Tax deductible contributions to traditional IRAs are available to everyone! Sometimes

Every January, the IRS quietly updates a few numbers that can make a real difference in your financial life. This year, the news is genuinely worth smiling about. Contribution limits for Traditional IRAs have gone up for 2026, which means more room to save, more room to shelter income from taxes, and one more reason to feel good about the road to retirement.

Here's everything you need to know, minus the doublespeak and jargon.

Starting in 2026, you can contribute:

• $7,500 to a Traditional IRA if you're under age 50 (up from $7,000 in 2025)

• $8,600 if you're 50 or older, thanks to a $1,100 catch-up contribution (up from $8,000 in 2025)

These might seem like a small bump on paper, but compounded over the years, it adds up to real money working on your behalf. One important note: this limit is combined across all your Traditional and Roth IRAs. If you contribute to both types, the total across both still can't exceed $7,500 (or $8,600).

To allay any confusion, there is no age limit on contributing to a Traditional IRA. As long as you, or your spouse if you're filing jointly, have earned income such as a paycheck or self-employment income, you're eligible to contribute, whether you're 25 or 125.

The one cap to keep in mind: you can't contribute more than you earned that year. If your income was $4,000, that's your ceiling, not the $7,500 limit.

Now for the "Sometimes" Part: Is It Deductible?

This is where things get a little more nuanced, but stick with me. It's simpler than it looks.

If neither you nor your spouse is covered by a retirement plan at work, such as a 401(k), your Traditional IRA contribution is fully tax-deductible, no matter how much you earn. Simple as that.

If you are covered by a workplace plan, even if you do not contribute to it, your deduction phases out once your income crosses a certain threshold. Here's where things stand for 2026:

Filing Status	Full Deduction Below	Phased Out Above
Single, covered by a workplace plan	$81,000	$91,000
Married filing jointly, contributing spouse covered	$129,000	$149,000
Married filing jointly, contributing spouse not covered but other spouse is	$242,000	$252,000
Married filing separately, covered by a workplace plan	$0	$10,000

Every one of these thresholds moved up from 2025, which means a few more households now qualify for a full or partial deduction than did last year. Even if you land in the middle of a phase-out range, you're not out of luck. You likely still qualify for a partial deduction.

If you still wish to make IRA contributions that are not tax-deductible, let's talk. Your money will grow tax-deferred inside the account, but it must be carefully accounted for when taking distributions in the future, or it may help set the stage for a future backdoor Roth conversion.

The Bottom Line

More room to contribute, more people qualifying for a deduction, and no age limit standing in your way. 2026 is a genuinely good year to lean into your retirement savings. If you'd like to figure out exactly how these new numbers apply to your situation, we're standing by to listen!

This article is for general informational purposes and isn't personalized tax or investment advice. As a matter of policy, we don't provide tax advice. Reach out to discuss how this might apply to your specific circumstances.