Cathleen’s Commentary: 2026 IRA Contribution Limits & Why to Fund Early

It’s the first week of January, so naturally, I’m already here to remind you to fund your IRA.

I’m sure that was number one on your New Year’s resolutions list… right?

No?

Well, it really should be—and here’s why.

5 Reasons to Contribute to Your IRA in 2026

1. Your workplace retirement plan may not be enough.

Even a well funded 401(k) or other qualified retirement plan (QRP) may fall short of supporting the lifestyle you want in retirement.

2. You may get a tax deduction today.

Traditional IRA contributions can reduce your current taxable income (subject to income and work-place retirement plan participation rules).

3. Your earnings could be tax free in retirement.

With a Roth IRA, qualified distributions in retirement are tax free—something future you may truly appreciate.

4. Contribution limits have increased.

For 2026:

  • Maximum IRA contribution (under age 50): $7,500
  • Maximum IRA contribution (age 50 and older): $8,600

Always confirm eligibility and modified adjusted gross income (MAGI) limits.

5. You can double down on your savings.

  • Fully fund your IRA for 2025 (if you haven’t already) and 2026
  • Your spouse may also fully fund an IRA for 2025 (if they haven’t) and 2026

Subject to eligibility and MAGI limits.

Curious about the details?

You’ll find everything you need in my Overview of IRAs for 2026 factsheet.

Go ahead—I know you want to. I promise IRAs can be fun.

(OK, maybe I’m in the minority, but your future financial security is worth it.)

Before you go, I have one last tip and it’s one of my favorite strategies.

“Set it and forget it.”

Automatic contributions from your checking account to your IRA make saving painless. You can set them up annually, quarterly, monthly—or even weekly.

As an example:

  • Contributing weekly if you’re 50 or older is about $166 per week
  • If you’re under 50, it’s roughly $144 per week

Small, consistent steps today can make a meaningful difference tomorrow—and the best time to start is now.

About the Author: Cathleen Davis-Whitmore is the Chief Marketing Officer at Financial Cloud Works, LLC. With a robust 21-year tenure in the financial industry, she has become an Individual Retirement Account (IRA) subject matter expert, offering unparalleled sales and marketing strategies coupled with technical acumen to a diverse clientele including financial advisors, CPAs, and estate planning attorneys.

Return to Captain’s Blog.