2025 Roth and Traditional IRA Contribution Limits

The contribution limit for individual retirement accounts (IRAs) for 2025 is $7,000. If you are 50 or older, you can contribute an additional $1,000 for a total of $8,000. This includes contributions for both Roth IRAs and traditional IRAs. But there are restrictions that could affect how much you can contribute and what you can deduct on your tax return.

Key Takeaways

• The combined annual contribution limit for Roth and traditional IRAs for 2025 is $7,000, or $8,000 if you’re age 50 or older.
• That is a combined maximum, which means the limit is the same if you have more than one IRA.
• You can only contribute earned income to an IRA.
• Roth IRA contribution limits are reduced or eliminated at higher incomes.
• Traditional IRA contributions are tax-deductible, but the amount you can deduct may be reduced or eliminated if you or your spouse are covered by a retirement plan at work.

IRA Contribution Limits

There are limits to how much you can contribute to your retirement accounts, including IRAs. These limits are set and adjusted for inflation annually and are published by the Internal Revenue Service (IRS).

The maximum contribution limit for Roth and traditional IRAs for 2025 is:

• $7,000 if you’re younger than age 50
• $8,000 if you’re age 50 or older

Important

You have until the filing deadline of the following year to contribute to an IRA. So you can contribute to your IRA for 2025 until Wednesday, April 16, 2025. The maximum contribution for 2025 is $7,000, unless you are age 50 or over. In that case, it’s $8,000.

You Can Only Contribute Earned Income

You must have earned income to contribute to an IRA. There are two ways to get earned income: work for someone else who pays you, or run a business or a farm. The IRS has a list of what’s included in earned income and what’s excluded, which is highlighted in the table below.

The IRS considers income from alimony and separation settlements as earned income as long as the decrees were executed on or before Dec. 31, 2018. Income from partnerships is excluded if the services you provided didn’t generate any material income. Amounts excluded from your income may include any foreign-earned income.

If your earned income for the year is less than the contribution limit, you can only contribute up to your earned income.

Spousal IRAs

If you don’t have earned income but your spouse does, you can open what’s called a spousal IRA. These accounts allow a person with earned income to contribute on behalf of their spouse, who doesn’t work for pay.

You can structure a spousal IRA as a traditional or Roth IRA. Either way, the spouse with earned income can contribute to the IRAs of both spouses, provided they have enough earned income to cover both contributions.

Note

To be eligible for a spousal IRA, you must be married and file a joint tax return.

Other IRAs

Contribution limits apply to other types of IRAs, as well. For self-employed people and small business owners, the contribution limit for Simplified Employee Pension (SEP) IRAs and solo 401(k) plans is 25% of compensation, up to $70,000 in 2025.

If you have a Savings Incentive Match Plan for Employees (SIMPLE) IRA, you can make salary deferrals (salary reduction contributions) up to $16,500 for 2025. If you’re age 50 or older, you can add an extra $3,500.

Roth IRA Income Limits

You can contribute to a traditional IRA regardless of how much money you earn. But you’re not eligible to open or contribute to a Roth IRA if you make too much money. Here’s a rundown of the 2024 and 2025 Roth IRA income and contribution limits, based on your filing status and modified adjusted gross income (MAGI):

There are still ways around the Roth IRA contribution limits. If you make a contribution to a nondeductible IRA, you can convert it to a Roth IRA. The same applies to nondeductible contributions made to a 401(k) plan.

Of course, any strategy with tax implications should be reviewed by a qualified tax professional.

If you make too much money, you may still be able to contribute to a Roth IRA using a strategy called a backdoor Roth IRA.

Traditional IRA Deduction Limits

Unlike Roth IRAs, there are no income limits with traditional IRAs. And you can deduct your contributions in full if you and your spouse don’t have a 401(k) or some other retirement plan at work.

If either one of you is covered by a plan at work, however, the deduction may be reduced or eliminated. Here’s the full rundown of IRA deduction limits for 2024 and 2025:

Modified Adjusted Gross Income (MAGI)

The IRS uses your MAGI when it comes to IRA limits. This number can be close (or identical) to your adjusted gross income (AGI). It takes your AGI and adds back certain deductions, including:

• Half of any self-employment taxes
• IRA contributions and Social Security
• Losses from a publicly-traded partnership
• Passive income or loss
• Qualified tuition expenses
• Rental losses
• Student loan interest
• The exclusion for adoption expenses
• The exclusion for income from U.S. savings bonds
• Tuition and fees

To calculate your MAGI, find your AGI from your tax return. It’s on line 11 of Form 1040: U.S. Individual Tax Return Definition, Types, and Use. Then, use Appendix B, Worksheet 1 from IRS Publication 590-A to modify your AGI for IRA purposes.

What If You Contribute Too Much?

It’s good to max out your IRA contributions. But if you go overboard, the IRS considers it an ineligible (or excess) contribution. If you contribute too much or contribute to a Roth when your income is too high, you’ll owe a 6% penalty on the excess contribution each year until you fix the mistake.

The good news is that there are several ways to fix your mistake:

• Withdraw the excess contribution and any earnings on it before the April tax deadline.
• If you’ve already filed your tax return, remove the excess contribution and earnings and file an amended tax return by the October deadline.
• Apply the excess to next year’s contribution. You’ll still pay the 6% penalty this year, but you’ll be all set going forward.

Of course, it’s best to avoid excess contributions altogether. Be sure to pay attention to the contribution limits for the year, keep track of your contributions, and watch your income.

What Is the Contribution Deadline for IRAs?

The contribution deadline for the previous year is the tax filing deadline. For example, the contribution deadline for 2025 is April 15, 2026.

Can a Minor Contribute to an IRA?

Yes, someone under the age of 18 can contribute to a Roth IRA or a traditional IRA, provided they meet the earned income requirements and do not earn over the income limits. However, opening the account will require a parent or guardian to be the custodian of the account.

What Is a Spousal IRA?

A spousal IRA is an IRA opened for a spouse with no earned income of their own. To contribute to a spousal IRA, you must be married and filing a joint tax return with enough earned income to cover both contributions.

Can You Get a Company Match on Your IRA Contributions?

If you have a SIMPLE IRA, yes, you can get a company match. For a traditional IRA or Roth IRA, you cannot get a direct company match on your contributions, but some employers do offer incentives for employees who open or contribute to an IRA, like a gift card or other bonus.

The Bottom Line

Any type of IRA is an excellent way to save for retirement. But to take full advantage of these accounts—and avoid any trouble or penalties—be sure to follow the rules for contribution, income, and deduction limits. The limits change periodically, so check back each year.