An IRA — Individual Retirement Account — is one of the most flexible tools available for retirement savings. But the rules around who can contribute, how much, and to which type of account depend on a few key factors that are worth understanding before you open one.
The basic requirement: earned income
To contribute to any IRA, you generally need to have earned income. Earned income includes wages, salaries, self-employment income, and tips. It does not include investment income, rental income, pension payments, or Social Security benefits.
You can contribute up to the amount you earned during the year, or the annual IRA limit, whichever is lower. For 2026, the standard contribution limit is $7,500, with an additional $1,100 catch-up contribution available if you are 50 or older.
Spousal IRA: an important exception
If you are married and your spouse has earned income but you do not, you may still be able to contribute to an IRA in your own name. This is sometimes called a spousal IRA. The contributing spouse’s income must be at least equal to the total contributions made to both accounts combined.
Who can contribute to a Roth IRA?
Roth IRA eligibility depends on your income. For 2026, the ability to contribute to a Roth IRA begins to phase out at the following modified adjusted gross income (MAGI) levels:
- Single filers: Phase-out begins at $153,000, with no contributions allowed above $168,000
- Married filing jointly: Phase-out begins at $242,000, with no contributions allowed above $252,000
If your income falls within the phase-out range, you can contribute a reduced amount. If you are above the upper limit, you cannot contribute to a Roth IRA directly — though a strategy called a backdoor Roth IRA may be available to you.
Who can contribute to a Traditional IRA?
Anyone with earned income can contribute to a Traditional IRA, regardless of how much they earn. There is no income cap for contributions. However, the ability to deduct those contributions on your tax return does phase out at higher income levels if you or your spouse are also covered by a workplace retirement plan.
Even if you cannot deduct your Traditional IRA contributions, making non-deductible contributions can still make sense in some situations — particularly if you are planning a Roth conversion later.
Is there an age limit for IRA contributions?
No. Since the SECURE Act, there is no age limit for contributing to a Traditional IRA as long as you have earned income. Previously, contributions were not allowed past age 70½, but that restriction no longer applies.
Roth IRAs have never had an age restriction on contributions.
Can you have both a 401(k) and an IRA?
Yes. Having a workplace 401(k) does not prevent you from also contributing to an IRA. The accounts have separate contribution limits. Contributing to both can be a powerful way to build tax-diversified retirement savings — particularly when a Roth IRA is used alongside a pre-tax 401(k).
The decision about how to prioritise contributions across accounts depends on your income, tax situation, and retirement timeline.
