The numbers that decide whether you can fund a Roth IRA this year have shifted again, and depending on your salary, the door may be wider open — or quietly closing.
The IRS released updated income thresholds for 2025, and they matter more than most people realize.
If you're single, your ability to contribute to a Roth starts phasing out once your modified adjusted gross income hits $150,000, up from $146,000 last year.
For married couples filing jointly, the range now runs from $236,000 to $246,000, a bump from the prior $230,000 to $240,000.
Below those thresholds, you can contribute the full $7,000 for 2025, or $8,000 if you're 50 or older.
Above them — and this is where people get tripped up — you can't just ignore the rule and fund the account anyway.
The IRS will eventually catch it, and the penalty is a 6% excise tax on the excess contribution for every year it stays in.
Because wages have climbed with inflation, and a raise that feels like progress can push you over a limit you didn't know existed.
A $4,000 bonus in December could quietly disqualify your January contribution.
If you're single and earn $155,000, you're not shut out — you can contribute a reduced amount.
The math is a sliding scale, and your brokerage or tax software usually calculates it for you.
The bad news: if you guess wrong and over-contribute, you're the one on the hook.
First, check your modified adjusted gross income, not your gross salary — they're different, and things like student loan interest can lower the number that counts.
Second, if your income is unpredictable, wait until you file your taxes to contribute for the prior year, since you have until the April deadline.
Third, if you're over the limit entirely, look into a backdoor Roth conversion, but talk to a tax professional first, because the pro-rata rule can create a surprise tax bill if you also hold a traditional IRA.
Also worth noting: the income limits only apply to Roth contributions.
They don't stop you from converting an existing traditional IRA or 401(k) to a Roth, though that move is taxable.
And workplace Roth 401(k)s have no income limit at all, which catches plenty of high earners off guard.
A number you memorized two years ago is probably wrong today.
Check the current figure, check your actual income, and don't assume last year's strategy still fits. **Our take:** The annual limit adjustments are small enough that most people ignore them, and that's exactly the problem.
Final Thoughts
A five-minute check against your real income could save you a penalty and a headache down the line.