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The suspense is finally over. On Nov. 1, the IRS released the 2025 contribution limits for retirement accounts, including Roth IRAs. Now is the perfect time to plan ahead and set yourself up to crush your Roth IRA goals in 2025 and beyond.
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2025 Roth IRA contribution limits
For 2025, the Roth IRA contribution limit holds steady at the same level as 2024. If you qualify, you can stash away up to $7,000 in your Roth IRA for the year. And if you’re 50 or older, you get the bonus of an extra $1,000 in catch-up contributions, bringing your total to $8,000.
Keep in mind that the total contribution to both a traditional IRA and a Roth IRA for 2025 cannot exceed $7,000 if you’re under 50. For example, if you contribute $5,000 to a Roth IRA, the most you could contribute to a traditional IRA would be $2,000 in 2025 if you’re under 50. IRA limits apply per person, not per account.
Also, remember that you can’t contribute more than your earned income for the year. So, if you earned $4,000 for the year, your maximum contribution would be capped at $4,000.
Roth IRA income limits are increasing in 2025
Even though the Roth IRA contribution limits are staying put for 2025, the income limits are shifting up. If your tax-filing status is head of household, you’ll now be able to contribute the full amount to a Roth IRA if your income is under $150,000, up from $146,000 in 2024. Once your income crosses that line, you’ll enter the phase-out range, where your contribution limit starts shrinking. And if your income jumps over $165,000 as a single filer or $246,000 as a joint filer in 2025, you’re out of luck for direct Roth IRA contributions.
The number you’ll want to keep an eye on is your modified adjusted gross income (MAGI). This is basically your adjusted gross income with a few tweaks. Once you figure out your MAGI, you can see where you stand for Roth IRA contributions in 2025.
Take a look at the Roth IRA contribution limits for 2024 and 2025 below to see if you’re eligible to take advantage of the Roth IRA’s benefits.
|
2024 Tax-Filing Status |
Income Limit For a Full Roth IRA Contribution |
Roth Contribution Phases Out Entirely For Income Above |
|---|---|---|
|
Single and head of household |
$146,000 |
$161,000 |
|
Married filing jointly |
$230,000 |
$240,000 |
Data source: IRS.
|
2025 Tax-Filing Status |
Income Limit For a Full Roth IRA Contribution |
Roth Contribution Phases Out Entirely For Income Above |
|---|---|---|
|
Single and head of household |
$150,000 |
$165,000 |
|
Married filing jointly |
$236,000 |
$246,000 |
Data source: IRS.
Should you contribute to a Roth IRA in 2025?
First, make sure you check the box on the requirements. To make direct contributions to a Roth IRA, your income has to fall below a certain threshold. If it doesn’t, you’ll need to explore alternative methods, like a backdoor Roth IRA, to get your money into this tax-advantaged account.
Next, think about what contributing to a Roth IRA means for you now versus the future. You’ll need to use after-tax dollars to contribute, but the payoff comes later when you enjoy tax-free gains and dividends once you hit 59½ and meet the five-year rule requirements. And, there’s no need to stress about required minimum distributions (RMDs). Your money can stay in the account as long as you like, giving it more time to grow. Here’s another nice feature: you can withdraw your original contributions anytime without paying income tax or early withdrawal penalties.
If these benefits sound appealing, then opening a Roth IRA and making the most of the 2025 contribution limits could be a smart move. Plus, if you anticipate your income rising in the future, you’ll want to stash away as much as possible now while you’re still able to contribute directly. The Roth IRA contribution limits might be holding steady in 2025, but if you meet the requirements, you’ve got another opportunity to set money aside and work toward the retirement you’ve always dreamed of.
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