Opening an individual retirement account (IRA) is the most common way to save for retirement. Although there are no limits on income in a traditional IRA. However, how much you contribute to a Roth IRA depends on how much you earn. Income limits for a Roth IRA fix the maximum earnings that individuals or couples can have. They must earn under the specified limit to qualify for contributions within a particular year.
To make a full contribution, single filers must have MAGI (Modified Adjusted Gross Income) for 2025 of less than $150,000. Similarly, joint filers must have less than $236,000. Individuals of any age having a qualifying income can contribute, as there are no age requirements.
Whether you can make the maximum Roth IRA contribution or not depends on your tax filing status and your MAGI. Keep reading further to learn more about the Roth IRA contribution limits
Key Takeaways
- You must have earned income to be able to contribute to a Roth IRA.
- For 2025, the standard Roth IRA contribution limit is $7,000. Also, an additional catch-up contribution for those age 50 or older of $1,000. It increases their total limit to $8,000.
- You can contribute the full amount only if your MAGI is under the specified thresholds.
- For single filers in 2025, the contribution ability will be phased out if your MAGI is $165,000 or more.
- For married filing jointly, the ability to contribute the amount phases out if their MAGI is $246,000 or above.
- If your income exceeds the limit, you can contribute directly to a Roth IRA by using the backdoor Roth IRA strategy.
- The deadline to make contributions for a given year is until the tax filing deadline of the following year. It means you can contribute to your 2024 Roth IRA until the tax filing deadline in April 2025.
What are the Roth IRA Contribution Limits?
A Roth IRA provides significant tax benefits. One of the Roth IRA benefits is that the money you invest in such accounts grows tax-free. It avoids the need to report investment earnings, the money your money makes, while filing your taxes.
Contribution limits for Roth IRA state the maximum amount that an individual can invest in their account every year. Remember that these limits are reset annually. Generally, the deadline to contribute for a given year is April 15 of the following year.
The Roth IRA contribution limit for 2025 is $7,000 or $8,000 for individuals ages 50 and above. This allows them to make additional contributions to those who are going to retire soon.
Filing status
|
Modified Adjusted Gross Income (MAGI)
|
Roth IRA Contribution Limit (2025)
|
|
Single, married filing separately (if you didn't live with your spouse at any point during the year), or head of household
|
Less than $150,000
|
$7,000 ($8,000 for those over age 50)
|
|
$150,000 or more but less than $165,000
|
Reduced contribution depending on your income
|
|
$165,000 or more
|
$0
|
|
Married, filing jointly, surviving spouses
|
Less than $236,000
|
$7,000 ($8,000 for those over age 50)
|
|
$236,000 or more but less than $246,000
|
Reduced contribution depending on your income
|
|
$246,000 or more
|
$0
|
|
Married filing separately (if you lived with your spouse at any point during the year)
|
Less than $10,000
|
Reduced contribution depending on your income
|
|
$10,000 or more
|
$0
|
Did You Know
Generally, an NRI is not allowed to contribute to a Roth IRA unless they have a U.S. source earned income that is taxable and effectively connected with a trade or business in the U.S.
For instance, suppose an Indian citizen working in the U.S. temporarily on an H-1B visa is earning a salary that is reported on a W-2. Then, they may be eligible to contribute to a Roth IRA, subject to income limits.
However, if the same person lives and stays in India without having any U.S. taxable income, then they won’t qualify to contribute to a Roth IRA.
What are the Contribution Limits for Married Couples?
The Roth IRA contribution limits for married couples will differ based on their filing status. Couples filing jointly will have higher income limits for contributions as compared to couples filing separately.
For example, married couples filing jointly in 2025 with a MAGI under $236,000 are eligible for full contributions. On the other hand, married filing separately has much lower limits. This applies particularly if they stayed with their spouse at any time throughout the year.
Threshold for Married Couples Filing Separately
In 2025, married couples filing separately face strict Roth IRA contribution limits. They can contribute to a Roth IRA if their MAGI (Modified Adjusted Gross Income) is below $10,000. Also, if they have lived with their spouse at any time throughout the year.
