Saving for retirement through an IRA comes with annual limits, and staying updated on those limits can help you make the most of your contributions. For 2025, the IRS has set new thresholds that determine how much you can put into a Traditional or Roth IRA. These limits depend on factors like your age, income, and filing status.
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In this article, we’ll cover the 2025 IRA contribution limits, catch-up contributions for individuals age 50 or older, and income phase-outs that may affect Roth IRA eligibility. You’ll also find a comparison table showing how the limits have changed from 2024.
Understanding these numbers can help you plan your next move and stay on track with your long-term retirement goals.
📌 Also Read: The Best Roth IRAs for 2025
How Much Can You Contribute to an IRA in 2025?
For 2025, you can contribute up to $7,000 to an IRA if you’re under age 50. If you’re age 50 or older, you can contribute up to $8,000 thanks to the catch-up provision.
These limits apply across all your IRAs combined, both Traditional and Roth. You’re allowed to contribute to both types in the same year, but your total combined contribution can’t exceed the annual limit.
✏️ Hypothetical Example: If you’re under 50 and contribute $6,000 to a Roth IRA, you can only contribute $1,000 more to a Traditional IRA for the year.
📝 Note: The contribution limits did not change from 2024 to 2025.
Income Must Match Your Contribution
You can’t contribute more than your taxable income for the year. If you earn less than the annual limit, your contribution is capped at your earnings.
✏️ Hypothetical Example: If your taxable income is $2,000 in 2025, the most you can contribute to an IRA is $2,000.
Traditional IRA vs Roth IRA Contributions
The tax treatment of your contributions depends on the type of IRA:
- Traditional IRA: Contributions may be tax-deductible. You contribute with pre-tax dollars, and withdrawals in retirement are taxed as ordinary income.
- Roth IRA: Contributions are made with after-tax dollars. Withdrawals in retirement are tax-free, provided certain conditions are met.
✏️ Hypothetical Example: If your taxable income is $50,000 and you contribute $5,000:
- To a Traditional IRA: Your taxable income may be reduced to $45,000 (if you qualify for the deduction).
- To a Roth IRA: Your taxable income remains $50,000 since the contribution isn’t deductible.
Who Can Contribute to an IRA?
Anyone with taxable income can contribute to a traditional or Roth IRA — there are no age restrictions. Even minors can contribute, as long as they have earned income.
However, eligibility rules differ between Traditional and Roth IRAs:
- Traditional IRA: No income limits to contribute, but tax deductions may be reduced or eliminated depending on income and workplace retirement plan coverage.
- Roth IRA: Income limits apply. Your ability to contribute phases out at higher income levels.
2025 Roth IRA Income Limits
For 2025, your ability to contribute to a Roth IRA depends on your modified adjusted gross income (MAGI):
- MAGI of $150,000 or less (single filer): Full contribution allowed
- MAGI between $150,000 and $165,000: Partial contribution allowed
- MAGI over $165,000: Not eligible to contribute
📝 Note: You can calculate MAGI using IRS Publication 590-A.
📌 Also Read: Roth IRA Withdrawal Rules
2025 Traditional IRA Tax Deduction Limits
Even though anyone can contribute to a Traditional IRA, your deduction may be limited if you (or your spouse) are covered by a workplace plan:
- MAGI of $79,000 or less (single filer): Full deduction
- MAGI between $79,000 and $89,000: Partial deduction
- MAGI over $89,000: No deduction
📝 Note: These limits apply only if you’re also participating in a retirement plan at work.
Contribution Limits vs Rollovers
Contribution limits only apply to contributions. There are no limits on rollovers from other retirement accounts, and any rollovers won’t affect your contribution limits.
✏️ Hypothetical Example: If you have $100,000 in your 401k and want to roll it over into your IRA, you could rollover the entire amount and still have the full IRA contribution room left over.
The most common type of IRA rollover is the mega backdoor Roth IRA. If your income is too high to contribute directly to a Roth IRA, you can put money into an after-tax 401k or Solo 401k, then roll it over into a Roth IRA.
An IRA has lower contribution limits compared to other retirement accounts, like a SEP IRA or Solo 401k. If you qualify for a Solo 401k (any self-employment activity with no full-time employees), you can contribute over 10x more per year.
📌 Also Read: Roth IRA vs Traditional IRA
Final Thoughts on 2025 IRA Contribution Limits
Understanding the 2025 IRA contribution limits can help you stay within IRS rules and make informed decisions about how and where to save for retirement. Whether you qualify for a full contribution, a partial deduction, or are affected by income thresholds, it’s important to know where you stand to help you optimize your retirement strategy.
📌 For more guidance on retirement planning, explore our other articles covering Roth IRAs, traditional IRAs, and alternative savings strategies:
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