An IRA (Individual Retirement Account) is the most flexible retirement account most Americans have access to. Unlike a 401(k), you choose the brokerage, the investments, and you control everything. The limits and rules are often misunderstood — here's the clear version.
2025 IRA Contribution Limits
- •Annual limit: $7,000 (same as 2024)
- •Catch-up contribution (age 50+): additional $1,000 → total $8,000
- •Contribution deadline: Tax filing deadline — April 15, 2026 for 2025 contributions
- •You can contribute to both a traditional AND Roth IRA, but the combined total cannot exceed $7,000
Roth IRA Income Limits 2025
- •Single filers: Full contribution if MAGI under $150,000; phase-out $150,000–$165,000; no contribution above $165,000
- •Married filing jointly: Full contribution under $236,000; phase-out $236,000–$246,000; no contribution above $246,000
- •High earners: Use the backdoor Roth IRA strategy (contribute to traditional IRA, then convert)
Traditional IRA Deduction Limits 2025
Anyone can contribute to a traditional IRA regardless of income. But if you (or your spouse) have a workplace retirement plan, the deduction phases out: single filers $79,000–$89,000; married filing jointly $126,000–$146,000. Above these limits, contributions are non-deductible but still grow tax-deferred.
Even if you can't deduct a traditional IRA contribution, contributing still makes sense — tax-deferred growth compounds more powerfully than taxable accounts. Or, convert the non-deductible traditional IRA to Roth immediately (the backdoor Roth).
The rule of thumb: If you expect to be in a higher tax bracket in retirement → Roth IRA now. If you expect lower tax bracket → Traditional IRA. If unsure → Roth (flexibility is worth something).