2025 IRA contribution limits: What you need to know
Discover the latest IRA and Roth IRA contribution limits, income thresholds, and catch-up rules for 2025.
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Key takeaways
: You can contribute up to $7,000 in 2025 ($8,000 if you’re 50 or older, including catch-up contributions), but this is a combined limit across all IRAs.
: Eligibility to contribute to a Roth IRA phases out at higher incomes — starting at $150,000 for single filers and $236,000 for joint filers.
: If you’ve already hit your IRA contribution limit, a workplace 401(k) or a high-yield savings account can help you continue building retirement savings.
Individual retirement accounts, or IRAs, are one of many options to help you save and invest money for retirement. While they may be a favorable tool to grow your retirement savings, it is important to know that they come with annual limits on how much you can contribute to your account and how much can be deducted from your taxes.
The Internal Revenue Service (IRS) sets annual contribution limits for retirement accounts, including IRAs. Because limits on IRA contributions are set and adjusted for inflation, they are updated every year. Retirement accounts like IRAs have contribution limits set by law, so employees with significantly higher incomes do not benefit more than the average worker from the tax advantages retirement accounts provide.
Since both annual contribution limits and tax deductions are impacted by your income, here is what you need to know.
2025 IRA contribution limits
The annual IRA contribution limits in 2025 will remain the same as they were in 2024. These limits are $7,000 if you are under 50 or $8,000 if you are 50 or older.¹ Individuals who are 50+ can contribute up to $1,000 in “catch-up contributions,” which is included in the $8,000 limit.2
Traditional and Roth IRA contribution limits for 2025 are the same and apply across all personal IRAs.
Catch-up contributions
Catch-up contributions are extra amounts individuals age 50 or older are allowed to contribute into their IRA on top of the standard annual limit to help them “catch up” on retirement savings as they approach retirement age.
As mentioned above, the catch-up contribution limit is $1,000, which would bring the total 2025 IRA contribution limit to $8,000 for individuals over 50.2
This catch-up contribution applies to traditional and Roth IRAs (given that you meet eligibility requirements to make contributions to a Roth IRA).
Catch-up contributions can be a great way to boost retirement savings in your 50s as you near retirement.
Additional IRA contribution rules to know
Since it is possible to have multiple retirement accounts, including IRAs and 401(k)s, it is important to be aware of rules regarding contribution limits.
The limits listed above are the total combined maximum IRA contribution limits across all personal IRAs. Therefore, if you have a traditional and Roth IRA, for example, you cannot contribute more than this limit across both accounts in a year.
You are also not allowed to contribute more than your earned income into your IRA. This means that if your income was lower than the contribution limit, your yearly IRA contribution limit may be capped at your earned income.
For example, if your income in 2025 is $6,000, then your contribution limit would be $6,000.
What happens if your IRA contribution exceeds the limit?
If you contribute more than the maximum IRA contribution limit, then you will face a penalty.
Excess IRA contributions are taxed at 6% per year by the IRS for each year the extra amount remains in your account.3 To avoid this fee, you must:
Withdraw excess contributions from your IRA by your individual income tax return due date.
Withdraw any income earned on your excess contribution.
It is important to keep track of your contributions to ensure you do not exceed the limit. If you want to save more than the IRA contribution, there are also some other options to contribute to your retirement savings.
Retirement savings options if you exceed IRA and Roth IRA contribution limits
If you want to contribute more to your retirement savings than the IRA contribution limit allows, there are also some other options you can consider.
One option may be allocating more funds to a workplace retirement plan, like a 401(k), if your employer offers that option. Since 401(k)s have higher annual contribution limits than IRAs, you may make extra contributions there, too.
If your employer does not offer a workplace retirement plan, you can also consider savings options like certificates of deposit (CDs) or high-yield savings accounts.
Savings accounts can also be a part of your retirement savings strategy, as they provide easily accessible funds while growing your retirement savings.
High-yield savings options can further help you grow your retirement savings by putting your money to work for you.
The Raisin marketplace gives you access to various savings products with competitive interest rates, which can help aid your retirement funds.
Traditional IRA income limits
Unlike Roth IRAs, traditional IRAs do not have income eligibility requirements to make contributions. You or your spouse's income can, however, impact how much of a traditional IRA contribution is tax-deductible for that year.
If you or your spouse (if you are married) do not have a retirement plan at work, you are allowed to claim a full tax deduction.4 However, if either of you do have a retirement plan at work and your income exceeds certain levels, then your deduction may be limited.4
Your eligible adjustment limit may be decreased depending on your tax-filing status and modified adjusted gross income (MAGI).
The tables below can help you figure out how much of your traditional IRA contributions may qualify for deductions. Traditional IRA deduction limits for 2025 if you are NOT covered by a retirement plan at work:5
Filing status | Modified adjusted gross income (MAGI) | Deduction limit |
Single, head of household, or qualifying widow(er) | Any amount | Full deduction up to the amount of your contribution limit |
Married filing jointly or separately with a spouse who is NOT covered by a plan at work | Any amount | Full deduction up to the amount of your contribution limit |
Married filing jointly with a spouse who IS covered by a plan at work | $236,000 or less | Full deduction up to the amount of your contribution limit |
More than $236,000 but less than $246,000 | Partial deduction | |
$246,000 or more | No deduction | |
Marrying filing separately with a spouse who IS covered by a plan at work | Less than $10,000 | Partial deduction |
$10,000 or more | No deduction |
Traditional IRA deduction limits for 2025 if you ARE covered by a retirement plan at work:5
Filing status | Modified adjusted gross income (MAGI) | Deduction limit |
Single or head of household | $79,000 or less | Full deduction up to the amount of your contribution limit |
More than $79,000 but less than $89,000 | Partial deduction | |
$89,000 or more | No deduction | |
Married filing jointly or qualifying widow(er) | $126,000 or less | Full deduction up to the amount of your contribution limit |
More than $126,000 but less than $146,000 | Partial deduction | |
$146,000 or more | No deduction | |
Married filing separately | Less than $10,000 | Partial deduction |
$10,000 or more | No deduction |
Roth IRA income limits
While traditional IRA and Roth IRA contribution limits are the same, you do need to meet income eligibility requirements to make contributions to a Roth IRA. Your contribution limit is based on your earned income and may be reduced until you are ineligible to contribute.
In short, to make full contributions, you need to make less than the limit in your appropriate filing status. The 2025 limit for full contributions to your Roth IRA is a MAGI below $150,000 for single filers or below $236,000 for married couples filing jointly.5
The table below shows the full income thresholds for Roth IRA contribution eligibility.
Eligibility requirements for tax year 2025:5
Filing status | Income thresholds |
Single, head of household, or married filing separately (did NOT live with spouse for any duration of the year) | Full contribution: < $150,000 |
Partial contribution: > $150,000 but < $165,000 | |
Ineligible: > $165,000 | |
Married filing jointly or qualifying surviving spouse | Full contribution: < $236,000 |
Partial contribution: > $236,000 but < $246,000 | |
Ineligible: > $246,000 | |
Married filing separately (did live with spouse) | Full contribution: < $10,000 |
Ineligible: > $10,000 |
Bottom line
IRA contribution limits are set by the IRS and apply to all personal IRAs. It is important to be aware of the maximum contribution limits to avoid unnecessary penalty fees. If you have a Roth IRA, you may want to be aware of income eligibility requirements.
If you are still debating which IRA is right for you or have already reached your contribution limits, you can also consider a high-yield savings account to complement your retirement savings. The Raisin marketplace gives you access to different high-yield savings products with competitive interest rates, all in one profile. Compare interest rates and start increasing your savings today.
The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
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