On November 1, 2024, the IRS unveiled the Roth IRA contribution limits for 2025. While the contribution amounts have remained the same as in 2024, there’s good news: the income limits have been adjusted, allowing more individuals to qualify for this valuable retirement savings vehicle.
Whether you’re a regular investor or nearing retirement, these new income thresholds can impact your retirement savings strategy.
2025 Roth IRA Contribution Limits
For 2025, the maximum contribution limit to a Roth IRA is $7,000 for individuals under 50. If you’re 50 or older, you’re eligible for an additional $1,000 catch-up contribution, allowing you to invest up to $8,000. It’s important to note that the total contribution across both Traditional and Roth IRAs cannot exceed these limits per person.
Income Limits for Roth IRA Contributions in 2025
In 2025, the IRS has adjusted the income limits to make Roth IRA eligibility accessible to a broader range of taxpayers. The contribution phase-out range for single filers is now between $150,000 and $165,000, while for married couples filing jointly, the phase-out starts at $230,000 and phases out completely at $246,000.
This means that if your Modified Adjusted Gross Income (MAGI) falls within these ranges, you may still be eligible to contribute a reduced amount to your Roth IRA.
Comparison of Roth IRA Income Limits for 2024 vs. 2025
Here’s a comparison table for a clear overview of Roth IRA contribution limits and income thresholds:
| Year | Tax-Filing Status | Income Limit for Full Contribution | Phase-Out Range | Income Limit for No Contribution |
|---|---|---|---|---|
| 2024 | Single/Head of Household | $146,000 | $146,000 – $161,000 | Above $161,000 |
| 2025 | Single/Head of Household | $150,000 | $150,000 – $165,000 | Above $165,000 |
| 2024 | Married Filing Jointly | $230,000 | $230,000 – $240,000 | Above $240,000 |
| 2025 | Married Filing Jointly | $230,000 | $230,000 – $246,000 | Above $246,000 |
Planning for 2025 Contributions
With the income limit adjustments, now is a great time to evaluate your Roth IRA eligibility. Higher income thresholds mean more individuals will qualify for full or partial contributions. Additionally, contributing up to the maximum amount can provide valuable tax-free growth over time, making Roth IRAs an attractive option for retirement savings.
Key Takeaways for Roth IRA Savers
- Contribution Limits Remain: Limits stay at $7,000 for those under 50 and $8,000 for those 50+ with the catch-up option.
- Income Limits Increase: Higher income limits open up eligibility for more taxpayers.
- Tax-Free Growth: Roth IRAs offer tax-free growth, making them a beneficial choice for retirement savers focused on long-term growth.
FAQs
What are the Roth IRA contribution limits for 2025?
The 2025 contribution limit is $7,000 for individuals under 50, with a catch-up limit of $8,000 for those 50 and older.
Have income limits for Roth IRA contributions changed for 2025?
Yes, the income limits have increased. Single filers can contribute fully if their income is below $150,000, with phase-out up to $165,000. For married filers, the full contribution limit applies to incomes up to $230,000, with phase-out ending at $246,000.
Can I contribute to both a Roth IRA and Traditional IRA in 2025?
Yes, but the total combined contribution across both accounts cannot exceed $7,000 (or $8,000 if you’re 50 or older).
What happens if my income exceeds the Roth IRA limits in 2025?
If your income exceeds the limit, you can explore a backdoor Roth IRA conversion, which allows high-income earners to contribute indirectly.
Is the contribution limit expected to increase after 2025?
The IRS typically adjusts contribution limits periodically based on inflation, so limits may change in future years.
