IRA Contribution Guide 2025

IRA Basics

An Individual Retirement Account (IRA) is a US tax-advantaged retirement account separate from any workplace 401(k). 2025 contribution limit: $7,000 across all your IRAs combined. Catch-up if 50+: additional $1,000 (total $8,000). This is COMBINED — if you have both a Traditional and Roth IRA, you split the $7,000 between them. Must have earned income at least equal to your contribution. A spouse who doesn't work can still contribute via Spousal IRA if their working spouse has earned income.

Roth IRA Income Limits 2025

Roth IRA contributions phase out at higher incomes. 2025 phase-out: Single/HoH: full contribution under $150,000 MAGI; phases out to $0 by $165,000. Married filing jointly: full under $236,000; phases out to $0 by $246,000. Married filing separately: phases out from $0 to $10,000 (almost always blocked). Earn over these limits and you can't contribute to Roth IRA directly — but the 'backdoor Roth' workaround is legal and well-established (see below).

Traditional IRA Deductibility 2025

Traditional IRA contributions may or may not be tax-deductible depending on income AND whether you're covered by a workplace plan. If NEITHER you nor spouse has workplace plan: fully deductible regardless of income. If you have workplace plan: deduction phases out single $79,000-$89,000; MFJ $126,000-$146,000. If only spouse has workplace plan: phases out $236,000-$246,000. Note: non-deductible Traditional IRA contributions are still allowed — they create 'basis' for tax purposes and form the fo

The Backdoor Roth IRA

High earners blocked from direct Roth contributions can use the backdoor Roth: (1) Contribute to a non-deductible Traditional IRA ($7,000 limit). (2) Immediately convert that Traditional IRA to a Roth IRA. Since the contribution was non-deductible, the conversion is mostly tax-free (only any growth between contribution and conversion is taxable). This is explicitly legal and acknowledged by the IRS. Watch out: the 'pro-rata rule' makes this messy if you have OTHER pre-tax IRA money. If you have

Not financial advice. This calculator is for general information and education only. Figures are estimates and may not reflect your circumstances. For decisions, consult the FCA register and a qualified financial adviser. See our editorial standards.

IRA Contribution Calculator (2025)

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