The IRS on Thursday announced updates to tax rules for tax year 2026, including new limits for what you can contribute to individual retirement accounts.
You’ll be able to contribute up to $7,500 to traditional and Roth IRAs, a $500 boost from the limit in 2025. Savers age 50 and older can stash an extra $1,100 a year in the form of a catch-up contribution — up from $1,000 in 2025.
If you’re hoping to max out your IRA in 2026, most financial advisors would tell you there’s no wrong way to do it. Investing as much as you can in a tax-advantaged account is almost always considered a win.
But is there an optimal way to do it? Say you got a big December bonus, and you have the full $7,500 sitting in savings. Would you be better off investing it all as soon as the market opens in January, or funding your account throughout the year?
It all depends on your circumstances, experts say.
