3 Big IRA Rule Changes to Watch for in 2026

New IRA rules set to take effect on Jan. 1, 2026, could affect how much you're able to save in traditional and Roth IRAs next year. These will apply to all IRA owners, although they're especially important for high earners who are more likely to max out their accounts.

If you hope to get the most out of your IRA, you must understand the three major changes below. Revise your savings strategy if necessary so you don't run into problems with the IRS or miss opportunities to stash away even more for the future.

Image source: Getty Images.

1. Higher contribution limits

In 2025, those under 50 can contribute up to $7,000 to an IRA. This limit applies to all of your traditional and Roth IRAs, not to each account individually. The IRS evaluates the limit annually, and next year it will increase to $7,500.

Those hoping to max out their IRAs in 2026 will need to save $625 per month. If you defer some money each pay period and get paid twice per month, that comes out to about $313 per paycheck. If that's not possible, you can always save less per month and make up for it by putting a portion of your tax refund and any year-end bonus you qualify for in your IRA.

2. Increased catch-up contributions for seniors

Those who will be 50 or older by the end of the year have long had the option to contribute an extra $1,000 above the standard contribution limit. That means those 50 and older in 2025 can save up to $8,000 in their IRAs this year. With the increasing contribution limit for those under 50, older adults will also be able to contribute more.

The catch-up contribution itself is also set to rise from $1,000 to $1,100. This brings the maximum 2026 IRA contribution for those 50 and up to $8,600. Reaching this limit would require monthly contributions of $717 per month or twice-monthly contributions of $358.

3. Greater eligibility for Roth IRAs

You can contribute to a traditional IRA as long as you or your spouse have earned enough during the year to cover the amount of your contributions. There is no upper income limit; however, some high earners may not be able to deduct their traditional IRA contributions.

Roth IRAs work differently. There are income limits that restrict how much high earners can contribute and prohibit some individuals from making direct contributions to a Roth IRA. The restrictions vary depending on your income and tax filing status.

Single adults and heads of household can contribute:

• Up to the annual limit if their income is less than $153,000 in 2026 ($150,000 in 2025)
• A reduced amount if their income is between $153,000 and $168,000 in 2026 ($150,000 and $165,000 in 2025)
• Nothing if their income exceeds $168,000 in 2026 ($165,000 in 2025)

Married couples filing jointly and qualifying widow(er)s can contribute:

• Up to the annual limit if their income is less than $242,000 in 2026 ($236,000 in 2025)
• A reduced amount if their income is between $242,000 and $252,000 in 2026 ($236,000 and $246,000 in 2025)
• Nothing if their income exceeds $252,000 in 2026 ($246,000 in 2025)

In both years, those filing their taxes as married filing separately who earn more than $10,000 are not eligible to contribute to a Roth IRA.

Exceeding your limit can result in costly tax penalties. If you're not eligible to contribute as much as you'd like to a Roth IRA, you're better off using a Roth 401(k) if you have one through your job. These accounts don't have income limits like Roth IRAs. Alternatively, you could consider a backdoor Roth IRA, which involves contributing to a traditional IRA and then converting it to a Roth IRA.

If any of the above changes surprised you, it might be time to rethink your plans for 2026. Figure out a contribution schedule that works for you so you can get off to a fast start in January.

The Motley Fool has a disclosure policy.