The IRS announces income limits for Roth Individual Retirement Accounts in 2025.

• The Roth IRA contribution limits for 2025 remain the same as in 2024, at $7,000 for those under 50 and $8,000 for those 50 and older.
• The income phase-out for taxpayers making contributions to a Roth IRA increased.

The Roth IRA contribution and income limits for 2025 have been announced by the IRS.

The IRS has announced that the total contribution limit to Roth IRAs for 2025 will remain at $7,000, the same as in 2024. Additionally, catch-up contributions for those aged 50 and above will also remain at $1,000.

Income thresholds for taxpayers making Roth contributions increased.

New 401(k) contribution and catch-up limits have been announced by the IRS for savers aged 50 and above.

The IRS reveals new federal income tax brackets for 2025.

Roth IRA income phase outs for 2025

In order to contribute the maximum amount to a Roth IRA in 2025, your adjusted gross income must fall below a specific threshold.

The income range for taxpayers contributing to a Roth IRA has been increased to between $150,000 and $165,000 for single or head of household filers, from the previous range of between $146,000 and $161,000.

The income phase-out range for married couples filing jointly has been increased to between $236,000 and $246,000, from the previous range of between $230,000 and $240,000.

According to the IRS, the phase-out range for married filing separately is not adjusted for inflation annually and remains between $0 and $10,000.

Mega backdoor Roth conversions can enable higher earners to bypass income limits and shift after-tax 401(k) contributions to a Roth account. However, not all 401(k) plans permit this strategy.

The IRS has recently announced inflation adjustments for 2025, which include changes to federal income tax brackets, capital gains brackets, estate and gift tax exemptions, and eligibility for the earned income tax credit, among other things.

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