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2026 Traditional IRA Deduction Limits

For 2026, several income thresholds have increased, which may allow more people to deduct some or all of their Traditional IRA contributions. Here’s a breakdown of Traditional IRA deduction limits for 2026, how they work, and what they could mean for your retirement strategy.

What is a Traditional IRA Deduction?

When you contribute to a Traditional IRA, you may be able to deduct that contribution on your federal tax return, reducing your taxable income for the year. This is different from a Roth IRA, where contributions are made with after-tax dollars and aren’t deductible.

That deduction isn’t automatic. Whether your Traditional IRA contribution is:

  • Fully deductible
  • Partially deductible
  • Not deductible at all

It depends on three key factors:

  1. Your Modified Adjusted Gross Income (MAGI)
  2. Your tax filing status
  3. Whether you or your spouse is covered by a workplace retirement plan, such as a 401(k)

Traditional IRA Contribution Limits for 2026

Before talking about deductions, it helps to start with how much you’re allowed to contribute.

For 2026, the IRS allows:

  • Up to $7,500 in total IRA contributions
  • Up to $8,600 if you’re age 50 or older, thanks to a $1,100 catch-up contribution

‍

This limit applies across all IRAs combined, meaning the total you contribute to Traditional and Roth IRAs together must stay within these limits.

Traditional IRA Deduction Limits for 2026

The deduction rules change depending on whether you’re covered by a retirement plan at work.

If You Are Covered by a Workplace Retirement Plan

If you participate in a 401(k), 403(b), or similar employer-sponsored plan, your ability to deduct Traditional IRA contributions phases out at higher income levels.

For 2026, if you are covered by a workplace retirement plan:

Filing Status Full Deduction (MAGI) Partial Deduction (MAGI) No Deduction (MAGI)
Single filers $81,000 or less Between $81,000 and $91,000 $91,000 or more
Married filing jointly $129,000 or less Between $129,000 and $149,000 $149,000 or more
Married filing separately (lived with spouse) N/A $0 to $10,000 $10,000 or more

‍

Once your income moves into the phase-out range, the IRS limits how much of your contribution you can deduct rather than eliminating the deduction immediately.

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If You Are Not Covered by a Workplace Retirement Plan

This is where Traditional IRAs can be especially helpful.

  • If neither you nor your spouse is covered by a workplace plan, your contribution is fully deductible regardless of income.
  • If you are not covered, but your spouse is, income limits apply.

‍

For 2026, when your spouse has a workplace plan and you don’t:

Filing Status Full Deduction (MAGI) Partial Deduction (MAGI) No Deduction (MAGI)
Married filing jointly $242,000 or less Between $242,000 and $252,000 $252,000 or more
Married filing separately $0 Between $0 and $10,000 $10,000 or more

How Partial Traditional IRA Deductions Work

If your income falls within a phase-out range, you’re still allowed to deduct part of your contribution. The important takeaway is that being in the phase-out range doesn’t automatically mean your contribution loses value,  it just changes how it’s treated for tax purposes.

Important Rules to Keep in Mind

Earned Income Requirement

You can only contribute up to the amount of earned income you have for the year. If you earned $5,000 in 2026, that’s the maximum you can contribute, even though the IRA limit is higher.

Contribution Deadline

You typically have until the tax filing deadline (usually April of the following year) to make a Traditional IRA contribution for the prior tax year.

Nondeductible Contributions

If your income is too high to deduct your contribution, you can still contribute to a Traditional IRA, you just won’t get the tax deduction. These contributions must be tracked and reported to avoid double taxation later.

Why Traditional IRA Deduction Limits Matter

Understanding Traditional IRA deduction limits can help you make smarter decisions about where to save and how to manage taxes over time. Depending on your income and workplace benefits, you might decide to:

  • Split contributions between a Traditional IRA and a Roth IRA
  • Focus more on employer-sponsored plans
  • Use nondeductible Traditional IRA contributions as part of a longer-term strategy

‍

The 2026 updates give some savers more room to deduct contributions but the right approach depends on your full financial picture.

Ready to Simplify Your Retirement?

Understanding these deductions can help you lower your taxable income today while letting your savings grow tax-deferred for the future. But keeping track of multiple accounts can make it harder to manage your contributions. 

That’s where PensionBee comes in. We help make it simple to rollover your old 401(k)s and IRAs into one account, giving you a clear view of your savings. Many rollovers happen automatically, but if yours requires extra attention, our personal rollover managers, called BeeKeepers, are ready to guide you every step of the way. With expert management and diversified portfolios with by ETFs like SPY and MDY from State Street Investment Management, one of the world’s largest asset managers.

Frequently Asked Questions (FAQs)

1. What is a Traditional IRA deduction?

A Traditional IRA deduction lets you subtract your contributions from your taxable income on your federal tax return. This can help lower your tax bill now while allowing your retirement savings to grow tax-deferred until you withdraw them in retirement.

2. Who is eligible to deduct contributions to a Traditional IRA?

Eligibility depends on your income, filing status, and whether you (or your spouse) have a workplace retirement plan, like a 401(k). If neither of you are covered by a workplace plan, you can usually deduct your full contribution.

3. How much can I deduct for a Traditional IRA in 2026?

For 2026, you can contribute up to $7,500 to your Traditional IRA, or $8,600 if you’re 50 or older. How much you can deduct depends on your income and workplace plan coverage.

4. Do Traditional IRA deduction limits depend on income?

Yes. If you or your spouse are covered by a retirement plan at work, your deduction phases out at higher incomes.

5. What is the phase-out range for Traditional IRA deductions?

The phase-out is the income range where your deduction gradually decreases. For 2026, single filers covered by a workplace plan have a phase-out range of $81,000–$91,000, while married couples filing jointly have $129,000–$149,000.

6. How does being covered by a workplace retirement plan affect my deduction?

If you’re covered by a plan like a 401(k), your deduction may be reduced or eliminated depending on your income. If neither you nor your spouse are covered, you generally get the full deduction regardless of income.

7. Can married couples file jointly and still take a full Traditional IRA deduction?

Yes, but it depends on workplace plan coverage. If neither spouse is covered, you can take the full deduction.

9. Are Traditional IRA contributions deductible if I also contribute to a Roth IRA?

Yes, but in 2026, the total contribution limit of $7,500 ($8,600 if 50 or older) applies to all IRAs combined. Only your Traditional IRA contributions may be deductible; Roth contributions are made with after-tax dollars and aren’t deductible.

10. When is the deadline to make a deductible Traditional IRA contribution?

You have until the tax filing deadline of the following year (usually April) to make a contribution that counts for the previous tax year.

11. Do catch-up contributions for those 50 and older affect the deduction?

Yes. If you’re 50 or older, you can contribute an extra $1,100 in 2026. This catch-up contribution is also deductible, subject to the same income limits.

Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.

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