Your situation
Workplace plan coverage
Roth IRA contribution
$7,500
Full contribution allowed
Traditional IRA contribution
$7,500
Contribution allowed
Roth IRA income phaseout range
Your income is below the phaseout range — full Roth contribution allowed.
Key 2026 IRA facts: The $7,500 (or $8,600 if 50+) limit is the combined maximum across all your traditional and Roth IRAs — you cannot contribute the full amount to each account separately. You can contribute to both a Roth and a traditional IRA in the same year, but the total cannot exceed the annual limit. The deadline to contribute for the 2026 tax year is April 15, 2027.
This calculator uses 2026 IRS limits (IRS IR-2025-111, November 13, 2025). MAGI for IRA purposes may differ from your AGI — certain deductions are added back. This calculator does not account for the backdoor Roth IRA strategy, spousal IRA rules, or SEP/SIMPLE IRA limits. Verify your eligibility with a qualified tax professional. Not tax or financial advice.
How the IRA contribution calculator works
This calculator determines two things: how much you can contribute to a Roth IRA based on your income and filing status, and whether your traditional IRA contribution is tax-deductible based on your workplace plan coverage. The 2026 IRA contribution limit is $7,500 for those under 50 and $8,600 for those 50 or older — this is the combined maximum across all your IRAs, not per account.
A worked example
Sarah is 34, single, covered by a 401(k) at work, with a MAGI of $90,000 in 2026.
Sarah's 2026 IRA situation
Roth IRA eligibilityFull — MAGI $90K below $153K phaseout
Max Roth IRA contribution$7,500
Traditional IRA deductibilityPartially deductible (phaseout $81K–$91K)
Best moveContribute full $7,500 to Roth IRA
At $90,000, Sarah is in the traditional IRA deduction phaseout range ($81,000–$91,000 for single filers with a workplace plan). She can still contribute $7,500 to a traditional IRA but only a portion is deductible. Since she qualifies for the full Roth IRA contribution and is below the $153,000 Roth phaseout, her best move is a full Roth IRA contribution — tax-free growth beats a partial deduction for most long-term investors.
Roth IRA vs traditional IRA — which is better?
The classic framework: if you expect to be in a higher tax bracket in retirement than you are today, a Roth IRA is likely better — you pay taxes now at the lower rate and withdrawals are tax-free. If you expect to be in a lower bracket in retirement, a traditional IRA deduction is likely better — you defer taxes now at the higher rate and pay at the lower rate in retirement.
In practice, most younger investors and those early in their careers favor Roth IRAs because: current tax rates tend to be lower than eventual peak earnings rates; tax-free growth over 20–30 years is a significant compounding advantage; and Roth IRAs have no required minimum distributions during the owner's lifetime. If you're unsure, many financial planners suggest contributing to a Roth IRA when eligible — the flexibility of tax-free withdrawals in retirement is valuable regardless of where rates go.
What if your income is too high for a Roth IRA? Investors above the $168,000 (single) or $252,000 (married filing jointly) Roth IRA income limits can use the backdoor Roth IRA strategy: contribute to a traditional IRA (non-deductible at that income level) and then convert it to a Roth IRA. The pro-rata rule can complicate this if you have other pre-tax IRA balances — consult a tax professional if you have existing traditional IRA funds.
Frequently asked questions
Can I contribute to both a Roth and traditional IRA in the same year?
Yes, but the total across both accounts cannot exceed the annual limit ($7,500 under 50, $8,600 if 50 or older for 2026). For example, you could contribute $4,000 to a Roth IRA and $3,500 to a traditional IRA, totaling $7,500. You cannot contribute $7,500 to each.
What is MAGI and how do I calculate it?
MAGI (Modified Adjusted Gross Income) for IRA purposes starts with your AGI (line 11 on Form 1040) and adds back certain deductions — student loan interest, IRA deductions, foreign income exclusions, and others. For most people with straightforward income (W-2 wages, no foreign income), MAGI is very close to or identical to AGI. IRS Publication 590-A has the full calculation worksheet.
What happens if I contribute too much to my IRA?
Excess contributions are subject to a 6% penalty tax for each year the excess amount remains in the account. To avoid the penalty, withdraw the excess contribution (plus any earnings on it) before the tax filing deadline (April 15, 2027 for 2026 contributions, or by your extended deadline if you file an extension). Earnings on the excess must be reported as income in the year the excess was contributed.
Can I contribute to an IRA if I have a 401(k) at work?
Yes — having a 401(k) does not prevent you from contributing to an IRA. However, it does affect whether your traditional IRA contribution is tax-deductible. If you're covered by a workplace plan, your ability to deduct traditional IRA contributions phases out at $81,000–$91,000 (single) and $129,000–$149,000 (married filing jointly) for 2026. Roth IRA contributions are not affected by workplace plan coverage — only by your income.
What is the IRA contribution deadline for 2026?
You can make 2026 IRA contributions anytime from January 1, 2026 through April 15, 2027 (the unextended federal tax filing deadline). Contributing early in the year gives your money more time to grow. If you contribute between January 1 and April 15, 2027, make sure to specify to your IRA custodian which tax year the contribution is for — otherwise it may default to the current year.