Higher Caps Aim to Help Savers Boost Retirement Contributions
The IRS has released updated contribution limits and income thresholds for Roth and traditional IRAs for 2026, offering many Americans increased room to save for retirement. The standard IRA contribution limit will rise to $7,500, up from $7,000 in 2025. Catch-up contributions for savers age 50 and older will increase to $1,100, compared with $1,000 for 2025.
These annual caps apply to both traditional and Roth IRA contributions, although eligibility for Roth deposits still depends on income. The updates arrive shortly after President Donald Trump signed a funding bill ending the record 43-day federal government shutdown.
Updated Roth IRA Income Phaseouts for 2026
To make a full Roth IRA contribution, savers must fall below certain modified adjusted gross income levels. The IRS has expanded these thresholds for 2026:
For single filers and heads of household, the phaseout range will rise to between $153,000 and $168,000, up from $150,000 to $165,000 for 2025. Full contributions are allowed below $153,000, while no contributions are permitted once MAGI exceeds $168,000.
For married couples filing jointly, the phaseout range will increase to $242,000 to $252,000, compared with $236,000 to $246,000 in 2025. Full contributions are allowed below $242,000, and no contributions are permitted above $252,000.
The phaseout for married filing separately will remain at $0 to $10,000, as it is not adjusted for inflation.
Planning Opportunities for Higher Earners
Some high-income households may still navigate around contribution limits through strategies such as mega backdoor Roth conversions, which shift after-tax 401(k) contributions into a Roth account. Not all workplace plans allow this method, and conversions may trigger tax implications, so advisors recommend reviewing plan rules and potential costs before proceeding.
The IRS announcement follows a series of inflation adjustments released earlier this fall, including updates to federal tax brackets, capital gains thresholds and provisions affecting households and families. Together, the changes shape a clearer picture of the tax environment savers will face heading into 2026.
