Which IRA Am I Eligible For?
Your IRA eligibility can depend on your taxable compensation, filing status, modified adjusted gross income and workplace retirement-plan coverage.
This is not tax advice and is for educational purposes only. Bitcoin Well does not provide tax or investment advice. Speak with a qualified tax professional about how a Bitcoin IRA applies to your situation.
Start with taxable compensation
To make a personal contribution to a Traditional or Roth IRA, you generally need eligible taxable compensation.
Taxable compensation may include wages, salary, commissions, bonuses, tips or eligible self-employment income. Your maximum contribution cannot be more than your taxable compensation for the year.
Am I eligible for a Traditional IRA?
Anyone with eligible taxable compensation may generally contribute to a Traditional IRA.
There is not generally an income limit that prevents you from contributing. However, your income and workplace retirement-plan coverage may limit whether some or all of your contribution is tax-deductible.
Information: Eligibility to contribute and eligibility for a tax deduction are two different questions.
Am I eligible for a Roth IRA?
Roth IRA contribution eligibility is based on your tax filing status and modified adjusted gross income, or MAGI.
For the 2026 tax year:
Filing status | Full contribution generally available | Reduced contribution range | No direct Roth IRA contribution |
|---|---|---|---|
Single or head of household | Less than $153,000 | $153,000 to less than $168,000 | $168,000 or more |
Married filing jointly or qualifying surviving spouse | Less than $242,000 | $242,000 to less than $252,000 | $252,000 or more |
If you are married filing separately and lived with your spouse at any time during the year, a special phase-out range between $0 and $10,000 generally applies.
Information: $153,000 for single filers and $242,000 for married couples filing jointly are where Roth IRA eligibility begins to decrease. They are not the points where eligibility immediately ends.
Even when your income falls within the full-contribution range, your contribution is still limited by:
- The annual IRA contribution limit;
- Your taxable compensation for the year; and
- Contributions already made to your other Traditional and Roth IRAs for the same tax year.
Does “self-directed” change my eligibility?
No. Self-directed describes the account's investment options and administration. It does not create a separate income limit or contribution limit.
A self-directed Traditional IRA generally follows Traditional IRA rules. A self-directed Roth IRA generally follows Roth IRA rules.
What should I review before choosing an IRA?
Review the following before opening or funding an IRA:
- Your tax filing status;
- Your expected MAGI;
- Whether you have eligible taxable compensation;
- Whether you or your spouse are covered by a workplace retirement plan;
- Contributions already made to other IRAs for the same tax year; and
- Whether the money is currently personal money, IRA money or money in a workplace retirement plan.
Bitcoin Well can explain the available IRA process and funding methods. We cannot tell you which IRA is best for your tax situation.
Official IRS resource
For the latest income ranges, review the IRS announcement for 2026 retirement-plan and IRA limits.
Updated on: 02/10/2026
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