If you've been told you make too much money to open a Roth IRA, that math may have shifted in your favor this year.
The IRS bumped up the income thresholds for 2025, and the new numbers give a little more breathing room to savers who were previously locked out.
For single filers, the phase-out range now starts at $150,000 and ends at $165,000.
For married couples filing jointly, it runs from $236,000 to $246,000.
Fall below the bottom number and you can contribute the full amount.
Land inside the range and you can put in a reduced amount.
Go above the top and direct contributions are off the table for the year.
Those limits apply to what you earn, not what you have in the bank.
The figure that matters is your modified adjusted gross income, which is close to your regular AGI for most people but can differ if you have certain deductions or foreign income.
Your tax software or a quick look at last year's return will usually tell you the ballpark.
The contribution cap itself stayed at $7,000 for people under 50, and $8,000 for those 50 and older.
So the real story this year isn't a bigger allowance, it's a slightly wider door for higher earners.
Roth money grows tax-free and comes out tax-free in retirement, which is a rare deal.
Traditional IRAs give you a break now and tax you later.
A Roth flips that, and for a lot of younger workers or anyone expecting higher taxes down the road, that trade is worth chasing.
If you're over the limit, you still have options.
The most common workaround is a backdoor Roth: you contribute to a traditional IRA with after-tax dollars, then convert it.
It's legal and widely used, but it comes with paperwork and a pro-rata rule that can trip you up if you already hold pre-tax money in a traditional IRA.
You have until the tax filing deadline in April 2026 to make a 2025 contribution, not December 31.
That gives you extra months to sort out whether you qualify and to move the money.
Some people contribute early in the year, then get a raise or a bonus that pushes them over the limit.
If that happens, you'll need to pull the excess out or recharacterize it before the deadline, or you'll owe a 6% penalty for every year it stays in.
It's an easy mistake and an annoying fix.
Also, the income limits don't apply to Roth 401(k)s through your job.
Those have no income cap at all, so if your employer offers one, that's often the simpler path.
Check your number before you assume you're out.
A few thousand dollars of income can be the difference between contributing nothing and maxing out a tax-free account that could quietly grow for decades.
Final Thoughts
If you're anywhere near the line, run the math now rather than in April.