Can I contribute to an IRA if I have an employer-sponsored retirement plan?

For 2026, you generally can defer up to $24,500 of your wages into your employer’s retirement plan, plus an extra $8,000 catch-up contribution if you are age 50 or older ($23,500 for 2025, plus $7,500 in catch-up contributions). If you attain age 60, 61, 62, or 63 by the end of the calendar year, your employer may allow you to increase your catch-up limit and contribute up to $11,250.00.

Meanwhile, the IRA maximum annual contribution for 2026 is $7,500 and 2025 is $7,000, plus an extra $1,100 catch-up contribution for 2026 and $1,000 for 2025, if you are eligible. You can contribute to IRAs and a retirement plan for the same year, but your eligibility to deduct a Traditional IRA contribution may be affected by your participation in a retirement plan.

If your employer matches a percentage of your retirement plan contributions, many advisors recommend that you contribute at least enough to earn the full amount of the match before contributing to an IRA. But if you want investment options that are not available in your employer’s retirement plan, saving in an IRA may give you different investment options. IRAs also offer more flexible withdrawal provisions, allowing you to access your money any time you need to, subject to potential taxes and penalties; retirement plan distributions only are allowed upon certain distributable events.