Roth IRA Income Limits 2026: Phase-Out Ranges and What to Do If You Earn Too Much
If you earn too much to contribute directly to a Roth IRA, you have options. Here are the exact 2026 thresholds and what to do at every income level.
2026 Roth IRA Income Limits
| Filing Status | Phase-Out Start | Phase-Out End | Result |
|---|---|---|---|
| Single / Head of Household | $153,000 | $168,000 | Reduced, then $0 |
| Married Filing Jointly | $242,000 | $252,000 | Reduced, then $0 |
| Married Filing Separately | $0 | $10,000 | Reduced, then $0 |
Based on Modified Adjusted Gross Income (MAGI). Below the phase-out start: full $7,500 contribution. Above the phase-out end: $0 direct contribution allowed.
How the Phase-Out Works
If your MAGI falls within the phase-out range, your contribution limit is reduced. The formula:
Reduced limit = $7,500 x [(phase-out end - your MAGI) / phase-out range]
Round up to the nearest $10. Minimum contribution is $200 (if any amount is allowed).
Example: Single filer with $160,000 MAGI
$7,500 x [($168,000 - $160,000) / ($168,000 - $153,000)]
= $7,500 x [$8,000 / $15,000]
= $7,500 x 0.5333
= $4,000 (rounded up to nearest $10)
What Counts as MAGI
Modified Adjusted Gross Income starts with your AGI (line 11 on Form 1040) and adds back certain deductions:
- Student loan interest deduction
- Foreign earned income exclusion
- Foreign housing exclusion or deduction
- Exclusion of bond interest from Form 8815
- Exclusion of employer-provided adoption benefits
For most W-2 employees, MAGI equals AGI. If your only income sources are your salary, investment income, and standard deductions, your MAGI is your AGI.
Not sure what your effective rate is? Calculate your effective tax rate to understand your full tax picture.
Traditional IRA Deduction Phase-Outs (2026)
If you or your spouse has a workplace retirement plan (401(k), 403(b), etc.), the Traditional IRA tax deduction phases out at these income levels:
| Situation | Phase-Out Start | Phase-Out End |
|---|---|---|
| Single, with workplace plan | $79,000 | $89,000 |
| Married, both with workplace plan | $126,000 | $146,000 |
| Married, spouse has plan but you do not | $236,000 | $246,000 |
| Neither spouse has workplace plan | No limit | No limit |
Historical Roth IRA Phase-Out Ranges
| Year | Single Phase-Out | Married Phase-Out |
|---|---|---|
| 2024 | $146K-$161K | $230K-$240K |
| 2025 | $150K-$165K | $236K-$246K |
| 2026 | $153K-$168K | $242K-$252K |
Phase-out ranges are adjusted annually for inflation. The upward trend is consistent.
What to Do If You Earn Too Much
Option 1: Backdoor Roth (recommended)
Contribute $7,500 to a non-deductible Traditional IRA, then immediately convert to Roth. Legal, IRS-sanctioned, and the standard strategy for high earners. No income limit on conversions.
Step-by-step guide →Option 2: Non-deductible Traditional IRA (worse)
You can always contribute to a non-deductible Traditional IRA regardless of income. But this gives you the worst of both worlds: no upfront deduction AND taxable withdrawals. Only the gains are taxed, but you lose the Roth's tax-free growth. The backdoor Roth is almost always better.
Option 3: Max your 401(k) Roth option
If your employer offers a Roth 401(k) option, there is no income limit. You can contribute up to $24,500 (2026) in Roth 401(k) dollars regardless of income. This is completely separate from IRA limits.
Compare 401(k) vs Roth IRA →Excess Contribution Penalty
If you contribute more than allowed (either over the $7,500 limit or over your reduced limit based on income), the IRS charges a 6% penalty per year on the excess amount until it is corrected. To fix it:
- 1. Withdraw the excess contributions plus any earnings before the tax filing deadline (April 15, 2027 for 2026 contributions)
- 2. Or recharacterize the excess as a Traditional IRA contribution before the deadline