I am a 20-year veteran — seven years Marine Corps, thirteen Army, retired Sergeant First Class. I
spent two years helping Soldiers transition out at Fort Riley. I bring the truth, simple and to the
point. I have nothing left in this world than my word. What follows is the IRS's own 2026 numbers,
put in plain language.
2026 Limits
What You Can Put In This Year
- Under age 50: up to $7,500 for the year — about $625 a month if you spread it out.
- Age 50 or older: up to $8,600 for the year — about $717 a month. That $8,600 already
includes a $1,100 "catch-up" contribution the IRS allows once you turn 50.
- This is one combined limit for the year, not one limit per account. Split it between a
Traditional IRA and a Roth IRA however you want — the two accounts together still cannot go
over $7,500 (or $8,600).
Watch the total. Go over the limit and the IRS charges a 6% excise tax — an extra tax,
on top of what you already owe — on the excess amount, for every year it stays in the account.
Add up every IRA you own before you assume you're under the line.
★ One number, split however you want.
Who Can Contribute
You Need "Compensation" — Here's What Counts
Compensation means wages, salary, or self-employment income — money you worked for.
Military retired pay, VA disability compensation, pensions, annuities, and interest or dividend
income do NOT count as compensation for IRA purposes. If retired pay and VA compensation are
your only income for the year, you do not have compensation to fund an IRA with that money —
putting it in anyway can trigger that 6% excise tax above, every year until it's fixed.
The door isn't fully closed:
- Combat pay counts. If your only pay for the year was tax-free combat pay, it still
counts as compensation for IRA purposes (it shows on your W-2, box 12, code Q). You can still
fund an IRA with it.
- Spousal IRA. If you file taxes jointly and your spouse has little or no income of
their own — common after a PCS move — your spouse can still contribute up to the full
limit, based on your combined compensation. This is called a Kay Bailey Hutchison Spousal IRA.
- No age limit. If you have compensation, there is no upper age limit on contributing to
a Traditional or Roth IRA.
★ Ask what counts before you put money in.
Traditional or Roth
Two Kinds, Different Tax Timing
- Traditional IRA: you may get a tax deduction the year you contribute, depending on your
income and whether you (or your spouse) are covered by a retirement plan at work. For 2026, if
you're covered by a workplace plan, that deduction phases out between $81,000 and $91,000 (single
or head of household), or $129,000 and $149,000 (married filing jointly, and you're the one
covered). If you're not covered but your spouse is, it phases out between $242,000 and $252,000.
Married filing separately: $0 to $10,000. Traditional IRAs also come with required minimum
distributions later in retirement — a mandatory withdrawal each year once you reach a certain
age. That age has changed in recent years, so check irs.gov for the current number rather than an
old flyer.
- Roth IRA: you put in after-tax dollars — money you already paid tax on — and
qualified withdrawals in retirement are tax-free. No required minimum distributions during your
lifetime; you can leave it to grow. Your income can shut the door on contributing directly: for
2026 that starts at $153,000 and closes fully at $168,000 (single or head of household), or
$242,000 to $252,000 (married filing jointly), or $0 to $10,000 (married filing separately) —
based on your modified adjusted gross income, a specific measure of your income the IRS uses for
this test. If you're in that range, talk with a tax professional about your options.
Pulling money out of either account before you turn 59½ generally costs an extra 10% tax on
top of what you already owe, with some exceptions. Know that before you lock money away.
★ Know which bucket, and know the exit rules.
The Deadline
When Your 2026 Window Closes
Your deadline to contribute for the 2026 tax year is your tax return filing deadline
— not including extensions.
Filing an extension on your taxes does NOT give you more time to fund your IRA for that year.
The two deadlines are separate.
Exception for combat zone service: if you served in a designated combat zone, or in direct
support of one, your IRA contribution deadline moves with your extended filing deadline —
generally 180 days after you leave the combat zone, plus however many days were left before the
filing deadline when you entered it. A federally declared disaster can also push the date. Check
with a tax professional or irs.gov if either applies to you.
★ Extension on your taxes does not mean extension on your IRA — unless you served in a combat zone.
Don't Forget the TSP
Your IRA Limit Is a Separate Bucket
The $7,500 (or $8,600) IRA limit above has nothing to do with the Thrift Savings
Plan.
- The 2026 elective deferral limit for the TSP is $24,500.
- You can max out your TSP contributions and still fund an IRA on top of it, in the same year.
★ Two accounts, two limits — you can use both.
This is general information for the 2026 tax year, not tax advice. Limits and income ranges are set by
the IRS and change almost every year — before you contribute, check the current numbers at
irs.gov
or talk with a tax professional.