If you’ve been investing and trading for decades, you already know the importance of optimizing every aspect of your retirement savings. A Roth IRA lets you contribute after-tax dollars today, with the potential to withdraw both contributions and earnings tax-free in retirement—if IRS rules are met.
For 2025, the Roth IRA contribution limits remain unchanged from 2024. These limits—often called income limits, salary caps, or wage thresholds—determine how much you can contribute based on your modified adjusted gross income (MAGI) and filing status.
This comprehensive guide will cover every aspect of Roth IRA contribution limits for 2025.
What are the Roth IRA contribution limits for 2025?
For the 2025 tax year, the Roth IRA contribution limit set by IRS are:
This limit applies across all your IRA accounts (Traditional plus Roth). It is not a per-account limit. If you have both a Roth IRA and a Traditional IRA, your total contributions to all IRAs cannot exceed your annual IRS limit.
Roth IRA income limits: How much can you contribute based on your wages?
The IRS uses your modified adjusted gross income (MAGI) and tax filing status to determine how much, if any, you can contribute to a Roth IRA in 2025.
Source: IRS
If your MAGI is within the phase-out range, your eligible contribution is reduced proportionally.
If you’re over the phase-out range, you won’t be eligible to contribute directly to a Roth IRA, but strategies like the backdoor Roth IRA may be available to you.
If you prefer an IRA platform that fits into your day-to-day investing routine, you may consider opening a Roth IRA with Public.com. With Public, you can contribute, monitor your positions, and manage allocations across stocks, bonds, ETFs, high-yield cash accounts, crypto, options, and Treasuries, all in one place, and help you stay within annual IRS limits.
a. Uncapped 1% match on rollovers & transfers:
Transfer an IRA or roll over a 401(k) and receive a 1% match on your full balance, a unique benefit for maximizing your transfer. The match does not count against your IRS contribution limit when you roll over or transfer.
b. 1% Match on eligible annual contributions:
For every dollar you contribute annually up to the limit, Public.com will match 1%. For example, if you contribute a full $7,000 for 2025, you’ll receive an extra $70 as a match. This is credited as interest income.
c. Automated investment plans:
Set up recurring contributions with automatic stops once you reach the IRS annual limit, eliminating worries about exceeding the cap.
d. Broad investment choices:
Choose from thousands of stocks, ETFs, bonds, and even trade options within your IRA, a rare feature among brokerages.
e. Self-directed control or automated management:
Whether you prefer to build custom portfolios yourself or opt for pre-made investment plans, the platform’s flexibility caters to hands-on traders and those who value automation.
f. Fee coverage on transfers:
Public covers transfer-out fees (up to $100 for accounts above $5,000) when you transfer your IRA to Public.com.
g. API for trade automation:
Automate your investment strategies right in your IRA using Public.com’s free-to-use programming API.
h. SIPC protection:
Membership ensures protection of your securities up to $500,000, including $250,000 in claims for cash.
For more details, check our Public IRA.
Example scenarios for Roth IRA contribution
Example 1: Full Roth IRA contribution
Scenario: Single Filer, Age: 45, MAGI: $140,000
You can contribute the full $7,000, as your income is below the phase-out threshold.
Example 2: Ineligible for direct Roth IRA
Scenario: Single Filer, Age: 52, MAGI: $180,000
This MAGI is above the $165,000 cap for single filers, meaning you can’t make direct Roth IRA contributions for 2025. However, options like a “backdoor Roth” may allow you to access Roth benefits via a traditional IRA, but rules are strict—verify IRS guidance for your situation.
Conclusion
In 2025, maximizing your Roth IRA means closely monitoring contribution rules and income limits. Here are the key takeaways:
- Contribution limit: $7,000 if you’re under 50; $8,000 if you’re 50 or older
- MAGI phase-out (Single): Starts at $150,000; ends at $165,000
- MAGI phase-out (Married filing jointly): Starts at $236,000; ends at $246,000
- Contribution deadline: April 15, 2026
If your income changes or you’re managing multiple accounts, you may review the IRS guidelines before contributing. When in doubt, consult a tax advisor to ensure your strategy aligns with current rules.
Frequently asked questions
Can I contribute to a Roth IRA if I’m retired?
Yes, as long as you have earned income and meet the income requirements, you can contribute to a Roth IRA at any age.
What happens if I go over the IRA contribution limit?
You may face a 6% penalty each year the excess remains. You may need to recharacterize excess contributions or withdraw them before the tax deadline to avoid penalties. The IRS provides worksheets and calculators to assist, and major brokerages will notify you if your contributions exceed the IRS cap.
When is the last day to contribute to my Roth IRA for 2025?
April 15, 2026 is the last day to contribute for 2025 IRAs, which lines up with the standard IRS tax filing deadline.
Do rollover contributions count against the limit?
No, rollovers from a 401(k) or traditional IRA to a Roth IRA don’t count toward your annual Roth IRA contribution limit.
Can you contribute to both a Roth IRA and a 401(k) in the same year?
Yes. Contribution limits for Roth IRAs and 401(k)s are separate. You can fund both if you meet Roth IRA income rules.
What types of income qualify for Roth IRA contributions?
Only earned income like wages or salaries, tips, commissions, or bonuses, and self-employment income qualify for a contribution. Passive income, like rental income, dividends, or interest, doesn’t count.
