Issue Number: Tax Tip 2026-76Saving for retirement? IRAs are an option Whether retirement is many years away or just around the corner, knowing available savings options is important for taxpayers to plan for their financial future. Individual retirement accounts are just one of the many ways to save, and they also offer tax benefits by letting earnings grow tax deferred. Taxpayers should consider how an IRA may fit into their long-term financial plans. Let’s look at a couple of the most common types of IRAs. Traditional IRA
Roth IRA
Same rules as a traditional IRA, but there are differences:
- Contributions are not deductible and are made with after-tax funds.
- Qualified distributions are tax free.
- There is no required minimum distribution.
2026 contribution limits for traditional and Roth IRAs
For 2026, taxpayers can contribute a total of up to $7,500. Taxpayers who are 50 or older can contribute an additional $1,100, for a total of $8,600. The contribution limit applies to the combined amount contributed to traditional and Roth IRAs and can't exceed the taxpayer’s taxable compensation for the year. More information
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