Eligibility Rules for IRAs in 2026

The primary eligibility requirement for contributing to any Individual Retirement Account (IRA) is that the individual must have “earned income” or taxable compensation for the year. This includes wages, salaries, commissions, tips, and self-employment income, but generally excludes passive income such as interest, dividends, or rental income. While there is no longer an upper age limit for contributing to a Traditional or Roth IRA—meaning even retirees with a part-time job can participate—the total amount contributed cannot exceed the individual’s earned income for that year.

Traditional IRAs are broadly accessible because there are no income restrictions on who can open or contribute to them. As long as you have qualifying earned income, you can deposit funds into a Traditional IRA regardless of how much money you make or whether you are covered by a retirement plan at work. However, while everyone is “eligible” to contribute, the ability to deduct those contributions from your taxes is limited by your income level and your access to an employer-sponsored plan like a 401(k).

Roth IRAs have much stricter eligibility rules tied directly to your Modified Adjusted Gross Income (MAGI) and filing status. For the 2026 tax year, the ability to contribute to a Roth IRA begins to phase out for single filers with a MAGI of $153,000 and is completely eliminated once income reaches $168,000. For married couples filing jointly, the phase-out range is between $242,000 and $252,000; if a couple’s combined income exceeds $252,000, they are ineligible to make direct contributions to a Roth IRA.

A unique eligibility provision known as a “Spousal IRA” allows a non-working spouse to contribute to their own IRA even if they have no earned income of their own. To be eligible, the couple must file a joint tax return, and the working spouse must have enough earned income to cover the total contributions for both accounts. This rule is particularly beneficial for stay-at-home parents or those taking a career hiatus, as it allows them to continue building a retirement nest egg in their own name using the household’s combined earnings.

Finally, eligibility for “catch-up” contributions is determined solely by age, providing an extra savings boost for those nearing retirement. For 2026, individuals who reach age 50 by the end of the calendar year are eligible to contribute an additional $1,100 beyond the standard $7,500 limit. These catch-up rules apply to both Traditional and Roth IRAs, provided the individual meets the standard earned income and income-threshold requirements for those specific account types.

Source: Internal Revenue Service (IRS) News Release IR-2025-111 and Publication 590-A (Contributions to Individual Retirement Arrangements).