2026 traditional IRA deduction limits
Anyone with taxable compensation can put up to $7,500 in IRAs for 2026 ($8,600 at 50 or older). Whether you can deduct it depends on workplace plan coverage and income.
| Your situation | Full deduction if MAGI is | Partial between | No deduction at or above |
|---|---|---|---|
| Covered at work: single, head of household, or married filing separately and lived apart all year | $81,000 or less | $81,000 – $91,000 | $91,000 |
| Covered at work: married filing jointly or qualifying surviving spouse | $129,000 or less | $129,000 – $149,000 | $149,000 |
| Not covered, but your spouse is (joint return) | $242,000 or less | $242,000 – $252,000 | $252,000 |
| Married filing separately, lived with spouse (you or spouse covered) | — | $0 – $10,000 | $10,000 |
| Neither you nor your spouse covered | Fully deductible at any income | ||
How the partial deduction is figured
Deduction = limit − reduction, but at least $200 if it's above zero
Rounding the reduction down is the same as rounding the deduction up to the next $10. The deduction can't be more than your taxable compensation.
Worked example
A single filer under 50, covered by a 401(k), with modified AGI of $87,333: reduction = 7,500 × 6,333 ÷ 10,000 = $4,749.75, rounded down to $4,740. Deduction = 7,500 − 4,740 = $2,760. The other $4,740 can go in as a nondeductible contribution.
Joint filers where only the spouse has a plan, MAGI $251,950: 7,500 × 9,950 ÷ 10,000 = $7,462.50, rounded down to $7,460, which leaves $40. That's below $200, so the deduction is $200.
Limits of this calculator
- The $7,500 limit is shared with Roth IRAs. If you also put money in a Roth IRA, your traditional limit is lower.
- Modified AGI for this purpose is AGI with some deductions added back. See Publication 590-A, Worksheet 1-1.
- A nondeductible contribution creates basis that you track on Form 8606, so you aren't taxed on it twice.
- The projection holds the contribution and return steady and shows a pre-tax balance. Withdrawals are taxed as income (except basis).
Earning too much for a deduction? A Roth IRA gives no deduction now but tax-free withdrawals later. Not sure which is better? Try the traditional vs Roth calculator.
Sources
- IRS Notice 2025-67 – 2026 IRA limit, catch-up and deduction phase-out ranges
- IRS: 401(k) limit increases to $24,500 for 2026
- 26 U.S.C. 219(g) (deduction phase-out, $10 rounding, $200 minimum) – phase-out formula, $10 rounding, $200 minimum, separate filers living apart, spouse-covered rule
- IRS Publication 590-A – workplace plan coverage, modified AGI and Form 8606