Roth IRA Contribution Limit Increases for 2026

The Internal Revenue Service has announced notable increases in retirement contribution limits for tax year 2026, giving savers more room to build long-term wealth. Most relevant to Roth savers, the Roth IRA annual contribution limit is rising from $7,000 in 2025 to $7,500 in 2026 for individuals under age 50. Those age 50 and over can now contribute up to $8,600 thanks to an increased catch-up allowance, up from $8,000 previously. These changes reflect routine cost-of-living adjustments and present a straightforward opportunity to accelerate retirement savings.

In addition to higher dollar ceilings, the income phase-out ranges that determine eligibility for Roth IRA contributions have also been adjusted upward in 2026. Single filers can make full Roth contributions with a modified adjusted gross income (MAGI) up to $153,000, and joint filers up to $242,000 before phase-outs begin. Partial contributions are still possible within the phase-out bands above those thresholds.

For many savers, maximally funding a Roth IRA makes sense because of the tax treatment. Unlike traditional IRAs, Roth contributions are made with after-tax dollars, meaning you don’t get an upfront deduction, but qualified withdrawals in retirement are completely tax-free, including investment gains. That tax-free growth can be especially valuable if you expect to be in a higher tax bracket later in life or want greater control over your retirement income tax profile.

Beyond taxes, Roth accounts offer flexibility that many other retirement vehicles do not. Original Roth IRA contributions can generally be withdrawn at any time, at any age, without tax or penalty, and Roth IRAs are not subject to required minimum distributions during the owner’s lifetime. Investment earnings are treated differently: to withdraw earnings tax- and penalty-free, the account owner must be at least age 59½ and the Roth IRA must have been open for at least five tax years. With the higher contribution limits for 2026, these features continue to make Roth IRAs a powerful tool for long-term, tax-efficient retirement planning.