252,000, none above $252,000. The backdoor Roth strategy can bypass these limits.
What is the difference between Roth and traditional IRA?
Traditional IRA: contributions may be tax-deductible now, withdrawals taxed as ordinary income in retirement. Roth IRA: contributions are after-tax (no deduction), but qualified withdrawals are completely tax-free. Choose Roth if you expect higher taxes later; choose traditional if you need the deduction now and expect lower taxes in retirement.
Can I have both a 401(k) and a Roth IRA?
Yes — you can contribute to both in the same year, as they have separate contribution limits. The 2026 limits: 401(k) up to $24,500, Roth IRA up to $7,500. Combined, you could save up to $32,000 per year in tax-advantaged retirement accounts (more with catch-up contributions and employer match).
What is a backdoor Roth IRA?
A backdoor Roth is a strategy for high earners who exceed the income limits for direct Roth contributions. You contribute to a traditional IRA (non-deductible), then convert it to a Roth IRA. The conversion is legal and IRS-approved. Caution: the pro-rata rule applies if you have other pre-tax IRA balances, potentially creating a partial tax bill on conversion.
When can I withdraw from a Roth IRA?
Contributions can be withdrawn anytime, tax-free and penalty-free (you already paid tax on them). Earnings can be withdrawn tax-free after age 59½ AND the account has been open 5+ years. Before 59½, earnings withdrawals face a 10% penalty plus income tax (exceptions: first home purchase up to $10,000, disability, certain education expenses).
Are Roth IRA contributions taxed?
Roth IRA contributions are made with after-tax dollars — you've already paid income tax on the money before contributing. The benefit comes later: qualified withdrawals in retirement, including decades of investment gains, are completely tax-free. There are no Required Minimum Distributions (RMDs) for Roth IRAs during the owner's lifetime.
What investments can a Roth IRA hold?
A Roth IRA can hold almost any investment: stocks, bonds, mutual funds, ETFs, index funds, REITs, CDs, and even some alternative investments. The IRA is the account type; what you invest in within it is up to you. Most financial advisors recommend low-cost index funds for long-term retirement investing due to diversification and low fees.
What happens if I over-contribute to a Roth IRA?
Excess contributions are subject to a 6% penalty tax per year until corrected. To fix it: withdraw the excess amount plus any earnings before the tax filing deadline (including extensions). Alternatively, you can apply excess contributions to the following year's limit. Contact your IRA custodian to process the correction.