IRA Contributions Limits & Deadlines

Not all tax-advantaged accounts, like Individual Retirement Accounts (IRAs), are the same. There are differing deadlines and contribution limits, so it literally pays to know the details for each one. That's why we've compiled a brief overview—to help you understand how they differ.

IRA contribution requirements

Traditional IRAs: To contribute to a Traditional IRA, you must have earned income. If you're a non-earning spouse who files a joint tax return with a working spouse, you’re also eligible to contribute.

The IRS defines earned income for employees as wages, salary, commissions, tips and other taxable pay like bonuses. Untaxed combat pay, military differential pay and taxed alimony are also considered qualifying income. For self-employed individuals, earned income is your net earnings.

Investment and pension income aren’t included. For example, investments that come from securities, rental property or other assets don’t count as earned income. They’re considered unearned income. More examples of unearned income include:

• non-taxable alimony
• child support
• Social Security retirement benefits
• unemployment benefits
• pension income
• prison income

SEP IRAs: To contribute to a SEP IRA, you must be a business owner contributing on behalf of employees or a self-employed contractor earning contract-based income.

Are there contribution limits?

The IRS says you can contribute up to $7,000 to Traditional and Roth IRAs, provided you're under age 50 and you've earned wages at least equal to that amount. If you're 50 or older, you can put in an additional $1,000, for a total maximum of $8,000 combined allowed for Traditional and Roth IRA accounts. If you put money in multiple IRA accounts, the combined total of all contributions to your retirement accounts cannot exceed the limit.

For SEP IRAs, the IRS says, “Contributions an employer can make to an employee's SEP-IRA cannot exceed the lesser of:

1. 25% of the employee's compensation, or
2. $72,000 for 2026 ($70,000 for 2025, $69,000 for 2024 and $64,000 for 2023)"

Is it tax deductible?

Depending on your income, you could be eligible to take a tax deduction on the amount you contribute to your Traditional IRA. For 2026, there are no income limits for deductible contributions by single filers or married people who don’t have a retirement plan at work, and the traditional IRA deduction can be up to 100% of their contribution (up to the $7,500 or $8,600 limit).

Some annual contribution limits do kick in for married couples where one spouse has a retirement plan at work, and one doesn’t. For single taxpayers covered by a workplace retirement plan, the phase-out range is $81,000 to $91,000 in 2026. For 2025, married couples filing jointly who earn $129,000 or less can take a full deduction up to the limit. There’s a partial deduction allowed for those making more than $129,000 but less than $149,000, and no deduction for those making $149,000 or more. For an IRA contributor who isn’t covered by a workplace retirement plan but is married to someone who is, the phase-out range is $242,000 to $252,000. If you’re married filing separately, there’s only a partial deduction allowed, and you must earn less than $10,000.

For SEP IRAs, according to the IRS, “The most you can deduct on your business's tax return for contributions to your employees' SEP IRAs is the lesser of your contributions or 25% of compensation.”

Is there an IRA contribution deadline?

You have until April 15 of the current calendar year to make contributions to a Traditional or Roth IRA account for the previous year. For example, for tax year 2025 IRA contributions, you could have put the money in at any time during 2025 and up until April 15, 2026. If you haven’t contributed up to the limit in the past, you may be allowed to make catch-up contributions down the road. However, be aware that there are limits to catch-up contributions.

For SEP IRAs, employers can make contributions up until the business’s income tax return due date (including extensions) for that year.

Roth IRA contribution limits

For Roth IRAs, you won't get a deduction for your contributions because the earnings grow tax-free upfront—so your tax benefit comes later. But Roth IRA contribution limits depend on your Modified Adjusted Gross Income (MAGI).

MAGI limits

For 2026, Roth IRA contribution eligibility depends on your MAGI and filing status:

Single filers or heads of household:

• Full contribution allowed: MAGI less than $153,000
• Reduced contribution allowed: MAGI between $153,000 and $168,000
• No contribution allowed: MAGI more than $168,000

Married couples filing jointly:

• Full contribution allowed: MAGI less than $242,000
• Reduced contribution allowed: MAGI between $242,000 and $252,000
• No contribution allowed: MAGI more than $252,000

Married filing separately:

• Reduced contribution allowed: MAGI less than $10,000
• No contribution allowed: MAGI more than $10,000

Next steps

As you might expect, there are lots of twists and turns in the tax code, so you should consult your tax advisor to understand how current tax law may affect you. If you’d like help exploring your retirement options, reach out to a Navy Federal Investment Services financial advisor^{Footnote [1]} for a no-cost consultation.