When you first start saving for retirement, you might feel intimidated by all the choices available. To get started, you need to decide where to keep your retirement funds and learn about the rules and limits of that account. IRA offer both traditional and Roth account types. Each has specific contribution limits, income limits and tax rules.
Even if you have an employer-sponsored retirement account, a supplemental retirement account like an IRA can bring you more flexibility and increase your saving power.
Roth IRA vs. traditional IRA
Your money grows tax-deferred with a traditional IRA, which means you pay taxes on it when you withdraw money during retirement. On the other hand, you contribute after-tax earned income with a Roth IRA, which means it grows tax free.
Roth IRA vs. traditional IRA contribution limits
It’s important to stay on top of your current IRA contribution, income and age limits, so you can take full advantage of your IRA without being penalized for contributing too much. IRA contribution limits for 2025 include the following:
Contribution limits | Roth IRA | Traditional IRA |
|---|---|---|
Contribution limits | $7,000 age 49 and younger; $8,000 age 50 or older | Same as Roth IRA |
Income phase-out ranges | $150,000 to $165,000 for single taxpayers and heads of household $236,000 to $246,000 for those married, filing jointly or qualified widow(er) $0 to $10,000 for those married, filing separately | $79,000 to $89,000 for single taxpayers covered by a workplace retirement plan $126,000 to $146,000 for married couples filing jointly. This applies when the spouse making the IRA contribution is covered by a workplace retirement plan $236,000 to $246,000 for taxpayers not covered by a workplace retirement plan, married to someone who's covered $0 to $10,000 for those married filing a separate return — applies to taxpayers covered by a workplace retirement plan |
Age limits | Contribute at any age but can contribute an extra $1,000 if age 50 and older | Same as Roth IRA |
Income limits for Roth IRA vs. traditional IRA
With a traditional IRA, income limits determine whether you can deduct your traditional IRA contributions. If you or your spouse have a retirement plan through an employer, your ability to deduct might change. If you have a Roth IRA, your contribution will not be deductible — but income limits do determine your maximum annual contribution. The charts below will help you figure out where you stand. You’ll need two pieces of information: your filing status and your modified adjusted gross income (which you can figure out using the instructions provided in IRS Publication 590-A).
Roth IRA income limits for 2025 contributions
The most common IRA contribution guidelines — based on adjusted gross income (AGI) — for 2025 include:
Filing status | 2025 modified AGI | Maximum contribution |
|---|---|---|
Single, head of house or married filing separately (and you did not live with your spouse at any time during the year) | Less than $150,000 | Up to the limit |
Single, head of house or married filing separately (and you did not live with your spouse at any time during the year) | More than $150,000 but less than $165,000 | Reduced amount |
Single, head of house or married filing separately (and you did not live with your spouse at any time during the year) | More than $165,000 | $0 |
Married filing separately and you lived with your spouse at any time during the year | Less than $10,000 | Reduced amount |
Married filing separately and you lived with your spouse at any time during the year | More than $10,000 | $0 |
Married filing jointly or qualifying widow(er) | Less than $236,000 | Up to the limit |
Married filing jointly or qualifying widow(er) | More than $236,000 but less than $246,000 | Reduced amount |
Married filing jointly or qualifying widow(er) | More than $246,000 | $0 |
Traditional IRA deduction limits for 2025
Keep in mind that the income limits below are only applicable to you if you are covered by a retirement plan at work in addition to your IRA. This is based on modified adjusted gross income after considering certain allowable deductions and tax penalties.
Filing status | 2025 modified AGI | Deduction |
|---|---|---|
Single, head of house or married filing separately (and you did not live with your spouse at any time during the year) | $79,000 or less | Full deduction |
Single, head of house or married filing separately (and you did not live with your spouse at any time during the year) | Between $79,000 and $89,000 | Reduced deduction |
Single, head of house or married filing separately (and you did not live with your spouse at any time during the year) | More than $89,000 | No deduction |
Married filing separately and you lived with your spouse at any time during the year | Less than $10,000 | Reduced amount |
Married filing separately and you lived with your spouse at any time during the year | More than $10,000 | $0 |
Married filing jointly or qualifying widow(er) | $126,000 or less | Full deduction |
Married filing jointly or qualifying widow(er) | Between $126,000 and $146,000 | Reduced deduction |
Married filing jointly or qualifying widow(er) | More than $146,000 | No deduction |
What happens if I contribute too much to my IRA?
If you exceed the limit, you typically have until the filing deadline to fix the mistake (or October 15 if you’re filing an extension). You can contact your plan administrator to help file the appropriate paperwork and remove the excess contribution. For every year the excess amount stays in your account, you’ll have to pay a 6% penalty on the overcontribution.
Maximizing your contributions
Get the most out of your retirement savings by taking strategic steps to optimize tax advantages and long-term growth.
Contribute early
Setting aside money in your IRA earlier in the year — rather than waiting until April of the following year to make a prior-year contribution — can allow your money to compound, which can add up over time.
Diversify tax advantages
Traditional and Roth IRAs offer different tax advantages, so having both types of accounts can diversify the benefits you receive.
Review and adjust
Ensure your IRA aligns with your financial goals, risk tolerance and income by regularly reviewing and adjusting your contributions.
Get ahead on your contributions Knowing the limits of any account is important as you work on your saving strategy. With these IRA limits in hand, you’re one step closer to being well-prepared for retirement. Whether you choose a traditional or Roth IRA, opening a tax-advantaged retirement account is a smart step to getting serious about saving for those golden years.
