New IRA Rules Every Young Investor Must Know Before Summer 2026

Using IRAs is one of the best ways to financially prepare for retirement, but they're not always the easiest to keep up with because they're constantly changing. Luckily, we've got you covered.

Here are three IRA changes to know as we begin 2026.

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A higher contribution limit

The amount you can contribute yearly to an IRA increased by $500 to $7,500 (for those 50 and older, $8,600 with a catch-up contribution). This is for both traditional and Roth IRAs combined; you can't contribute $7,500 to each account.

The good news is that you have until Tax Day of the following year to make your contributions for a given year. For example, you have until April 15, 2026, to make your 2025 contributions, and you'll have until April 15, 2027, to make your 2026 contributions.

Higher Roth IRA income limits

The maximum amount of money you can earn and still be eligible to contribute to a Roth IRA increased to $168,000 if you're single and $252,000 if you're married and filing jointly.

Traditional IRA phase-out ranges are different

If you have an active workplace retirement account (like a 401(k)), there's a limit on how much you can earn and still take a deduction for your contributions.

The new phase-out range for single people is $81,000 to $91,000. If you're married and filing jointly, it's $129,000 to $149,000. If you earn below the phase-out range, you can deduct your full contribution. Earnings in the phase-out range mean the amount you can deduct will be lower the more you earn.

If you're not covered at work but your spouse is, the phase-out range is $242,000 to $252,000.

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