IRA Contribution Limits Are Increasing in 2026. Here's How Much You Need to Save Per Month to Max Yours Out.

Maxing out your individual retirement account (IRA) is a great way to improve your retirement readiness, but it's a tall order. In 2025, it means saving $7,000 if you're under 50 or $8,000 if you're 50 or older. And next year, it will be even more challenging because IRA contribution limits are increasing.

That said, it might still be possible for you with the right strategy. If you'd like to give it a shot, here's how much you need to save each month in 2026.

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The IRA annual contribution limit is climbing to $7,500 for those under 50

Those 50 and under will see their IRA annual contribution limit increase to $7,500 in 2026 -- a $500 increase. Individuals aged 50 and older will receive a $600 increase, as the maximum IRA catch-up contribution increases from $1,000 to $1,100 next year. This means anyone who will be 50 or older by Dec. 31, 2026, can save up to $8,600 in their IRA.

Note that these contribution limits apply to all of your IRAs -- traditional and Roth -- rather than to each account individually. If you plan to spread your money between multiple accounts, you'll have to be careful not to exceed the above limits. Otherwise, you could face penalties for the excess contributions.

How to max out your IRA in 2026

IRAs allow for lump-sum contributions, so there's no one strategy for maxing out your account. You can add money as you're able to, but if you want to give yourself the best odds of success, it helps to make regular contributions.

This could be monthly or by pay period. If you decide to make monthly contributions, you'll need to set aside $625 per month if you're under 50. Those 50 and older will need to save approximately $717 per month. If you get paid twice a month, you'd just divide these amounts in half to determine how much you need to set aside per pay period.

If you cannot afford to save that much, figure out what you can afford to set aside. Then, see whether you can make up the difference with windfalls, such as your tax refund or a year-end bonus.

Even if you fall short of maxing out your IRA, saving something is still an accomplishment worth celebrating. The money you're saving now will increase your quality of life in retirement, and it may give you a tax break this year if you put it in a traditional IRA.

Choosing between a traditional and Roth IRA

Before you start stashing money away for 2026, weigh the pros and cons of each type to determine which one makes the most sense for you. As mentioned above, traditional IRAs give you an up-front tax break, and they're available to anyone. However, you will need to pay taxes on your withdrawals later. This could make sense for you if you expect to drop into a lower tax bracket in retirement.

If not, a Roth IRA might be more your speed. You don't get tax breaks for your contributions, but your money grows tax-free afterward. This gives you greater control over your retirement tax bill. However, high earners aren't eligible to contribute to a Roth IRA directly due to the income limits. You can also use both account types as long as you're careful to stay under the annual contribution limits.

Consider setting up automatic transfers from your bank account to your IRA so you don't have to remember to transfer the funds manually. This will give you one less thing to worry about, and it'll ensure you don't accidentally spend money meant for retirement savings.

Check in with yourself as you get deeper into 2026. If you're struggling to hit your savings targets, you might need to scale back. And if you inadvertently set aside too much, you can slow or stop your contributions so that you don't exceed the annual limit.

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