Roth IRA and Traditional IRA contribution limits for 2025

Ira Contribution Limits

Planning for retirement starts with understanding how much you can contribute to your IRA each year. Since the IRS updates these limits annually to keep up with inflation, staying informed is key to making the most of your savings.

In 2025, IRA contribution limits have changed again, giving you another chance to maximize your tax-advantaged savings. Whether you’re contributing to a Traditional IRA or a Roth IRA, knowing these limits can help you stay on track with your retirement goals.

Let’s break down the 2025 IRA contribution limits, what they mean for you, and how you can make the most of them while staying compliant.

Key Takeaway

  1. The 2025 IRA contribution limit is $7,000 if you’re under 50, and $8,000 if you’re 50 or older.

  2. Roth IRA income phase-outs start at $150,000 for single filers and $236,000 for married couples filing jointly.

  3. Traditional IRA deduction limits vary based on income and workplace plan participation.

  4. You must have earned income to contribute to an IRA. If you’re not working but your spouse is, a spousal IRA may still allow you to contribute.

  5. You can contribute to both a 401(k) and an IRA in the same year, but each account has separate contribution limits and rules.

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What is an IRA?

Before diving into the numbers, let’s quickly review what an IRA is. An Individual Retirement Account (IRA) is a type of tax-advantaged account designed to help you save for retirement. There are two main types:

  • Traditional IRA: Contributions may be tax-deductible, and earnings grow tax-deferred until you withdraw them in retirement.
  • Roth IRA: Contributions are made with after-tax dollars, but qualified withdrawals are tax-free.

You can generally contribute to either one (or both), but the total contribution across all IRAs must stay within the annual limit.

Traditional and Roth IRA contribution limits 2025

For the tax year 2025, the contribution limits for both Roth and Traditional IRAs remain consistent with prior years. The IRS has set the following limits this year.

  • Under age 50: You can contribute up to $7,000 per year
  • Age 50 & older (Catch-up contribution): You can contribute an additional $1,000 as a catch-up contribution, bringing the total to $8,000

These limits apply to the combined total of contributions across all your IRAs. 

For example, if you have both a Roth and a Traditional IRA, your total contributions to both accounts cannot exceed $7,000 (or $8,000 if you’re 50 or older).

A. Roth IRA contribution limits

Roth IRAs are funded with after-tax dollars, meaning you won’t get a tax deduction for your contributions. However, qualified withdrawals during retirement are tax-free. Here’s what you need to know about Roth IRAs in 2025:

Contribution rules

  • After-tax contributions: You contribute with money that’s already been taxed. Roth IRAs don’t offer an upfront deduction.
  • Income limits apply: Your contribution limit may be reduced or eliminated if your income exceeds the IRS phase-out thresholds.
  • Tax-free withdrawals: Qualified withdrawals in retirement are tax-free, as long as you meet holding period and age requirements. 

Income limits

Your eligibility to contribute to a Roth IRA depends on your Modified Adjusted Gross Income (MAGI) and filing status:

Filing Status Full Contribution If MAGI ≤ Partial Contribution If MAGI Between No Contribution If MAGI ≥
Single or Head of Household $150,000 $150,000 – $165,000 $165,000
Married Filing Jointly $236,000 $236,000 – $246,000 $246,000
Married Filing Separately N/A $0 – $10,000 $10,000

Source: 401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000

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B. Traditional IRA Contribution Limits

Traditional IRAs allow you to contribute pre-tax dollars (in most cases), which can reduce your taxable income. However, withdrawals in retirement are taxed as ordinary income.

Contribution rules

  • No income limits: If you have earned income, you can contribute to a Traditional IRA—regardless of how much you make.
  • Potential tax deductions: Your contribution may be fully, partially, or non-deductible based on your income and whether you (or your spouse) are covered by a workplace retirement plan.
  • Tax-deferred growth: You won’t pay taxes on earnings until you begin making withdrawals in retirement, subject to IRS rules.

Income limits

If you or your spouse are covered by a retirement plan at work, your ability to deduct contributions to a Traditional IRA depends on your Modified Adjusted Gross Income (MAGI) and tax filing status.

