Traditional IRA: Deduction Limits and Required Distributions
The deduction is the point, and it is the thing most likely to be phased out.
At a glance
Figures checked 1 Sep 2026
What to take away
- The $7,500 limit for 2026 is shared across all your IRAs, traditional and Roth combined.
- Deductibility phases out by income if you or your spouse are covered by a workplace plan.
- Required minimum distributions begin in your 70s and are taxed as ordinary income.
A traditional IRA gives a deduction now and taxes withdrawals later. Anyone with earned income can contribute; whether the contribution is deductible depends on income and workplace plan coverage.
Non-deductible contributions
If your income is too high for a deduction, you can still contribute on a non-deductible basis and track the basis on Form 8606. That basis is the starting point for a backdoor Roth conversion, and failing to file the form is the most common error in the whole process.
Required minimum distributions
Traditional IRAs require withdrawals to begin at the age set in current law, and the amount is calculated from your balance and an IRS life expectancy factor. Missing one carries a penalty, though it is reduced if corrected promptly.
Roth IRAs have no RMD for the original owner. That asymmetry is a real planning advantage late in life.
Common questions
Yes. The contribution is always allowed; only the deduction phases out.
Yes — the federal tax filing deadline for the prior tax year.