Short Answer
For 2026 you can contribute up to $7,500 to a traditional IRA ($8,600 if age 50 or over), and the contribution is fully deductible if neither you nor your spouse is covered by a workplace retirement plan, no matter your income. If you are an active participant in an employer plan, the deduction phases out under IRC §219(g): single and head of household filers between $81,000 and $91,000 of MAGI, married filing jointly between $129,000 and $149,000. A non-covered spouse married to a covered worker phases out between $242,000 and $252,000. Any contribution you cannot deduct becomes a nondeductible contribution reported on Form 8606.
How This Is Calculated
This calculator applies IRS Notice 2025-67 (announcing 2026 retirement plan COLA limits), the statutory framework in IRC sections 219(b), 219(c), and 219(g), and the reduced-deduction worksheet method in IRS Publication 590-A Worksheet 1-2. The calculation proceeds in five sequential steps. For the full background, see our Traditional IRA Deduction Guide.
Step 1: Determine the Contribution Limit Confirmed
The base contribution limit under IRC section 219(b) for 2026 is $7,500 (was $7,000 for 2025). Workers age 50 and over add a $1,100 catch-up under SECURE 2.0 Act section 108 (was $1,000 for 2025). The combined limit applies across all your traditional and Roth IRAs - you cannot contribute the full limit to each. Your planned contribution is capped at this limit (and, in practice, at your taxable compensation).
Step 2: Test Active-Participant Status Confirmed
Under IRC section 219(g)(5), you are an active participant if you are covered by an employer retirement plan (401(k), 403(b), SEP, SIMPLE, or pension) for any part of the year - shown by a checked box 13 on Form W-2. If neither you nor your spouse is an active participant, the deduction has no income limit and the entire contribution is deductible. The phase-out only applies when there is plan coverage.
Step 3: Determine the MAGI Phase-Out Range Confirmed
If coverage applies, filing status sets the phase-out range. For 2026:
- You covered, Single / HOH / MFS-Apart: $81,000 (full) to $91,000 (zero)
- You covered, MFJ / QSS: $129,000 (full) to $149,000 (zero)
- You covered, MFS-Together: $0 (full) to $10,000 (zero) - statutory, never adjusted
- You not covered, spouse covered, MFJ: $242,000 (full) to $252,000 (zero)
If MAGI is below the lower threshold, the full deduction applies. At or above the upper threshold, the deductible amount is zero. Between them, a reduced amount applies.
Step 4: Calculate the Reduced Deduction Confirmed
Per IRS Pub 590-A Worksheet 1-2, the reduced deduction calculation is:
- Subtract MAGI from the upper threshold of your range
- Divide by the range width ($10,000 for Single/HOH and the spousal range; $20,000 for MFJ-covered; $10,000 for MFS-Together)
- Multiply by your contribution limit ($7,500 + $1,100 if 50+)
- Round up to the next $10
- Apply the $200 floor: if the result is positive but less than $200, allow $200
Step 5: Split Deductible and Nondeductible Confirmed
Your deductible contribution is the smaller of your planned contribution and the deduction limit from Step 4. Any planned contribution above that limit is a nondeductible contribution. You can still make it - there is no income limit on contributing - but it must be reported on Form 8606 to establish basis. The estimated tax saved is the deductible amount multiplied by your marginal federal rate.
The deduction is above-the-line: Under IRC section 62(a)(7), the traditional IRA deduction reduces gross income to reach AGI, so it lowers AGI directly even if you take the standard deduction. A lower AGI can also help other AGI-sensitive items such as the Saver's Credit, education credits, and the net investment income tax threshold. Confirmed
Modified AGI excludes the IRA deduction itself: Under IRC section 219(g)(3), the MAGI used for the phase-out is computed without the traditional IRA deduction you are trying to figure, then adds back student loan interest, the foreign earned income exclusion, excluded savings bond interest, and adoption benefits. See Pub 590-A Worksheet 1-1.
Assumptions
- Tax year 2026 retirement plan limits per IRS Notice 2025-67 (released October 2025); 2025 per Notice 2024-80.
- The MAGI you enter already includes the standard add-backs from Pub 590-A Worksheet 1-1.
- Your planned contribution does not exceed your taxable compensation (the calculator caps it at the annual limit only).
- Reduced deduction amounts are rounded up to the next $10 with a $200 floor per the Pub 590-A worksheet.
- Estimated tax saved is illustrative: it multiplies the deductible amount by your selected marginal rate and ignores state tax, bracket crossover, and secondary phase-outs.
- For MFS, lived-apart-all-year is treated as single (spouse coverage ignored); lived-with-spouse uses the $0-$10,000 range when either spouse is covered.
Frequently Asked Questions
What is the traditional IRA deduction limit for 2026?
For 2026, you can contribute up to $7,500 to a traditional IRA ($8,600 if you are age 50 or over, including the $1,100 catch-up), and the contribution is fully deductible if you are not covered by a workplace retirement plan, regardless of income. If you are covered by an employer plan, the deduction phases out over a modified AGI range that depends on your filing status: $81,000 to $91,000 for single and head of household filers, and $129,000 to $149,000 for married couples filing jointly. The deduction limit cannot exceed your actual contribution or your taxable compensation for the year. Source: IRS Notice 2025-67 and IRC section 219.
What are the 2026 traditional IRA deduction phase-out ranges?
