Demland Wealth | IRA Contribution Limits for 2025 & 2026: What You Can Do Before April 15

IRA Contribution Limits for 2025 & 2026: What You Can Do Before April 15

Stewarding money well means saving. It means saving your money for later and it means saving money on taxes.

You can use your money only so many ways: you can spend it on living expenses, you can give it away, you can owe it on debt, you can owe taxes, or you can grow it for later. Taking advantage of tax-qualified retirement savings accounts like IRAs is wise.

2025 Limits & Deadline

For 2025 you can make your Roth or Traditional IRA up until your tax filing deadline (including extensions). If you’re under 50 and have earned income you can contribute up to $7,000 for 2025. If you’re 50 or older you can contribute $8,000.00. If you’re married you only need one earned income and both of you can make your maximum contributions. This flow chart is helpful to see if you qualify for a deductible Traditional IRA contribution:

Can I Make A 2025 Traditional IRA Contribution?

Pay close attention to the income phaseouts for these. If you make too much money or are part of an employer sponsored plan like a 401(k) it changes your limits for deducting a Traditional IRA contribution. I’m a big fan of the Roth IRA and almost always see it as the better option for saving for retirement. You get no deduction in a current year but never pay taxes again on the money if you follow the rules. There are also income limits to making a Roth contribution, but if you are not able for a Roth contribution you may still be able to make a “Back Door” Roth contribution. Here’s a flow chart for 2025 Roth contributions:

Can I Contribute To My Roth IRA For 2025?

2026 Limits & Deadline

It’s not too early to make contributions and save in 2026. In fact, starting early means more time for your contributions to compound which could mean thousands over decades. Contribution limits jumped up a little for 2026 and are $7,500 and $8,600 if you’re 50 or older. The phaseouts have been updated too. See the charts below for reference:

Can I Make A 2026 Traditional IRA Contribution?

Can I Contribute To My Roth IRA For 2026?

We Can Help

Contact us for a personalized calculation. Taking full advantage of these accounts can mean maximizing your savings growth through limiting taxes and tax savings can compound year over year just like investment returns. Make sure you’re growing wisely!

Post Views: 75

Demland Wealth LLC (“DW”) is a registered investment advisor offering advisory services in the State[s] of OH & IN and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training.

This communication is for informational purposes only and is not intended as tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This communication should not be relied upon as the sole factor in an investment making decision.

Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any recommendations made will be profitable or equal the performance noted in this publication.

The information herein is provided “AS IS” and without warranties of any kind either express or implied. To the fullest extent permissible pursuant to applicable laws, Demland Wealth LLC (referred to as “DW”) disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability, non-infringement, and suitability for a particular purpose.

All opinions and estimates constitute DW’s judgement as of the date of this communication and are subject to change without notice. DW does not warrant that the information will be free from error. The information should not be relied upon for purposes of transacting securities or other investments. Your use of the information is at your sole risk. Under no circumstances shall DW be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the information provided herein, even if DW or a DW authorized representative has been advised of the possibility of such damages. Information contained herein should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.