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An IRA is a retirement account you open yourself, at a bank or brokerage, not through work. Here's how Traditional and Roth IRAs work in 2026, how much you can put in, and how conversions and the "backdoor" Roth work, from the IRS rules.
| Traditional IRA | Roth IRA | |
|---|---|---|
| Tax break | May be deductible now. The deduction can shrink if you or your spouse have a workplace plan (table below). | None now. |
| Taking money out | Taxed as income. | Qualified withdrawals are tax-free: after 5 years and age 59½ (or disability, death, or up to $10,000 for a first home). |
| Income limit to put money in | None. | Cut between $153,000 and $168,000 (single), $242,000 and $252,000 (married filing jointly). |
| Required withdrawals | Yes, starting at age 73. | None while you're alive. |
| Before 59½ | 10% extra tax on most withdrawals, unless an exception applies. | Your own contributions come out first, with no tax. Earnings can be taxed and hit with the 10%. |
Sources: IRS Roth IRAs, Pub. 590-A, Pub. 590-B, IR-2025-111.
If you (or your spouse) have a retirement plan at work, the deduction shrinks inside these income ranges and ends above them. With no workplace plan on either side, it's fully deductible.
| Who | 2026 phase-out range (modified AGI) |
|---|---|
| Single or head of household, covered by a workplace plan | $81,000 to $91,000 |
| Married filing jointly, contributing spouse covered by a workplace plan | $129,000 to $149,000 |
| Not covered, but married (filing jointly) to someone who is covered | $242,000 to $252,000 |
| Married filing separately, covered by a workplace plan | $0 to $10,000 |
Source: IRS IR-2025-111: 2026 401(k) and IRA limits (Nov. 13, 2025).
See what a conversion would add to your 2026 tax.
The IRS doesn't use this name. It means two steps that are each allowed on their own, used when income is above the Roth limit:
This explains how the rules work. It is not a recommendation to do it.
A spouse with little or no pay can still have an IRA if you file a joint return; the limit uses your combined pay (the Kay Bailey Hutchison spousal IRA rule, Pub. 590-A).
| IRS example | IRS says | This page's math |
|---|---|---|
| Pub. 590-A Worksheet 2-2 (2025 rules): single, modified AGI $151,000, $7,000 limit | $6,540 | $6,540 |
| Pub. 590-B Worksheet 1-1, Rose: $2,300 after-tax basis, $20,000 left on Dec. 31, $5,000 converted | $460 tax-free, $4,540 taxable | $460 tax-free, $4,540 taxable |
The Pub. 590-A text calls the result $6,530, but its own filled-in worksheet shows $6,540, which is what the worksheet steps give.
Education only, not investment, tax or legal advice. We show IRS rules and do math on the numbers you type; we don't tell you what to buy or which account to pick. Your plan's own rules (its summary plan description) can be stricter. No company pays to be on this page, and there are no partner links.
$7,500 in total across all your traditional and Roth IRAs, or $8,600 if you're 50 or older, but not more than your taxable pay (IRS IR-2025-111).
The amount you can put in shrinks between $153,000 and $168,000 of modified AGI for single filers and heads of household, and between $242,000 and $252,000 for married couples filing jointly.
No. Conversions made in tax years after 2017 can't be recharacterized back to a traditional IRA (IRS Pub. 590-A).
Estimates, not financial advice. Taxes, insurance, PMI and fees vary by lender, county and city; confirm with your lender, dealer and state agency before acting.