Reduced Roth IRA Contribution 2026: Phase-Out Math

If your income lands inside the Roth IRA phase-out range, you are not shut out. You are allowed a reduced contribution, and the IRS gives an exact formula for it. This guide walks through the 2026 numbers, the formula step by step, and ten worked examples so you can check your own figure before you send money to the account. If you'd rather not do it by hand, the Roth IRA calculator applies the same rules.

The 2026 limits in one place

For 2026 the IRA contribution limit is $7,500, plus a $1,100 catch-up if you are 50 or older by the end of the year, for $8,600 in total. That limit is shared across all your traditional and Roth IRAs, and you can never contribute more than your taxable compensation for the year. The Roth phase-out ranges, based on modified adjusted gross income (MAGI), are: single, head of household, or married filing separately and you did not live with your spouse at any time in the year: $153,000 to $168,000. Married filing jointly or qualifying surviving spouse: $242,000 to $252,000. Married filing separately and you lived with your spouse at any point in the year: $0 to $10,000. Below the bottom of your range you can contribute the full amount; at or above the top you can contribute nothing directly.

What changed from 2025

In 2025 the limit was $7,000 (catch-up $1,000), and the ranges were $150,000 to $165,000 for single filers and $236,000 to $246,000 for joint filers. So a single filer with $160,000 of MAGI who could put in only $2,340 for 2025 can put in $4,000 for 2026: the range moved up $3,000 and the base limit rose $500. If you are still making a 2025 contribution before the April 2026 filing deadline, use the 2025 figures for it.

The formula, step by step

1) Take the top of your range and subtract your MAGI. 2) Divide that by the width of your range: $15,000 for single filers, $10,000 for joint filers and for married filing separately. 3) Multiply by your normal limit ($7,500, or $8,600 if you are 50 or older). 4) Round up to the next $10. 5) If the result is more than $0 but less than $200, your limit is $200. In one line: reduced limit = limit × (top of range − MAGI) ÷ range width, rounded up to the next $10, with a $200 floor. This is the worksheet method in IRS Publication 590-A; it gives the same answer as subtracting your excess income share from the full limit.

Worked examples: single filers under 50

Limit $7,500, range $153,000 to $168,000 (width $15,000). MAGI $150,000: below the range, so the full $7,500. MAGI $155,000: $168,000 − $155,000 = $13,000; $13,000 ÷ $15,000 × $7,500 = $6,500. MAGI $160,000: $8,000 ÷ $15,000 × $7,500 = $4,000. MAGI $165,500: $2,500 ÷ $15,000 × $7,500 = $1,250. MAGI $167,800: $200 ÷ $15,000 × $7,500 = $100, which is under $200, so the floor applies and you may contribute $200. MAGI $168,000 or more: $0 directly.

Worked examples: age 50+ and joint filers

Single, age 50 or older, MAGI $160,000: $8,000 ÷ $15,000 × $8,600 = $4,586.67, rounded up to $4,590. Married filing jointly, both under 50, MAGI $245,000: $252,000 − $245,000 = $7,000; $7,000 ÷ $10,000 × $7,500 = $5,250 each. Joint, MAGI $250,500: $1,500 ÷ $10,000 × $7,500 = $1,125, rounded up to $1,130 each. Joint, one spouse 50 or older, MAGI $248,000: that spouse's limit is $4,000 ÷ $10,000 × $8,600 = $3,440, and the younger spouse's is $3,000. Each spouse runs the formula on the couple's joint MAGI with their own limit, and a non-working spouse can still contribute through a spousal IRA as long as the couple's combined compensation covers both contributions.

The married-filing-separately trap

If you file separately and lived with your spouse at any time during the year, your range is $0 to $10,000. With $4,000 of MAGI you could contribute $6,000 ÷ $10,000 × $7,500 = $4,500, but almost anyone with a full-time job is above $10,000 and gets $0. This is the most common reason people who switch to separate returns (often for student-loan repayment plans) end up with an excess Roth contribution.

Working out your MAGI

For Roth purposes, MAGI starts with your adjusted gross income from Form 1040 and adds back a few items, such as excluded foreign earned income and foreign housing, and deductible traditional IRA contributions. It does not include income from converting a traditional IRA to a Roth. Contributions to a 401(k) or 403(b) through payroll already reduce the wages on your W-2, so they lower your MAGI. That gives you a lever: raising your 401(k) contribution by $5,000 lowers a single filer's MAGI from $160,000 to $155,000 and raises the Roth limit from $4,000 to $6,500.

If you already contributed too much

An excess contribution costs a 6% excise tax for each year it stays in the account. You have three clean fixes. First, withdraw the excess plus the earnings on it before your tax filing deadline, including extensions; the earnings are taxable that year, but the 6% does not apply. Second, recharacterize the contribution as a traditional IRA contribution by the same deadline, so it is treated as if it had gone to the traditional IRA from the start. Third, if you notice later, apply the excess toward the next year's limit; the 6% still applies for each year it sat there as an excess. Your IRA custodian has a form for each of these, so ask for a 'removal of excess' or a 'recharacterization'.

Above the range: the backdoor Roth

If your MAGI is above the top of the range, you can contribute to a traditional IRA (there is no income limit on making non-deductible contributions) and then convert it to a Roth. The catch is the pro-rata rule: if you hold other pre-tax IRA money, including SEP and SIMPLE IRAs, part of the conversion is taxable in proportion to that money. With $0 in other pre-tax IRAs, converting a $7,500 non-deductible contribution is essentially tax-free apart from any small gain. With $67,500 of pre-tax IRA money, 90% of the conversion ($6,750) is taxable. Report it on Form 8606. The Roth conversion calculator shows the tax on a conversion.

Timing tips

You can make your 2026 contribution from January 1, 2026 until the April 15, 2027 filing deadline. If your income is hard to predict (bonuses, side income, a year with a big capital gain), waiting until you know your MAGI avoids excess contributions. If you would rather invest early, contribute the amount you are confident about and top it up once your tax return is done. Not sure Roth is the right account at all? Compare both in the traditional vs Roth IRA calculator.

Quick checklist

Find your filing status and range. Estimate MAGI, including bonuses and side income. Run the formula, or use the Roth IRA calculator. Make sure the total across all your IRAs stays within your limit and your earned income. Keep a note of the figure with your tax papers. If you overshoot, fix it before the filing deadline.