Traditional IRA Contribution Limits
IRA Accounts > Traditional IRA > 2025-2026 Traditional IRA Contribution Limits
2025-2026 Traditional IRA contribution limits.
The contribution limit for a traditional IRA in 2025 is $7,000 or $8,000 for those age 50 and older. In 2026, the limit is $7,500 or $8,600 for those age 50 and older.
2025 and 2026 Traditional IRA contribution limits.
| 2025 contribution limits* | 2026 contribution limits* | |
|---|---|---|
| Under age 50 | $7,000 | $7,500 |
| Age 50 or older | $8,000 | $8,600 |
*Source: IRS Contribution Limits1, IRS 2026 Updates2
Tip: The annual IRA contribution limit applies to all your IRA accounts combined, including both Traditional and Roth IRAs.
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Eligibility criteria for traditional IRA contributions.
There are some criteria regarding income eligibility that you should be aware of as you’re getting ready to make contributions to a traditional IRA.
Contributions must be made with earned income.
The following are IRS-approved sources of earned income:
• Wages, salaries, and tips from which federal income taxes are withheld.
• Income from a job from which an employer did not withhold taxes, such as freelance work.
• Self-employed income.
Traditional IRAs have no income limit.
In other words, no matter how much money you make, you can contribute to a traditional IRA. By contrast, Roth IRAs do have income limits.
No age limit.
There is no age limit to contribute to a traditional IRA. -
2025 Traditional IRA income and tax deductibility limits.
While income doesn’t determine eligibility to contribute to a traditional IRA, it can have an impact on deductible contributions if an individual or their spouse has a retirement plan at work and their income exceeds a certain level. The chart below outlines traditional IRA contributions limits for 2025 based on filing status and whether you or your spouse are covered by an employer-sponsored retirement plan.
| Filing status | Modified adjusted gross income (MAGI) | Deduction limit |
|---|---|---|
| Single or head of household (and you are covered by an employer-sponsored retirement plan.) | $79,000 or less | Full deduction |
| More than $79,000 and less than $89,000 | Partial deduction | |
| $89,000 or more | No deduction | |
| Married filing jointly (and you are covered by an employer-sponsored retirement plan.) | $126,000 or less | Full deduction |
| More than $126,000 but less than $146,000 | Partial deduction | |
| $146,000 or more | No deduction | |
| Married filing jointly (and your spouse is covered by an employer-sponsored retirement plan.) | $236,000 or less | Full deduction |
| More than $236,000 but less than $246,000 | Partial deduction | |
| $246,000 or more | No deduction | |
| Married filing separately (and you or your spouse are covered by an employer-sponsored retirement plan.) | Less than $10,000 | Partial deduction |
| $10,000 or more | No deduction |
Tip: For help determining your Roth IRA contribution limits,
use our simple IRA contribution calculator.
2026 Traditional IRA income and tax deductibility limits.
| Filing status | Modified adjusted gross income (MAGI) | Deduction limit |
|---|---|---|
| Single or head of household (and you are covered by an employer-sponsored retirement plan.) | $81,000 or less | Full deduction |
| More than $81,000 and less than $91,000 | Partial deduction | |
| $91,000 or more | No deduction | |
| Married filing jointly (and you are covered by an employer-sponsored retirement plan.) | $129,000 or less | Full deduction |
| More than $129,000 but less than $149,000 | Partial deduction | |
| $149,000 or more | No deduction | |
| Married filing jointly (and your spouse is covered by an employer-sponsored retirement plan.) | $242,000 or less | Full deduction |
| More than $242,000 but less than $252,000 | Partial deduction | |
| $252,000 or more | No deduction | |
| Married filing separately (and you or your spouse are covered by an employer-sponsored retirement plan.) | Less than $10,000 | Partial deduction |
| $10,000 or more | No deduction |
What Happens If You Contribute Too Much?
This error can be costly. Excess funds are taxed at 6% for each year they remain in the IRA. However, individuals can avoid this tax by withdrawing excess contributions by the due date of their individual tax return. They must also withdraw any income earned on the excess funds during that period. However you will need to report those earnings as income on your tax return. And you may have to pay a 10% penalty for early withdrawal of the earnings if you are under age 59½.
Strategies to Avoid Excess Contributions
It’s also important to be aware that the IRA contribution limit is a combined maximum for all the IRAs you may have, including Roth IRAs. So your contributions to a traditional IRA and a Roth IRA cannot exceed the overall yearly contribution limit, which in 2025 is $7,000 for those under age 50 and $8,000 for those 50 and older. In 2026, those limits change to $7,500 for those under age 50 and $8,600 for those 50 and older.
FAQ
Is there an income limit to contribute to a traditional IRA?
No, there is no income limit to contribute to a traditional IRA. Individuals, regardless of their income, can contribute $7,000 to a traditional IRA in 2025 (or $8,000 if they are age 50 or older). In 2026, they can contribute $7,500 to a traditional IRA in 2025 (or $8,600 if they are age 50 or older).
Does contributing to a traditional IRA reduce taxable income?
Contributing to a traditional IRA may reduce your taxable income for the year. However, some or all of your contributions may be ineligible for tax deduction depending on your income and whether or not you or a spouse is covered by a retirement plan at work.
Can I max out a 401(k) and a traditional IRA in the same year?
