2024 and 2025 IRA contribution and income limits: What retirement savers need to know
The IRS left contribution limits to traditional and Roth IRAs unchanged for 2025, keeping them at their 2024 level of $7,000. Those age 50 and older can contribute an additional $1,000.
The income ranges on IRAs increased for 2025, allowing you to earn more money and still take advantage of the tax-free Roth account or the tax-deferred traditional IRA.
You will also be able to save more through workplace retirement plans such as 401(k)s and 403(b)s in 2025 thanks to the annual adjustments. Here’s what else you need to know.
IRA contribution limits unchanged for 2025
For 2025, the annual contribution limits on IRAs remains $7,000. Those aged 50 and older can contribute an additional $1,000 as a catch-up contribution, the same amount as in 2024.
Maximum contributions to employer-sponsored plans did get a boost to $23,500 for 2025, including popular 401(k) and 403(b) plans. Those age 50 and older can make catch-up contributions of $7,500.
The contribution limit on a SIMPLE IRA, another workplace plan, increased to $16,500 from $16,000 in 2024.
Higher income limits for IRAs
Income limits are also higher — albeit modestly — for IRAs. For 2025, the limits on modified adjusted gross income (MAGI) to be eligible for a Roth IRA can be seen in the table below.
| FILING STATUS | MAXIMUM INCOME FOR FULL CONTRIBUTION TO ROTH IRA | PHASES OUT AT |
|---|---|---|
| Individual, head of household | $150,000 | $165,000 |
| Married filing jointly | $236,000 | $246,000 |
In 2024, the Roth IRA limits were $146,000 to $161,000 for individuals and heads of household, and $230,000 to $240,000 for married couples filing jointly.
If your income is too high and you still want to take advantage of the account, you may be able to use a backdoor Roth IRA, but you’ll want to be careful about the tax consequences.
For traditional IRAs, the limits on MAGI for deducting contributions to an IRA also increased for 2025. Note that these limits apply only if the person making the contribution is covered by a workplace retirement plan.
| FILING STATUS | MAXIMUM INCOME FOR FULLY DEDUCTIBLE CONTRIBUTION | DEDUCTIBILITY PHASES OUT AT |
|---|---|---|
| Individual, head of household | $79,000 | $89,000 |
| Married filing jointly | $126,000 | $146,000 |
In 2024, the income ranges for deducting contributions for individuals and heads of household are $77,000 to $87,000, while the range for married couples filing jointly is $123,000 to $143,000.
If you and your spouse are not covered by an employer plan, your contributions are fully deductible regardless of your income.
Income limits are only one difference between the traditional IRA and the Roth IRA. Here are other key differences and which account is better for investors.
Bottom line
High inflation has increased the cost of living, so the IRS periodically allows you to save more towards retirement because you’ll need to put away more to maintain your standard of living. If you can, try to max out your employer-sponsored plans and your IRA. You might also consider a health savings account, which can be invested and comes with several tax advantages.
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