This calculator uses the latest IRS guidelines for IRA contributions in the 2025 tax year. Here are some details to help you:
Remember to revisit this calculator annually as IRS rules and limits are updated every year.
Planning your retirement savings just got clearer with the IRS's announcement of IRA contribution limits for 2025. Whether you're under 50 or approaching retirement age, knowing these limits helps you maximize your retirement strategy and secure your financial future.
The IRA contribution landscape remains steady for 2025, with a base limit of $7,000 for traditional and Roth IRAs combined. If you're 50 or older, you can take advantage of catch-up contributions, boosting your total allowable contribution to $8,000. But there's more to consider than just these numbers - your income level and tax situation play key roles in determining your actual contribution potential.
Traditional IRAs allow tax-deductible contributions up to $7,000 in 2025 for individuals under 50, and $8,000 for those 50 and older. Your contribution deductibility varies based on income and workplace retirement plan access. The phase-out ranges for deductions in 2025 are:
| Filing Status | Phase-out Range |
|---|---|
| Single | $79,000 - $89,000 |
| Married Filing Jointly | $126,000 - $146,000 |
| Married (spouse covered) | $236,000 - $246,000 |
Roth IRAs offer tax-free withdrawals in retirement with the same contribution limits as Traditional IRAs: $7,000 for under 50 and $8,000 for 50-plus in 2025. Your eligibility to contribute depends on income limits:
| Filing Status | Contribution Phase-out Range |
|---|---|
| Single | Up to $146,000 |
| Married Filing Jointly | Contact tax advisor |
The contributions use after-tax dollars with no upfront tax deduction.
SEP IRAs enable higher contribution limits of $69,000 or 25% of gross income in 2025. This option suits self-employed individuals and small business owners. The contribution rules differ from Traditional and Roth IRAs:
| IRA Type | Contribution Limit |
|---|---|
| SEP IRA | $69,000 or 25% |
| SIMPLE IRA | Contact tax advisor |
Employers make contributions to SEP IRAs, while SIMPLE IRAs accept both employer and employee contributions.
The IRS maintains specific contribution limits for Individual Retirement Accounts (IRAs) that determine the maximum amount you can invest each year.
The maximum contribution limit for traditional and Roth IRAs is $7,000 in 2025. This limit applies to your total contributions across all IRA accounts. The contribution period starts on January 1, 2025, and ends on the tax filing deadline in April 2026. These limits remain unchanged from 2024 levels and include both deductible and non-deductible contributions for traditional IRAs.
Account holders age 50 and older can make an additional $1,000 catch-up contribution for 2025. This brings the total contribution limit to $8,000 for eligible individuals in this age group. The catch-up amount stays fixed at $1,000 and does not adjust for inflation like other retirement account limits. This extra contribution applies to both traditional and Roth IRAs.
Your IRA contributions cannot exceed your earned income for the year. Earned income includes:
For example, if your earned income is $5,000, your maximum contribution limit becomes $5,000, regardless of the standard $7,000 limit.
Your Modified Adjusted Gross Income determines your IRA contribution deduction eligibility.
MAGI calculation starts with your Adjusted Gross Income (AGI) from line 11 of Form 1040 and adds back specific deductions:
The IRS establishes income thresholds and deduction limitations for both Traditional and Roth IRAs based on filing status and workplace retirement plan coverage.
Here are the Traditional IRA deduction limits based on filing status:
| Partial deduction for MAGI between $79,000-$89,000 |
No deduction above $89,000
| Partial deduction for MAGI between $126,000-$146,000 |
No deduction above $146,000
|
No deduction for MAGI above $10,000
The income limits for Roth IRA contributions in 2025:
| Reduced contribution for MAGI between $150,000-$165,000 |
No contribution above $165,000
| Reduced contribution for MAGI between $236,000-$246,000 |
No contribution above $246,000
|
No contribution above $10,000
The IRA contribution rules include exceptions and special situations that affect your contribution limits.
A spousal IRA allows a working spouse to contribute to an IRA for a non-working spouse. The working spouse's income must equal or exceed the total contributions made to both IRAs. For 2025, married couples can contribute up to $7,000 to each spouse's IRA ($14,000 total) when filing jointly. The contribution increases to $8,000 per spouse ($16,000 total) for those age 50 or older. Both spouses receive the full contribution allowance regardless of which spouse earns the income.
The $7,000 contribution limit ($8,000 for age 50+) applies across all your traditional and Roth IRAs combined. Your total contributions to multiple IRAs cannot exceed your annual limit or earned income for the year. For example, splitting $7,000 between a traditional IRA ($4,000) and a Roth IRA ($3,000) stays within the limit. SEP and SIMPLE IRAs maintain separate contribution limits from traditional and Roth IRAs.
The IRA contribution limit remains the same whether you contribute throughout the year or make a lump sum payment. The contribution window extends from January 1, 2025, to the tax filing deadline in April 2026. For earned income under $7,000, your contribution limit equals your total earned income. A $5,000 annual income limits your total IRA contributions to $5,000, regardless of the standard $7,000 limit.
Accurate IRA contribution calculations prevent penalties and maximize retirement savings benefits.
The IRS imposes a 6% penalty tax on excess IRA contributions for each year the excess remains in your account. Excess contributions occur when you:
To fix excess contributions:
IRA contributions follow specific timing rules:
Common MAGI calculation mistakes include:
These tools and record-keeping methods ensure accurate IRA contribution calculations and documentation.
Free online IRA calculators determine your maximum contribution limits based on specific inputs:
The calculators provide instant results for Traditional IRA and Roth IRA contribution amounts. Input your information into multiple calculators to cross-reference the results for accuracy.
Create a dedicated system to track your IRA contributions:
The IRS requires these records for 3 years after filing your tax return. Store both paper and digital copies in separate locations.
Contact your financial advisor to review your calculated IRA contribution limits for 2025. Complete these essential actions:
For 2025, the base contribution limit is $7,000 for traditional and Roth IRAs. If you're age 50 or older, you can make an additional catch-up contribution of $1,000, bringing your total allowed contribution to $8,000.
Income limits affect both Traditional and Roth IRA contributions differently. For Traditional IRAs, deductibility phases out between $79,000-$89,000 for single filers and $126,000-$136,000 for married filing jointly. Roth IRA contributions phase out between $150,000-$165,000 for single filers and $236,000-$246,000 for married filing jointly.
The contribution period for 2025 starts January 1, 2025, and ends on the tax filing deadline in April 2026. You can make contributions any time during this period, either as regular deposits or as a lump sum.
Earned income includes wages, salaries, tips, bonuses, self-employment income, commissions, and alimony payments. Investment income and rental income don't qualify. Your IRA contributions cannot exceed your earned income for the year, even if it's less than the standard limit.
SEP IRA contributions can be up to $69,000 or 25% of gross income, whichever is less. This makes them particularly attractive for self-employed individuals and small business owners who want to save more for retirement.
A working spouse can contribute to an IRA for a non-working spouse, with a combined limit of $14,000 for couples under 50, or $16,000 if both are 50 or older. The working spouse must have enough earned income to cover both contributions.
Excess contributions are subject to a 6% penalty tax annually until corrected. You can fix this by withdrawing the excess amount plus earnings before your tax filing deadline, or by applying the excess to next year's contribution.
Yes, you can split your contributions between Traditional and Roth IRAs, but your total contributions across all IRAs cannot exceed the annual limit of $7,000 (or $8,000 if age 50 or older) for 2025.
For more information about IRAs, visit the IRS website or consult a financial advisor.