Yes, you can max out a 401(k) and a traditional IRA in the same year. You can contribute up to $23,500 to a 401(k) in 2025 (or up to $31,000 for those age 50 and older), and you can also contribute up to $7,000 in a traditional IRA (or up to $8,000 for those 50 and older) in 2025.
For 2026, you can contribute up to $24,500 in a 401(k) (or up to $32,500 for those age 50 and older), and you can also contribute up to $7,500 in a traditional IRA (or up to $8,600 for those 50 and older).
Note that those age 60-63 may contribute a higher 401(k) catch-up contribution of up to $11,250 in both 2025 and 2026 due to a Secure 2.0 provision.
Article Sources
-
1 Internal Revenue Service.
“Retirement Topics – IRA Contribution Limits”
-
2 Internal Revenue Service.
“401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500”
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Roth IRA vs Traditional IRA
SoFi > Online Investing > IRA Accounts > Roth vs Traditional IRA
Roth IRA vs. Traditional IRA: Which IRA is the right choice for you?
Saving for retirement doesn’t have to be complicated. Learn the difference between a traditional IRA and a Roth IRA and decide what’s right for you.
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Traditional vs Roth IRA: an overview.
While both traditional and Roth IRAs can be great ways to save for retirement, there are a few key differences. With a traditional IRA, you contribute pre-tax dollars and get an upfront tax deduction on qualified contributions. However, you’ll pay taxes on withdrawals during retirement. When contributing to a Roth IRA, you pay taxes up front but qualified withdrawals in retirement are tax-free. Traditional IRAs have required minimum distributions (RMDs) starting at age 73, assuming you turn 72 after Dec. 31, 2022. Roth IRAs don’t have RMDs for the original account holder.
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Key differences between traditional and Roth IRAs:
See how Traditional and Roth IRAs compare side-by-side in the table below.
Find the perfect fit for your financial goals.
Traditional IRA |
Roth IRA |
||
|---|---|---|---|
Pay taxes on withdrawals |
Yes | No | |
Contributions |
Made with pre-tax dollars Details on Traditional IRA Contribution Limits |
Made with after-tax dollars Details on Roth IRA Contribution Limits |
|
Potential earnings |
Grow tax-deferred until withdrawal | Grow tax-free | |
Tax deductible |
Yes, if you meet income requirements | No | |
2025 contribution limits |
If you’re under 50: $7,000 If you’re 50 or older: $8,000 |
||
2026 contribution limits |
If you’re under 50: $7,500 If you’re 50 or older: $8,600 |
||
2025 income limits (for full contribution) |
None | If you’re single: $150,000 If you’re married: $236,000 |
|
2026 income limits (for full contribution) |
None | If you’re single: $153,000 If you’re married: $242,000 |
|
Required minimum distributions |
Generally required at age 73 | None | |
Early withdrawal penalties |
If before age 59 ½, may require you to pay taxes on earnings, plus 10% penalty | No penalties on contribution amounts, but earnings are subject to taxes and a 10% penalty for early withdrawal. | |
Tip: Use our IRA contribution calculator to determine
how much you can contribute.
Roth or traditional: Which IRA is right for you?
Take our personalized quiz and find the IRA that perfectly aligns with your retirement goals.
When to choose a traditional IRA:
If you expect to be in a lower tax bracket when you retire compared to your current one, and you qualify for the tax deductions, a traditional IRA might be right for you.
When to choose a Roth IRA:
If you expect to be in a higher tax bracket when you retire compared to your current one, and you meet the income eligibility criteria, a Roth IRA might be a good choice for you.
FAQ
Which is better, a Roth or Traditional IRA?
A Roth IRA may be better if you expect to be in a higher income tax bracket in retirement. That’s because with a Roth, you make contributions with after-tax dollars, the money in the account grows tax-free, and you generally withdraw the funds tax-free in retirement. A traditional IRA may be better for you if you expect to be in a lower tax bracket in retirement because you’ll pay taxes on withdrawals then. You can take deductions on your traditional IRA contributions upfront when you make them.
Am I eligible to open both a Roth IRA and a traditional IRA?
Yes, you’re able to open both a Roth IRA and a traditional IRA as long as you meet the income and contribution limits for both.
Can I roll over funds from one IRA type to another?
Yes, you can move funds from a traditional IRA to a Roth IRA by completing a rollover IRA. While less common, you can also rollover Roth funds to a traditional IRA. Since these may be a taxable events, we recommend that you speak to a tax advisor.
What happens to my IRA when I reach retirement age?
You can typically begin taking withdrawals from a traditional or Roth IRA when you reach age 59 ½. For a traditional IRA, you must begin taking required minimum distributions (RMDs) at age 72, or 73 if you turn 72 after Dec. 31, 2022. For a Roth IRA, there are no RMDs during your lifetime and qualified distributions are tax-free.
What are the benefits of opening a SoFi Invest IRA compared to other institutions?
With a SoFi traditional or Roth IRA, you:
• Don’t have to pay any account fees or have minimum contributions.
• Have access to a diverse range of investment options.
• Can tell us your goals and we’ll build a custom portfolio for you.
Get professional advice at no extra cost.
How can I get help choosing the right IRA with SoFi Invest?
Take the quiz above or talk to one of our Certified Financial Planner™ professionals to get an understanding of what retirement account options may be the best for you.
Article Sources
-
1 Internal Revenue Service.
“Retirement Topics – IRA Contribution Limits”
-
2 Internal Revenue Service.
“401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500”
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