IRA regular contributions: Eligibility, limits, and deductibility

Example

Jane, who in 2025 was age 42 and single, had compensation and MAGI of $60,000 in 2025. Because her income was less than $150,000, Jane may make a full Roth IRA regular contribution for 2025 by April 15, 2026. Assuming Jane’s MAGI remains below $153,000 for 2026, she can make a full Roth IRA regular contribution for 2026.

Example

Sherry and Alex, ages 47 and 52, respectively, are married, had compensation and MAGI of $148,000 in 2025, and will file a joint federal income tax return for 2025. Because their joint MAGI was less than $236,000, both Sherry and Alex can make a full Roth IRA regular contribution for 2025 by April 15, 2026. Assuming their MAGI remains below $242,000 for 2026, they can also each make a full Roth IRA regular contribution for 2026.

Traditional and Roth IRA regular contribution limits

The following chart shows the 2025 and 2026 traditional and Roth IRA regular contribution limits:

An individual may choose to deposit an amount up to his/her regular contribution limit to either a traditional IRA or a Roth IRA, or he/she may split the regular contribution limit amount between a traditional and Roth IRA. If making a regular contribution to both a traditional and a Roth IRA, the total amount contributed cannot exceed the contribution limit.

Example continued

Jane, from an earlier example, was 42 years old and single in 2025, and had compensation and MAGI of $60,000 in 2025. Jane’s traditional and Roth IRA regular contribution limit (in aggregate) for 2025 is $7,000. Assuming Jane has compensation for 2026, her traditional and Roth IRA regular contribution limit (in aggregate) is $7,500.

Example continued

Sherry and Alex, from an earlier example, were 47 and 52 years old, respectively, and married in 2025. Sherry and Alex had compensation and MAGI of $148,000 in 2025 and will file a joint federal income tax return for 2025. Sherry’s 2025 traditional and Roth IRA regular contribution limit (in aggregate) is $7,000 and Alex’s 2025 traditional and Roth IRA regular contribution limit (in aggregate) is $8,000. Assuming Sherry and Alex have the same compensation and MAGI for 2026, Sherry’s traditional and Roth IRA regular contribution limit (in aggregate) is $7,500 and Alex’s traditional and Roth IRA regular contribution limit (in aggregate) is $8,600.

Traditional IRA deductibility thresholds

An individual is eligible to make a traditional IRA regular contribution if he/she has compensation, however, such contributions may or may not be deductible. Individuals that are active participants in certain employer plans and whose MAGI is too much will be restricted from taking a deduction for a traditional IRA regular contribution. These MAGI limits are subject to an annual COLA and are as follows for 2025 and 2026:

Example

Continuing with an earlier example, Jane was 42 years old and single in 2025 and had compensation and MAGI of $60,000 for 2025. Jane meets the eligibility requirements to make a traditional IRA regular contribution, and though she was an active participant in her employer’s 401(k) plan during 2025, her MAGI was less than $79,000, allowing her to fully deduct such contribution for 2025. Jane is also eligible to make a Roth IRA contribution. So, preferably with the guidance of a tax professional, Jane may choose to make either a deductible traditional IRA contribution, a Roth IRA contribution which is not deductible, or may split her contribution between the two IRA types. Only the portion she contributes to the traditional IRA is eligible to be deducted.

Example

Continuing with an earlier example, Sherry and Alex, ages 47 and 52, respectively, were married and had compensation and MAGI of $148,000 in 2025. During 2025, Sherry was a participant in her employer’s retirement plan, however, Alex did not participate in an employer sponsored retirement plan. Since their MAGI was more than $146,000 any traditional IRA regular contribution made by Sherry makes for 2025 will not be deductible. However, even though Alex was married to an active participant, he was not an active participant himself and for that reason, any traditional IRA contribution he makes is eligible to be deducted since their MAGI was below $236,000. So, with the guidance of a tax professional, Sherry may decide to contribute to a Roth IRA for 2025 and Alex may choose to either make a traditional IRA deductible contribution, forego the deduction and make a Roth IRA contribution for 2025, or make a regular contribution to each IRA type for 2025, considering his contributions (in aggregate) do not exceed $8,000.

IRA contribution deadline

The IRA regular contribution deadline is an individual’s tax-filing deadline, excluding extensions (generally, April 15 following the year for which the contribution is made).

When accepting regular contributions between January 1 and an individual’s tax-filing deadline, it’s always important to ask which tax year (i.e., previous or current) the regular contribution is intended for, and to document it properly.

Making contributions for both previous year and current year

Occasionally, IRA owners make contributions for both the previous and current year at the same time. This generally can only occur between January 1 and April 15.

Example

Jane, from an earlier example, was 42 years old and single in 2025, and had compensation and MAGI of $60,000 in 2025. Deciding to contribute to a traditional IRA, on March 12, 2026, Jane makes both her 2025 and 2026 contributions, subsequently writing a check to ABC Bank for $14,500. ABC Bank documents a $7,000 contribution for 2025 to her traditional IRA and separately documents a $7,500 contribution for 2026 to the same traditional IRA. Jane will deduct her 2025 $7,000 traditional IRA regular contribution on her 2025 federal income tax return. Assuming Jane’s MAGI is below $81,000 in 2026, she will again qualify to deduct her entire 2026 traditional IRA regular contribution on her 2026 federal income tax return.

Conclusion

An IRA owner, not an IRA custodian/trustee, is responsible for determining his/her regular IRA contribution eligibility, whether he/she can deduct all or a portion of a traditional IRA regular contribution, or the amount of the Roth IRA regular contribution he/she is eligible to contribute. Although an IRA custodian/trustee can assist individuals by educating them on IRA rules, IRA owners should make their IRA decisions with the guidance of his/her tax or legal professional.

For an opportunity to learn more about IRAs and other tax-advantaged accounts including Health Savings Accounts and Coverdell Education Savings Accounts, consider the Wolters Kluwer IRA Library Electronic Book (IRA E-Book) or our On-Demand Video Training offered on a variety of topics. Go here to learn more about training opportunities available to you, or you can call us at 1-800-552-9408.