How it works
2026 Roth IRA limits used
- Contribution limit: $7,500.00, or $8,600.00 if you are 50 or older ($1,100.00 catch-up). The limit is shared across all your traditional and Roth IRAs and cannot exceed your taxable compensation.
- Income phase-out (MAGI): single and head of household $153,000.00–$168,000.00; married filing jointly $242,000.00–$252,000.00; married filing separately $0–$10,000.
How the phase-out is calculated
Inside the phase-out range the allowed contribution shrinks in proportion to how far your MAGI is into the range, following the IRS worksheet:
allowed = limit × (top of range − MAGI) ÷ (width of range)
The result is rounded up to the next $10, and if it is above zero but below $200 you may still contribute $200. Above the top of the range, direct Roth contributions are not allowed.
Growth formula
Contributions are spread evenly across the year and the balance compounds monthly: balance = balance × (1 + r/12) + contribution / 12, repeated each month until retirement. Your age is advanced each year, so the catch-up applies automatically from 50. Future limits are held at 2026 levels, and your MAGI is assumed to stay the same.
Worked examples
Age 30, $7,500 per year, 7% return, single with $90,000 MAGI, retire at 65
MAGI is below $153,000.00, so the full $7,500.00 is allowed (rising to $8,600.00 from age 50). Projected tax-free balance at 65: $1,125,659.13 from $262,500.00 of contributions.
Age 52, $40,000 balance, wants $8,600 per year, 6% return, married filing jointly with $245,000 MAGI, retire at 67
MAGI is inside the $242,000.00–$252,000.00 range, so the allowed contribution is reduced to $6,020.00 per year. Projected balance at 67: $244,057.80 ($90,300.00 contributed).
Why a Roth IRA?
You contribute money you have already paid tax on. In exchange, the account grows tax-free and qualified withdrawals in retirement — generally after age 59½ and once the account has been open five years — are not taxed. You can also withdraw your contributions (not earnings) at any time without tax or penalty, and Roth IRAs have no required minimum distributions for the original owner.
Roth vs. traditional IRA
- Roth tends to win if you expect a higher tax rate in retirement than today, or if you value tax-free flexibility later.
- Traditional can win if your tax rate today is high and you expect it to fall in retirement, because contributions may be deductible.
- Many people split contributions to diversify their future tax exposure.
Tips
- Contribute early in the year if you can — money invested in January has more time to grow. The deadline for 2026 contributions is your tax filing deadline in April 2027.
- Watch your MAGI. Pre-tax 401(k) contributions lower MAGI and can bring you below the phase-out range.
- Over the limit? High earners sometimes use a “backdoor” Roth (a nondeductible traditional IRA contribution followed by a conversion). The pro-rata rule makes this complicated; talk to a tax professional.
- Spousal IRA. A non-working spouse can contribute based on the working spouse's income when filing jointly.
- Pair your IRA with your workplace plan — see the 401(k) calculator.
Roth IRA rules worth knowing
The five-year rule. To withdraw earnings tax-free, your first Roth IRA contribution must have been made at least five tax years earlier and you generally must be 59½ or older (or meet another exception, such as disability or a first-time home purchase up to $10,000). Each Roth conversion also has its own five-year clock for penalty purposes if you are under 59½.
Ordering rules. Withdrawals come out in a set order: first your regular contributions, then conversions, then earnings. Because contributions come out first, a Roth IRA can double as a backup emergency fund, although money withdrawn cannot be put back except within the normal annual limit.
Earned income requirement. You can contribute only up to your taxable compensation for the year. A student earning $4,000 from a summer job can contribute at most $4,000, even though the 2026 limit is $7,500.00.
Deadline. Contributions for 2026 can be made from January 1, 2026 until the federal tax filing deadline in 2027. Be sure to tell your brokerage which tax year a contribution is for when you make it between January and April.
How to read your results
The projected balance assumes you keep contributing the same dollar amount every year, adjusted only for the age-50 catch-up and your income limit. In practice, many people increase their contribution as the IRS raises the limit, which would produce a larger balance than shown. Conversely, the return you choose is an average; a few poor years near retirement can lower the final value, which is why many investors shift gradually toward more conservative holdings as retirement approaches.
Frequently asked questions
What is the Roth IRA contribution limit for 2026?
$7,500.00, or $8,600.00 if you are 50 or older, combined across all your traditional and Roth IRAs, and not more than your taxable compensation (IRS).
What are the 2026 Roth IRA income limits?
Contributions phase out between $153,000.00 and $168,000.00 of MAGI for single and head-of-household filers, and between $242,000.00 and $252,000.00 for married couples filing jointly. For married filing separately (if you lived with your spouse) the range is $0–$10,000.
How is a reduced contribution calculated?
Multiply the limit by the fraction of the phase-out range remaining above your MAGI, round up to the next $10, and use at least $200 if the result is positive. The calculator does this automatically.
When can I withdraw from a Roth IRA tax-free?
Contributions can be withdrawn at any time. Earnings are tax- and penalty-free once you are 59½ and the account has met the five-year rule, with some exceptions.
Can I have a Roth IRA and a 401(k)?
Yes. The IRA limit is separate from the 401(k) limit, and having a workplace plan does not affect Roth IRA eligibility (only your income does).
What if I contribute too much?
Excess contributions are subject to a 6% excise tax each year they remain in the account. You can usually fix it by withdrawing the excess and its earnings before your tax-filing deadline.
Is the projected balance in today’s dollars?
No, it is in future dollars. Use the inflation calculator to convert it into today’s purchasing power.