2026 IRA contribution limit is $7,500 per year for most savers.

The IRS announced a $7,500 annual IRA contribution limit for 2026. Putting that amount into an S&P 500 index fund from age 27 to 67 could grow to about $1.38 million, while a 60/40 stocks-and-bonds mix could yield roughly $882,000.

The IRS has set the 2026 individual retirement account (IRA) contribution limit at $7,500 per year. People aged 50 and older can add a $1,100 catch-up contribution. Reporters examined how much a saver might accumulate by contributing $7,500 each year from age 27 to 67. The estimates use historical inflation-adjusted returns and do not include fees or tax differences. What was announced: - 2026 IRA contribution limit is $7,500 per year; catch-up contribution for those 50+ is $1,100. - The example assumes contributing $7,500 annually from age 27 until age 67, with no increases to the limit. - Investing only in an S&P 500 index fund at a historical real return of 6.69% could grow the savings to about $1.38 million by age 67. - A 60/40 U.S. stocks/bonds portfolio, at a historical real return of 4.89%, would produce about $882,000 over the same period. - These calculations assume a Roth IRA framework, exclude fees and expense ratios, and note that past returns may not predict future results. Summary: The numbers illustrate how regular annual contributions at the 2026 limit could compound over 40 years, with higher historical returns for an equity-heavy allocation and lower but steadier results for a balanced portfolio. Undetermined at this time.