Individual retirement accounts (IRAs) are among the most common ways to save for retirement. But if you own an IRA and you're not fully funding it each year, you could be missing an opportunity for your investments to grow tax deferred. Below are the current Roth IRA and traditional IRA contribution limits and deadlines as well as details on how you can take advantage of these retirement savings options.
IRA contribution limits
You can contribute up to 100% of your taxable compensation or the limit listed below, whichever is lower.
2026 |
2025 | |
|---|---|---|
| If you’re 49 or younger | $7,500 | $7,000 |
| If you’re 50 or older | $8,600 | $8,000 |
If you have more than one IRA (for example, a traditional IRA and a Roth IRA), your total combined contribution to all your accounts can't exceed the above limits.
To make an IRA contribution, you have to be eligible, which means you must either:
- Have taxable compensation, or
- Have a spouse with taxable compensation and file a joint tax return
In addition, if your income exceeds certain levels, the maximum Roth IRA contribution may be lower than the above amounts, or you may not be able to contribute to a Roth IRA at all. It's all based on your modified adjusted gross income, or MAGI. If your MAGI falls in the "partial" range, your tax advisor can help determine your exact IRA contribution maximum.
IRA deduction limits
Contributions to a Roth IRA are never tax-deductible. You pay income tax on the full amount of your contribution. However, qualified Roth IRA withdrawals are tax-free, providing the potential for tax-free income in retirement.
You may be able to deduct your traditional IRA contributions from your taxable income, depending on how much you earn and whether you or your spouse is an active participant in an employer-sponsored retirement plan, such as a 401(k).
For more details about IRA requirements, visit the IRS website.
IRA contribution deadlines
Contributions can be made at any time during the year up to the tax-filing deadline, not including extensions, generally April 15. See this tax season calendar for the exact deadline.
Maximize your IRA contributions with Edward Jones
A Roth or traditional IRA can be an essential part of your retirement savings strategy. It offers a tax-advantaged way to help build your retirement nest egg. And the earlier you contribute to your IRA, the more time your money can benefit from potential growth. Visit our retirement calculator to see the impact time has on potential growth.
Don't pass up this opportunity to help prepare for your financial future. Your Edward Jones financial advisor can answer your questions, review your current savings and help you develop a personalized strategy to help achieve your retirement goals.
Important information:
Traditional: Early distributions may be subject to tax and a 10% penalty if you take a distribution before reaching age 59½.
Roth: Earnings distributions may be subject to tax and a 10% penalty if the account is less than five years old and the owner is younger than 59½. This content is intended as educational and should not be interpreted as a specific recommendation or investment advice. Investors should make investment decisions based on their unique investment objectives and financial situation. The material contained herein has been prepared from sources and data we believe to be reliable, but we make no guarantee to its accuracy or completeness.
Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.