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Whether you’ve been contributing regularly or haven’t checked in for a while, a quick review can help you stay on track and take full advantage of your tax benefits and growth potential.
1. Confirm Your Contribution Limit
Check how much you’ve contributed so far and make sure you’re on track for 2025 and 2026.
Roth IRA & Traditional IRA Limits:
- 2025: $7,000 total contribution ($8,000 if you’re 50 or older, including $1,000 catch-up)
- 2026: $7,500 total contribution ($8,500 if you’re 50 or older, including $1,000 catch-up)
Contributions to both Roth and Traditional IRAs combined cannot exceed the annual limit, so plan accordingly if you contribute to both.
Contribution Deadlines:
- For the 2025 tax year: Contributions are due by April 15, 2026
- For the 2026 tax year: Contributions are due by April 15, 2027
Even if you can’t max out your accounts, contributing any amount before the deadline can be better than leaving room unused.
2. Check Your Income Eligibility
Roth IRA contributions are limited by income, depending on your Modified Adjusted Gross Income (MAGI), while Traditional IRA contributions may be partially or fully deductible, depending on income and whether you have a workplace retirement plan.
Roth IRA Eligibility:
2025:
- Single filers: Full contribution if MAGI is less than $150,000, partial up to $165,000
- Married filing jointly: Full contribution if MAGI less than $236,000, partial up to $246,000
2026:
- Single filers: Full contribution if MAGI less than $153,000, partial up to $168,000
- Married filing jointly: Full contribution if MAGI less than $240,000, partial up to $250,000
Traditional IRA Deductibility (if you or your spouse have a workplace plan)
Deduction phases out based on income and filing status. If neither you nor your spouse has a workplace plan, contributions are fully deductible.
Active participants in a workplace plan:
2025:
- Single filers: $79,000 – $89,000
- Married filing jointly: $126,000 – $146,000
2026:
- Single filers: $81,000 – $91,000
- Married filing jointly: $129,000 – $149,000
Not active but married to someone who is:
2025:
- Married filing jointly: $236,000 – $246,000
2026:
- Married filing jointly: $242,000 – $252,000
If you qualify, contributing early lets your Roth or Traditional IRA grow for longer, while taking full advantage of tax benefits, and you have until the tax filing deadline to make your 2025 contributions.
3. Review Your Investment Choices
Your IRA is more than a savings account. It’s the foundation for your retirement. Take a moment to review how your money is invested. Are you comfortable with your mix of stocks, bonds, or mutual funds? You might also consider exchange-traded funds (ETFs), which can offer accessibility, broad diversification, and potentially lower fees, making them a strong fit for long-term retirement growth. Whatever you choose, make sure your allocation still matches your retirement timeline and comfort with risk.
- Roth IRAs can be helpful for long-term growth due to tax-free withdrawals.
- Traditional IRAs allow tax-deferred growth, which can be a key advantage if you expect to be in a lower tax bracket in retirement.
If you prefer a hands-off approach, a target-date fund can gradually shift your investments toward lower-risk options as you get closer to retirement, helping manage potential losses while still giving your money a chance to grow.
4. Consider Rolling Over Old 401(k)s
If you have old 401(k)s from previous employers, consider consolidating them into an IRA:
- Traditional IRA: Maintains pre-tax status; taxes are deferred until withdrawal.
- Roth IRA: Converting pre-tax funds triggers taxes now but allows future tax-free withdrawals.
Rolling over can help simplify management, improve investment options, and potentially give you more control over withdrawals.
