The numbers that decide whether you can fund a Roth IRA this year got a fresh update, and they're a bit higher than last year.
The IRS raised the income ranges that determine who's eligible to contribute to a Roth, which is welcome news for savers who were nudged out of the game in 2024.
For 2025, single filers can make a full contribution if their modified adjusted gross income is under $150,000, up from $146,000 last year.
The phase-out range — where your allowed contribution shrinks as your income rises — now runs from $150,000 to $165,000 for singles.
Married couples filing jointly get more room too.
The full-contribution ceiling moved to $236,000, and the phase-out range now tops out at $246,000.
Above those numbers, the direct Roth door closes for the year.
The contribution cap itself stayed at $7,000 for anyone under 50, with an extra $1,000 catch-up for those 50 and older.
That means a couple both over 50 could potentially stash $16,000 in Roth accounts for 2025, assuming they qualify.
Here's the part that trips people up: if you're in the phase-out zone, you can't just pick a number and hope for the best.
You have to calculate your reduced limit using a worksheet in IRS Publication 590-A, or let tax software do the math.
Contribute too much and you'll owe a 6% penalty on the excess for every year it stays in the account.
If you earn too much for a direct Roth contribution, the backdoor Roth strategy still exists.
You contribute to a traditional IRA — no income limit there — then convert it to a Roth.
It's legal and widely used, but it comes with a catch: if you already hold pre-tax money in a traditional IRA, the conversion gets messy under the pro-rata rule.
A clean backdoor usually means having no existing traditional IRA balance, or rolling old 401(k) money into a workplace plan first.
One more thing worth knowing: the income limits apply to modified adjusted gross income, not your salary on its own.
Deductions, certain foreign income, and other adjustments can pull your number down, so a raise doesn't automatically disqualify you.
Checking your actual MAGI before assuming you're out could save you from missing a year of tax-free growth.
You have until the April 2025 tax deadline to make 2024 contributions, and all of 2025 plus early 2026 to fund this year's account.
Miss the window and that contribution space disappears for good.
The takeaway is simple: the rules shift a little every year, and assuming last year's numbers still apply is how people accidentally overcontribute or skip a year they didn't need to.
Final Thoughts
A quick check with your tax preparer or a five-minute look at the IRS tables is worth it before you write that check.