For 2026, first check your taxable compensation because total traditional- and Roth-IRA contributions cannot exceed $7,500, or $8,600 if you are 50 or older. Then check modified adjusted gross income, filing status, and workplace-plan coverage to determine whether you can deduct a traditional contribution or contribute directly to a Roth IRA. Modified adjusted gross income, or modified AGI, is the income figure used for these IRA tests. Workplace coverage does not block IRA contributions, but it can restrict a traditional-IRA deduction; income can restrict Roth contributions.
Table of Contents
- How much can you contribute?
- When does workplace coverage affect the deduction?
- Roth IRA eligibility uses a different test
- What should you verify before contributing?
How much can you contribute?
The 2026 limit applies to traditional and Roth iras combined, not separately. The IRS sets the maximum at $7,500, rising to $8,600 for people age 50 or older, according to its IRA contribution limits guidance. Taxable compensation creates a second cap.
If your taxable compensation is below the annual dollar limit, you cannot contribute more than that lower amount. For example, a person under 50 cannot put $7,500 into a traditional IRA and another $7,500 into a Roth IRA. A combined contribution of $7,500 is the maximum, assuming taxable compensation is at least that amount.
When does workplace coverage affect the deduction?
Being covered by a workplace retirement plan does not prevent you from contributing to an IRA. It matters when determining how much of a traditional-IRA contribution you may deduct.
For 2026, the traditional-IRA deduction phases out over these modified-AGI ranges: Within the applicable range, the deduction is reduced. At or above the range's upper limit, no deduction is available under that test. The IRS lists these thresholds in its 2026 retirement-plan limits announcement.
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- Single or head of household, when covered at work: $81,000 to $91,000.
- Married filing jointly, when the contributing spouse is covered: $129,000 to $149,000.
- Married filing jointly, when the contributor is not covered but the other spouse is: $242,000 to $252,000.
- Married filing separately, when covered at work: $0 to $10,000.
Roth IRA eligibility uses a different test
Workplace-plan coverage does not determine Roth-IRA eligibility. Filing status and modified AGI determine whether the permitted contribution is full, reduced, or unavailable. For 2026, Roth contributions phase out at modified AGI from $153,000 to $168,000 for single and head-of-household filers.
The range is $242,000 to $252,000 for joint filers and $0 to $10,000 for married people filing separately, according to the IRS 2026 contribution guidance. This distinction matters for someone with a workplace plan: coverage may reduce a traditional-IRA deduction while having no role in the Roth test. The person must still satisfy the Roth income limits and the combined annual contribution cap.
What should you verify before contributing?
Use your expected 2026 tax information to make four checks: To confirm coverage, check the "Retirement plan" box on Form W-2 or ask the employer. Social Security or Railroad Retirement coverage alone does not count as employer-plan coverage for this purpose, as explained in IRS Publication 590-A.
Recheck the figures if income or contribution plans change. An excess IRA contribution generally faces a 6% tax for every year it remains in the account.
- Confirm your taxable compensation.
- Add planned traditional- and Roth-IRA contributions together.
- Identify your filing status and estimate modified AGI.
- Determine whether you or your spouse is covered by a workplace retirement plan.
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