The IRS quietly moved the goalposts again, and if you've been planning to fund a Roth IRA this year, the number that matters most just shifted.
For 2025, the income phase-out ranges for Roth IRA contributions went up, which means some savers who got locked out last year can now get back in.
Here's the short version: if you're single, your ability to contribute starts phasing out at $150,000 in modified adjusted gross income, up from $146,000 in 2024.
For married couples filing jointly, the range jumps to $236,000–$246,000, up from $230,000–$240,000 last year.
Those modest bumps matter more than they look.
A raise, a bonus, or a side gig that pushes you past the old threshold could have disqualified you entirely.
Now that same income might land you in the partial-contribution zone instead of the no-go zone.
So what happens if you fall in the middle?
You don't get a flat yes or no — you get a sliding scale.
The IRS publishes a worksheet, but the rough math is that your allowed contribution shrinks as your income climbs through the range.
Hit the top of the range and your limit drops to zero.
If you're above the limit, you're not completely out of options.
You can still make a nondeductible contribution to a traditional IRA and then convert it to a Roth, a maneuver commonly called a backdoor Roth.
Just know the IRS has been paying closer attention to this strategy, and the pro-rata rule can complicate things if you already hold pre-tax money in a traditional IRA.
One thing people get wrong every year: the contribution limit itself didn't change.
It's still $7,000 for those under 50, or $8,000 if you're 50 or older.
The income limits are separate from the contribution cap, and mixing them up is a common and costly mistake.
Your income for the year is what counts, not your income when you make the contribution.
You can fund a Roth in January based on last year's salary and still blow past the limit by December thanks to a year-end bonus.
If that happens, you have until the tax filing deadline to fix it — usually by removing the excess contribution and any earnings, or recharacterizing it.
There's also a lesser-known wrinkle: your ability to contribute depends on modified adjusted gross income, which includes things like taxable investment gains and some foreign income.
If you sold a rental property or cashed out a big brokerage position, that can push you over the line even if your paycheck didn't change.
For most workers, the practical takeaway is simple.
Check your MAGI before you contribute, not after.
If you're anywhere near the phase-out range, run the numbers or talk to a tax pro before you drop $7,000 into an account you might have to unwind later. **Our take:** The higher limits are a small win, but they don't change the bigger picture — the Roth remains one of the best deals in the tax code for people who expect higher taxes later.
The catch is that the rules reward people who plan ahead and punish people who guess.
Final Thoughts
A ten-minute check now beats a messy correction in April.