The numbers that decide whether you can fund a Roth IRA this year are out, and millions of American workers are about to discover they earn too much to use the account they've been contributing to for years.
The IRS raised the income thresholds for 2025, but not by enough to keep pace with raises, bonuses, and cost-of-living adjustments that have pushed salaries upward.
For 2025, single filers can make a full Roth contribution if their modified adjusted gross income stays under $150,000, up from $146,000 last year.
Married couples filing jointly get a full contribution up to $236,000, with the ability tapering off completely at $246,000.
Contribute through a workplace plan like a 401(k)?
Those numbers don't matter for that account, but they matter a lot for the Roth.
Here's the part that trips people up: the limit is based on modified adjusted gross income, not your salary line on a W-2.
A year-end bonus, a side gig, rental income, or a capital gain from selling stock can quietly push you over the threshold.
Many workers only find out at tax time, after they've already made contributions they weren't eligible to make.
The contribution cap itself stayed at $7,000 for anyone under 50, with a $1,000 catch-up for those 50 and older.
If you're married and both spouses qualify, that's up to $14,000 or $16,000 combined, which is real money growing tax-free for retirement.
So what do you do if your income lands in the phase-out zone?
The IRS uses a formula that reduces your allowed contribution gradually as your income rises through the range.
You may still be able to put in a partial amount, and calculators from major brokerages can run the math for you in a few minutes.
If you've already maxed out a Roth this year and then got a raise or a surprise bonus, you have options.
You can ask your broker to recharacterize the contribution, which essentially moves it into a traditional IRA so it isn't treated as an excess contribution.
Doing this before the tax filing deadline avoids a 6% penalty for every year the excess stays in the account.
Higher earners still have a legal path to Roth dollars, though it requires extra steps.
A backdoor Roth contribution means funding a traditional IRA with after-tax money, then converting it to a Roth.
The catch is the pro-rata rule: if you already hold pre-tax money in a traditional IRA, part of the conversion becomes taxable.
People with large existing IRA balances should talk to a tax professional before trying this.
The simplest move is to check your eligibility now, not in April.
Look at your expected modified adjusted gross income, not last year's return, and adjust your contribution plan before December.
If you're close to the line, holding off on the final contribution until you know your year-end numbers can save you a paperwork headache. **The bottom line:** These limits rise most years, but wages have been climbing faster for many households, which means the Roth door keeps closing on people who assumed it would always stay open.
Final Thoughts
Check your number early, know your phase-out range, and fix any excess contribution before the deadline rather than after.