Tom Moore, co-founder of IRA Advantage, breaks down what investors need to know about rising IRA contribution limits in 2026. If you have an IRA, this is the time to check your numbers and make sure you are taking full advantage of your retirement.
Contribution Limits Are Going Up
For 2025, the standard IRA contribution limit was $7,000. In 2026, that limit is going up to $7,500. That extra $500 might not sound like a lot, but over time, it can make a real difference for your retirement savings.
If you’re 50 or older, you get to make a catch-up contribution. Last year, the catch-up was $1,000. In 2026, it rises to $1,100. So if you’re in that age group, you can put a total of $8,600 into your IRA. Tom points out that if you’re not maxing out your contributions, now’s the time to get serious. It’s a simple step that can pay off down the road.
Keep an Eye on Your Emails
Tom warns that a lot of clients in the RMD years don’t check their emails every day, and that’s where custodians send important updates. Most of the information about your IRA, including your required minimum distributions, actually comes through email or online statements.
If you’re over 73 or turning 73 this year, RMDs (Required Minimum Distributions) are coming due. Your custodian will tell you the exact amount, and it’s crucial to pay close attention when they come in. Missing an RMD or taking the wrong amount can cost you, so staying on top of emails and statements is a smart move.
Understanding Required Minimum Distributions (RMDs)
RMDs (Required Minimum Distributions) start at age 73. Your custodian calculates the amount based on your account balance and IRS life expectancy tables. Tom stresses that knowing your RMDs ahead of time lets you plan withdrawals properly and avoid any surprises.
Even if you’re not taking RMDs yet, understanding what’s coming down the road helps with retirement planning. Tom notes that it’s about more than just compliance, it’s about making smart decisions with your money.
Planning Your Contributions
With the new 2026 limits, it’s a good time to look at how much you’re putting into your IRA. For those under 50, the limit is $7,500. For those 50 or older, including the catch-up, the total is $8,600.
Tom encourages investors to take advantage of these limits. Maxing out your contributions allows your money to grow tax-deferred, and that growth can add up over time. He also recommends coordinating contributions with RMDs if you’re in that age group. That way, you stay within the rules while making the most of your retirement savings.
Stay Informed and Take Action
Tom explains the key right now is paying attention. Check your emails, review your custodian statements, and make sure your contributions match the new limits. Being proactive today can save headaches later and help you keep more money in your retirement account.
Contribution limits are rising, and RMDs require attention. Take the time to review your IRA, plan your contributions, and handle your RMDs carefully. If you want guidance on how to make the most of your IRA in 2026, reach out to IRA Advantage today to talk through the process with an IRA expert and get help to make the right moves for your retirement.
The Guys With All The Answers…
David and Thomas Moore, the co-founders of Equity Advantage & IRA Advantage
Whether working through a 1031 Exchange with Equity Advantage, acquiring real estate with an IRA through IRA Advantage or listing investment property through our Post 1031 property listing site, we are here to help Investors get where they want to be. Call them today! 800-475-1031.
