Written by the TaxPlain Editorial Team · Reviewed for accuracy · Last updated August 2026
⚠️ Educational only. TaxPlain does not provide tax, legal, or financial advice. Always consult a qualified tax professional about your specific situation.
What this is
A Roth IRA is a retirement account you fund with money you've already paid tax on. Because the government has already taken its cut, your contributions grow tax-free, and qualified withdrawals in retirement — both the money you put in and everything it earned — come out tax-free too.
That's the opposite setup from a 401(k) or a Traditional IRA, where contributions are often tax-deductible now, but every withdrawal in retirement gets taxed as ordinary income. Neither structure is universally "better" — it depends on whether you expect to pay a higher or lower tax rate later than you do today.
Roth IRAs also come with a feature most retirement accounts don't have: no required minimum distributions during your lifetime. You can leave the money growing tax-free for as long as you want.
Who it affects
✓ Applies to
Anyone with earned income who wants tax-free retirement withdrawals and is under the 2026 income phase-out thresholds.
↑ Also applies to
High earners over the direct-contribution limit who use a backdoor Roth conversion instead.
📅 2026 CONTRIBUTION DEADLINE
You can contribute to a Roth IRA for a given tax year up until the regular filing deadline the following spring — not December 31st. For 2026 contributions, that means you generally have until mid-April 2027 to fund the account.
Roth vs. Traditional IRA
Which type of IRA is this?
This is the single most-searched question around Roth IRAs, and the answer comes down to when you pay tax.
Roth IRA — contributions are after-tax (no deduction now), qualified withdrawals in retirement are 100% tax-free.
Traditional IRA — contributions may be tax-deductible now, but withdrawals in retirement are taxed as ordinary income.
Roth tends to favor people who expect to be in a higher tax bracket in retirement than they are today — often younger workers early in their careers.
Traditional tends to favor people who want the deduction now and expect a lower tax bracket later.
Both share the same combined annual contribution limit — you don't get a separate limit for each account.
Only Roth IRAs have income limits on direct contributions. Traditional IRA contributions are open to anyone with earned income, though the deduction itself can phase out if you're covered by a workplace plan.
2026 income limits
Roth IRA income phase-out ranges
Your eligibility to contribute directly to a Roth IRA is based on your Modified Adjusted Gross Income (MAGI) — not your gross pay, and not your AGI alone. Per IRS Rev. Proc. 2025-32, the 2026 phase-out ranges are:
Single / Head of Household
Full contribution below $153,000 MAGI. Phases out between $153,000 and $168,000. No direct contribution above $168,000.
Married Filing Jointly
Full contribution below $242,000 MAGI. Phases out between $242,000 and $252,000. No direct contribution above $252,000.
Married filing separately is treated differently: if you lived with your spouse at any point in the year, the phase-out range is a narrow $0 to $10,000 and is not adjusted for inflation. If you're over these thresholds, you're not shut out of a Roth entirely — that's where the backdoor Roth comes in.
2026 contribution limits
How much can you contribute?
For 2026, the Roth IRA contribution limit is $7,500, or $8,600 if you're age 50 or older (a $1,100 catch-up contribution). This limit is shared across all your IRAs combined — Roth and Traditional together, not $7,500 for each account separately.
You also can't contribute more than you actually earned in wages, self-employment income, or other qualifying compensation for the year. If your earned income was only $4,000, that's your ceiling regardless of the IRS limit. Investment income, rental income, and pension income don't count as earned income for this purpose.
Related forms often involved
Roth IRAs are relatively simple accounts, but a few forms tend to come up around contributions, conversions, and reporting.
Form 5498 — issued by your IRA custodian showing contributions made for the year.
Form 8606 — required if you make a nondeductible Traditional IRA contribution as part of a backdoor Roth, so the IRS knows that portion isn't taxed again on conversion.
Form 1099-R — issued if you take a distribution or complete a Roth conversion, even if none of it ends up taxable.
Common mistakes to avoid
⚠️ MISSING THE PRO-RATA RULE
A backdoor Roth (contributing to a nondeductible Traditional IRA, then converting it to Roth) is legal, but if you hold other pre-tax IRA money anywhere, the pro-rata rule can make part of the conversion taxable — a surprise many people don't see coming.
⚠️ CONFUSING MAGI WITH GROSS INCOME
Roth eligibility is based on MAGI, not your salary or your AGI alone. Someone can be well under a headline salary threshold in conversation but still phase out once MAGI addbacks are applied.
What to do right now
Check your 2026 MAGI against the phase-out range for your filing status before assuming you can — or can't — contribute directly. If you're over the limit, ask a tax professional whether a backdoor Roth makes sense given any other pre-tax IRA balances you hold, since the MAGI calculation and the pro-rata rule both affect the outcome.
Questions to ask your tax professional
01Based on my MAGI, am I eligible for a full, partial, or no direct Roth contribution this year?
02Do I have other pre-tax IRA balances that would trigger the pro-rata rule on a backdoor Roth?
03Given my expected tax bracket in retirement, does Roth or Traditional make more sense for me?
04Should I split my contribution between Roth and Traditional instead of choosing one?
05Do I need to file Form 8606 for any contributions or conversions this year?
Frequently asked questions
What's the difference between a Roth IRA and a Traditional IRA?
A Roth IRA is funded with after-tax dollars, so qualified withdrawals in retirement are tax-free. A Traditional IRA is funded with pre-tax (often deductible) dollars, so withdrawals in retirement are taxed as ordinary income. The core trade-off is paying tax now (Roth) versus paying tax later (Traditional).
What is the Roth IRA income limit for 2026?
For 2026, your ability to contribute directly to a Roth IRA phases out between $153,000 and $168,000 of MAGI for single filers and heads of household, and between $242,000 and $252,000 for married couples filing jointly, per IRS Rev. Proc. 2025-32.
What is the Roth IRA contribution limit for 2026?
For 2026, the Roth IRA contribution limit is $7,500, or $8,600 if you're age 50 or older. This limit is shared across all your IRAs — Roth and Traditional combined, not $7,500 for each.
What is a backdoor Roth IRA?
A backdoor Roth is a two-step workaround for high earners who are phased out of direct Roth contributions: you contribute to a nondeductible Traditional IRA, then convert that balance to a Roth IRA. It's legal, but the pro-rata rule can create an unexpected tax bill if you hold other pre-tax IRA money.
Does my income for Roth IRA limits mean my gross income?
No. Roth IRA eligibility is based on your Modified Adjusted Gross Income (MAGI), not your gross pay or your Adjusted Gross Income (AGI) alone. MAGI adds back certain deductions to AGI, so it's usually a little higher than the AGI on your Form 1040.