For 2026, if you are an active participant in a workplace retirement plan, your traditional IRA deduction phases out between $81,000 and $91,000 of modified AGI for single and head of household filers, and between $129,000 and $149,000 for married filing jointly. If you are not covered but your spouse is, the deduction phases out between $242,000 and $252,000. A married person filing separately who is covered phases out between $0 and $10,000. If neither you nor your spouse is covered by a workplace plan, there is no income limit and the contribution is fully deductible. For 2025 the covered ranges were $79,000 to $89,000 single, $126,000 to $146,000 MFJ, and $236,000 to $246,000 spousal.
What is the active participant rule under IRC section 219(g)?
You are an active participant if you are covered by an employer-sponsored retirement plan for any part of the year, including a 401(k), 403(b), SEP, SIMPLE, or defined benefit pension. Box 13 of your Form W-2 is checked when you are an active participant. Being an active participant does not stop you from contributing to a traditional IRA, but it triggers the IRC section 219(g) modified AGI phase-out that can reduce or eliminate your deduction. If neither you nor your spouse is an active participant, the full contribution is deductible no matter how high your income is.
What happens to the part of my IRA contribution that is not deductible?
If your income is above the phase-out range or partly inside it, the portion of your contribution that you cannot deduct becomes a nondeductible contribution. You can still make it (there is no income limit on contributing to a traditional IRA), but you must report it on Form 8606 to establish basis. That basis is a record of after-tax money in the IRA, and it lets you withdraw or convert that amount tax-free later under the pro-rata rule of IRC section 408(d). Failing to file Form 8606 can cause that money to be taxed twice.
Can I still deduct a traditional IRA if I have a 401(k)?
Yes, but only if your modified AGI is below or inside the active-participant phase-out range. Having a 401(k) makes you an active participant, so the IRC section 219(g) phase-out applies. For 2026 a single filer covered by a 401(k) gets a full deduction below $81,000 of MAGI, a partial deduction between $81,000 and $91,000, and no deduction above $91,000. Above the range you can still contribute, but the contribution is nondeductible and reported on Form 8606. Many high earners in this situation use a backdoor Roth IRA instead.
Is there an age limit on deducting traditional IRA contributions?
No. The SECURE Act of 2019 repealed the old rule that barred traditional IRA contributions and deductions after age 70 and a half, effective for 2020 and later years. You can now contribute to and deduct a traditional IRA at any age, as long as you have taxable compensation (earned income such as wages or self-employment income). Investment income, Social Security, and pension income do not count as compensation for this purpose.
What counts as modified AGI for the IRA deduction?
Modified AGI for the traditional IRA deduction (IRC section 219(g)(3)) is your adjusted gross income figured without the IRA deduction itself, plus several add-backs: the student loan interest deduction, the foreign earned income and housing exclusions and deductions, the excluded savings bond interest, and the excluded employer adoption assistance. It does not add back the IRA deduction you are trying to compute. Most taxpayers without these specific items have a modified AGI close to their AGI. See IRS Publication 590-A Worksheet 1-1.
What is the spousal IRA rule for the deduction?
Under the Kay Bailey Hutchison Spousal IRA rule (IRC section 219(c)), a married couple filing jointly can fund a traditional IRA for a spouse with little or no compensation, using the working spouse's earnings, up to the full limit for each spouse. The combined contributions cannot exceed the couple's joint taxable compensation. The deduction for each spouse is then tested separately under section 219(g): a non-covered spouse married to a covered worker uses the higher $242,000 to $252,000 phase-out for 2026, while the covered spouse uses the $129,000 to $149,000 range.
When is the deadline to make a deductible IRA contribution?
You can make a traditional IRA contribution for a tax year up to the unextended due date of your return for that year, which is generally April 15 of the following year. For the 2025 tax year the deadline is April 15, 2026, and for the 2026 tax year it is April 15, 2027. Filing an extension does not extend the IRA contribution deadline. A contribution made between January 1 and the April deadline must be designated for the correct year with the custodian.
Should I choose a deductible traditional IRA or a Roth IRA?
A deductible traditional IRA gives you a tax break now and is taxed on withdrawal, which favors people who expect a lower tax rate in retirement. A Roth IRA gives no deduction now but is tax-free in retirement and has no lifetime required minimum distributions, which favors people who expect the same or a higher rate later. If you are covered by a workplace plan and your income is above the traditional deduction phase-out, the traditional contribution is nondeductible, so a Roth IRA (or a backdoor Roth) is usually the better choice because at least the growth is tax-free.
What To Do Next
If You Are Not Covered by a Workplace Plan
Your contribution is fully deductible regardless of income. Contribute as early in the year as possible to capture more tax-deferred growth, and set up an automatic transfer of $625 per month ($7,500 / 12) or $717 if 50 or over. Confirm you have at least that much taxable compensation.
If You Are Covered and Above the Phase-Out
Your traditional contribution is nondeductible, so a Roth IRA usually wins. Check your direct Roth eligibility in the Roth IRA Contribution Calculator, and if you are over the Roth limit too, model a backdoor Roth (watching the pro-rata rule and any prior Form 8606 basis).
If You Also Have a Workplace Plan
Capture the employer match first. Compare your 401(k) deferral and match math in the 401(k) Contribution Calculator; the IRA and 401(k) limits run in parallel, so funding both maximizes tax-advantaged savings.
If You Are Self-Employed
A SEP-IRA or Solo 401(k) usually allows much larger contributions than a traditional IRA. Compare the limits in the SEP IRA vs Solo 401(k) Calculator, then layer a traditional or Roth IRA on top.
For the Full Background
Read the Traditional IRA Deduction Guide for the active-participant rule, the MAGI worksheet, Form 8606 basis mechanics, the spousal rule, and the traditional-vs-Roth decision in depth.