IRA Contribution Limits 2025
The 2025 IRA contribution limit is $7,000 ($8,000 if age 50+) — unchanged from 2024. However, Roth IRA income limits increased: the phase-out now starts at $150,000 for single filers and $236,000 for married filing jointly.
2025 vs 2024 IRS IRA Limits
| Limit | 2024 | 2025 | Change |
|---|---|---|---|
| Contribution Limit (All ages) | $7,000 | $7,000 | — |
| Catch-Up Contribution (Age 50+) | $1,000 | $1,000 | — |
| Total Limit (Age 50+) | $8,000 | $8,000 | — |
| Roth Phase-Out Start (Single) | $146,000 | $150,000 | +$4,000 |
| Roth Phase-Out End (Single) | $161,000 | $165,000 | +$4,000 |
| Roth Phase-Out Start (MFJ) | $230,000 | $236,000 | +$6,000 |
| Roth Phase-Out End (MFJ) | $240,000 | $246,000 | +$6,000 |
| Trad. IRA Deduction Phase-Out (Single, workplace plan) | $77K-$87K | $79K-$89K | +$2,000 |
💡 Over the Income Limit? Use the Backdoor Roth IRA
If your income exceeds $165,000 (single) or $246,000 (married), you can't contribute directly to a Roth IRA. But you can still use the Backdoor Roth: contribute to a non-deductible Traditional IRA → then immediately convert it to Roth. This is 100% legal and widely used by high earners. Beware the pro-rata rule if you have existing Traditional IRA balances.
Frequently Asked Questions
What is the IRA contribution limit for 2025?▼
For 2025, the annual IRA contribution limit is $7,000 for both Traditional and Roth IRAs combined. If you are age 50 or older, you can contribute an additional $1,000 catch-up contribution, for a total of $8,000. This limit is shared across all your IRAs — for example, you could contribute $4,000 to a Traditional IRA and $3,000 to a Roth IRA in the same year. Source: IRS Publication 590-A.
What are the Roth IRA income limits for 2025?▼
For 2025, the Roth IRA phase-out begins at $150,000 MAGI for single filers and $236,000 for married filing jointly. Above $165,000 (single) or $246,000 (married), you cannot contribute directly to a Roth IRA. If you earn above these limits, consider the Backdoor Roth IRA strategy: contribute to a non-deductible Traditional IRA and then convert it to Roth.
Can I deduct my Traditional IRA contribution in 2025?▼
If you or your spouse are covered by a workplace retirement plan (like a 401k), your Traditional IRA deduction phases out. For 2025, the phase-out for single filers covered by a workplace plan is $79,000-$89,000 MAGI. For married filing jointly where the contributor is covered: $126,000-$146,000. If not covered by a workplace plan, you can deduct the full $7,000 regardless of income.
What is a Backdoor Roth IRA and who should use it?▼
The Backdoor Roth IRA is a legal tax strategy for high earners who exceed the Roth IRA income limits. You contribute to a Traditional IRA (no income limit for non-deductible contributions), then convert it to a Roth IRA. The conversion is taxable only on pre-tax amounts. Beware of the pro-rata rule: if you have existing pre-tax Traditional IRA balances, the conversion will be partially taxable.
Roth IRA vs Traditional IRA — which is better in 2025?▼
Choose Roth IRA if: you're in a low tax bracket now, you're young with decades of tax-free growth ahead, or you expect tax rates to rise. Choose Traditional IRA if: you're in a high bracket now and expect to be in a lower bracket in retirement, or you need the current deduction. A key Roth advantage: no Required Minimum Distributions (RMDs) during the owner's lifetime, making it excellent for estate planning.
Should you use a Roth IRA or 401(k)? Get your personalised answer.
Use the Free 401k vs Roth Calculator →Source: IRS Publication 590-A, IRS Notice 2024-80. For educational purposes only. Not financial advice.