Contributions are phased out completely for couples having MAGI of $10,000 or more. Remember, married couples filing separately are allowed to contribute to a Roth IRA. However, the income and contribution limits are reduced significantly compared to other filing statuses, specifically if they live with their spouse.
Married Couples Filing Jointly
Married couples filing jointly in 2025 can contribute to a Roth IRA if their MAGI is under $236,000. Each spouse is allowed to have their own Roth IRA, which allows them to contribute individually. The overall contribution limit for individuals is $7,000 or $8,000 if they are aged 50 or above.
Hence, a married couple can contribute nearly $14,000 or $16,000 together if they both qualify and are aged above 50. Also, a nonworking spouse is allowed to contribute to a Roth IRA using a spousal IRA. This applies if the working spouse has acquired enough income to cover both contributions.
What are the Phaseout Ranges for Roth IRA?
If your MAGI reaches the upper limits of the applicable phaseout ranges. Then, your contribution can either be reduced or “phased out”. The table below states the applicable phaseout ranges:
| Filing Status |
Income Range for 2025 |
| Single |
$150,000-$165,000 |
| Married, filing jointly |
$236,000-$246,000 |
| Married, filing separately |
$0–$10,000 |
What are Roth IRA Catch-Up Contributions?
Roth IRA catch-up contributions are extra contributions that can be made by individuals aged 50 or above. These are designed to help such individuals increase their retirement savings as they reach their retirement age.
For 2025, people who qualify for catch-up contributions can contribute an additional $1,000. This increases their overall contribution limit from $7,000 to $8,000. The increased limit is applicable to every individual who fulfills the age criteria. It allows them to grow their savings in their Roth IRA accounts.
What If I Make an Excess Roth IRA Contribution?
An excess Roth IRA contribution occurs when an individual contributes more than the permitted limit in a specific tax year. In case your contribution surpasses the annual limit, the IRS will impose a tax penalty of 6% on the excess amount every year till it is kept in your account.
Before filing your tax return, you can withdraw the excess contributions and any earnings acquired on them to avoid the penalty. Furthermore, you can also apply the excess contribution towards the next year’s contribution limit.
What is a Backdoor Roth IRA?
Suppose you exceed the Roth IRA income limit, then comes the option of a backdoor Roth IRA. A Backdoor Roth IRA is basically a strategy for a person whose income is too high to contribute directly to Roth IRA contributions. Using this strategy, instead of a Roth IRA, they can contribute to a traditional IRA. After that, they can convert those funds into a Roth IRA. This will help these individuals bypass any income restrictions, allowing for tax-free growth and withdrawal from the account in retirement.
To Conclude
Roth IRA contribution limits needs an individual to have sufficient earned income to make direct contributions. For 2025, the contribution limit is $7,000, along with an additional $1,000 catch-up for those aged 50 or older. The eligibility to contribute the full amount is determined based on your MAGI (Modified Adjusted Gross Income).
Furthermore, if you are confused about the backdoor Roth IRA strategy, your eligibility based on MAGI and need assistance in understanding the rules. Then, contact the experts at Savetaxs.
We have a team of expert professionals who can help you determine your eligibility and the amount you can contribute based on your MAGI. Our experts can help you prevent penalties for excess IRA contributions by ensuring accuracy. Our extensive client base serves as a strong testament to our service quality.
We are working around the clock across all time zones, so connect with us right away and get the best quality service you deserve and a peace of mind without any hassle.
Note: This guide is for information purposes only. The views expressed in this guide are personal and do not constitute the views of Savetaxs. Savetaxs or the author will not be responsible for any direct or indirect loss incurred by the reader for taking any decision based on the information or the contents. It is advisable to consult either a CA, CS, CPA, or a professional tax expert from the Savetaxs team, as they are familiar with the current regulations and help you make accurate decisions and maintain accuracy throughout the whole process.
India
USA
Tax Consultancy Services
