The IRS has bumped up the income thresholds that determine who can contribute to a Roth IRA, and the increase is bigger than usual.
For 2025, single filers can earn up to $150,000 before their ability to contribute starts phasing out, up from $146,000 last year.
Married couples filing jointly get a ceiling of $236,000, a $6,000 jump from 2024.
Those phase-out ranges matter more than the headline numbers.
If you're single, your full contribution is safe below $150,000, and you can still put in a partial amount until your modified adjusted gross income hits $165,000.
For joint filers, the window runs from $236,000 to $246,000.
Cross those lines entirely and the direct Roth door closes for the year.
Roth contributions go in after taxes, so you don't get a break today.
The payoff comes later, when withdrawals in retirement are tax-free, assuming you follow the rules and you're at least 59½ with a five-year-old account.
For anyone who expects higher taxes down the road, that trade-off has real appeal.
The limits also rose for how much you can stash away.
You can contribute up to $7,000 in 2025, or $8,000 if you're 50 or older.
That catch-up amount didn't change, but the base limit is up $500.
Miss the deadline and you can't go back and fill the gap later, since contributions must be tied to a specific tax year.
Here's the part many people miss: if you're married and file separately, the phase-out range is brutally narrow, running from $0 to $10,000.
That trips up couples who split their taxes for other reasons.
And if you earn too much for a direct Roth, a backdoor conversion — contributing to a traditional IRA and converting it — remains a common workaround, though it comes with extra paperwork and tax rules worth understanding before you try it.
Employer plans don't count against these limits, so a workplace 401(k) doesn't block you from also funding a Roth IRA.
But your ability to deduct a traditional IRA contribution can be affected by a workplace plan, which is one reason the Roth stays popular with higher earners who still qualify.
If you're near the edge of the range, a year-end bonus or a raise could push you over mid-year.
A good move is to check your projected income before you max out early.
Overcontributing means fixing it before the tax deadline, often with a penalty if you wait too long.
The takeaway: the door opened a little wider this year.
If you were shut out in 2024, it's worth running your numbers again.
The annual inflation adjustment to these thresholds is easy to overlook, but for savers sitting just under the line, it can mean thousands of dollars of tax-free growth over decades.
Final Thoughts
Check your MAGI, not just your salary, before assuming you're ineligible.