If you are covered by a workplace retirement plan:

Filing Status Full Deduction If MAGI ≤ Partial Deduction If MAGI Between No Deduction If MAGI ≥
Single or Head of Household $79,000 $79,000 – $89,000 $89,000
Married Filing Jointly $126,000 $126,000 – $146,000 $146,000
Married Filing Separately N/A $0 – $10,000 $10,000

If you are not covered by a workplace plan but your spouse Is:

Filing Status

Full Deduction If MAGI ≤

Partial Deduction If MAGI Between No Deduction If MAGI ≥
Married Filing Jointly $236,000 $236,000 – $246,000 $246,000
Married Filing Separately

N/A

$0 – $10,000 $10,000

Source: 401(k) limit increases to $23,500 for 2025

If neither you nor your spouse is covered by a retirement plan at work, you can deduct the full amount of your Traditional IRA contribution, regardless of your income.

Examples to understand IRA contribution limits

To better understand how these limits work in practice:

1. Roth IRA Example:

If you’re single with a MAGI of $155,000 in 2025 and under age 50: Your Roth IRA contribution limit will be reduced based on IRS phase-out rules.

If you’re married, filing jointly with a MAGI of $240,000: You can make only partial contributions to a Roth IRA.

2. Traditional IRA Example:

If you’re married filing jointly with a MAGI of $130,000, and covered by a workplace plan: Your Traditional IRA contributions will be partially deductible.

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How to open an IRA account on Public.com

Public is an investor-friendly platform that simplifies the process of opening and managing IRA accounts. Whether you’re looking to build long-term retirement savings or roll over an existing IRA, Public.com offers a transparent and easy-to-use experience. Here’s how to get started:

1. Sign up for an IRA account on Public

To open an IRA, visit Public.com or download the Public app on iOS or Android. The platform provides a seamless onboarding process, guiding you through account setup and helping you understand your investment options.

2. Fund your IRA account

Once your IRA is set up, you can start contributing by:

  • Linking a Bank Account: Transfer funds securely via ACH or debit card.
  • Rolling Over an Existing IRA or 401(k): If you have a retirement account with another provider, Public.com supports rollovers, allowing you to consolidate and manage your investments in one place.

3. Set up contributions for long-term growth

To stay on track with your retirement savings goals, you can choose:

  • One-Time Deposits: Make individual contributions whenever it fits your financial plan.
  • Automatic Contributions: Set up recurring deposits to ensure consistent contributions over time, helping to maximize potential tax benefits and long-term growth.

4. Invest and manage your IRA with Public.com

Public offers a user-friendly platform to help you build and manage a diversified retirement portfolio. You can invest in:

  • Stocks, ETFs, and Bonds to align with your risk tolerance, investment horizon, and long-term retirement goals.
  • Research and Analytical Tools that provide real-time market data, expert insights, and community discussions to support informed decision-making.

5. Monitor your retirement progress

Public provides an intuitive dashboard where you can:

  • Track investment growth and make adjustments as needed.
  • Stay informed with real-time market data, analyst insights, and community discussions.
  • Align your strategy with long-term retirement planning goals.

By leveraging Public’s platform, investors can efficiently manage their Traditional IRA and Roth IRA accounts, take advantage of tax-deferred growth, and build a strong foundation for retirement. Get started today!

Conclusion

Understanding your IRA contribution limits for 2025 helps you stay within IRS rules and better structure your retirement savings. Whether you’re contributing to a Roth IRA, a Traditional IRA, or both, these limits play a key role in your long-term planning.

If you’re looking for a platform to manage your IRA effectively, consider opening an IRA with Public. Public offers unique features like a 1% match on annual contributions and access to thousands of investment options including stocks, ETFs, bonds, and even options trading. Plus, with rollover bonuses of up to $10,000 and built-in protections from SIPC, Public provides a robust solution for your retirement savings. 

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Frequently Asked Questions

1. What is the maximum amount I can contribute to an IRA in 2025?

In 2025, you can contribute up to $7,000 if you’re under 50. If you’re 50 or older, you get a $1,000 catch-up bonus, bringing your total limit to $8,000.

2. Can I contribute to both a Traditional and Roth IRA?

Yes, you can contribute to both, but the combined total contribution can’t go over $7,000 (or $8,000 if you’re 50+). Just keep in mind that Roth IRA contributions depend on your income eligibility.

3. What happens if I go over the IRA contribution limit?

If you contribute over the IRA contribution limit, the IRS charges a 6% penalty on the excess amount each year until you fix it. You can withdraw the extra funds before the tax deadline or roll it into next year’s contributions.

4. When is the last day to contribute to my IRA for 2025?

April 15, 2026 is the last day to contribute for 2025 IRAs, which lines up with the standard IRS tax filing deadline.

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