Roth vs Traditional IRA
Schedule BEligibility 2026

Roth IRA income limits 2026

Roth contributions phase out at modified adjusted gross income (MAGI) thresholds. Above the upper bound, direct Roth contributions are not allowed and you go through the backdoor. Traditional deductibility has its own, lower phase-outs when you have a workplace plan.

§ I

2026 Roth IRA income limit table

Filing statusFull contribution if MAGI belowPhase-out rangeNo contribution above
Single / Head of household$150,000$150K - $165K$165,000
Married filing jointly$236,000$236K - $246K$246,000
Married filing separately$0$0 - $10K$10,000
§ II

How phase-out works

Worked example, single filer

Your MAGI is $158,000. You are $8,000 into the $15,000 phase-out range. The reduced Roth limit:

$7,000 * (($165K - $158K) / $15K) = $3,267

Round up to the nearest $10. Your maximum allowed Roth contribution is $3,270.

What MAGI includes

MAGI = AGI + student loan interest deduction + foreign earned income exclusion + a few other adjustments. For most W-2 employees, MAGI equals AGI.

Use effectivetaxratecalculator.com to estimate your effective rate from AGI before running the IRA phase-out math.

§ III

Traditional IRA deduction phase-outs (with workplace plan)

If you (or your spouse) participate in a workplace retirement plan, the Traditional IRA deduction phases out at lower thresholds than the Roth direct-contribution limits.

Filing statusFull deduction belowPhase-out rangeNo deduction above
Single, has workplace plan$79,000$79K - $89K$89,000
MFJ, has workplace plan$126,000$126K - $146K$146,000
MFJ, spouse has plan, you don't$236,000$236K - $246K$246,000
Neither spouse has workplace planNo phase-out--
§ IV

If you earn too much for direct Roth

Best option

Backdoor Roth

Non-deductible Traditional contribution converted immediately to Roth. Legal since 2010. Watch the pro-rata rule.

Step-by-step →
Workplace plan

Roth 401(k) at work

401(k) Roth deferrals have no income limit. If your employer offers it, $24,500 of tax-free Roth space in 2026.

401(k) vs Roth →
Last resort

Non-deductible Traditional

Worse than backdoor: same after-tax contribution, but earnings are taxable on withdrawal. Only useful if backdoor is blocked by pro-rata.

§ V

Excess contribution penalty

If you contribute over the limit, the IRS applies a 6% excess contribution penalty per year until corrected. Two ways to fix it: (1) withdraw the excess plus its earnings before the tax filing deadline, or (2) recharacterize the Roth contribution to a Traditional contribution before the deadline. Either fixes the excess and avoids the recurring 6%.