Seeking financial security in your later years? One effective way to achieve this is by saving for retirement. Among the various options available, traditional and Roth individual retirement accounts (IRAs) are two of the most effective tools as they promote disciplined savings and offer tax benefits that can significantly impact your financial future—whether you prefer upfront tax savings or tax-free income during retirement.

Given specific rules outlining how much you can contribute to these accounts as well as eligibility criteria for 2025, it’s essential to stay informed about traditional and Roth IRA contribution limits to maximize your contributions and avoid potential penalties.

2025 IRA contribution limits: an overview

Retirement savings calls for careful planning and an understanding of the tools available. A good starting point? Knowing how much you can contribute this year and staying updated on 2025 contribution limits that may differ slightly from previous years.

The IRS set the maximum traditional and Roth IRA contribution limit to $7,000 for 2025, with individuals under the age of 50 able to contribute this amount across all IRA accounts (whether to one type of IRA or split between both a traditional and Roth IRA). Those age 50 or older, meanwhile, can make an additional "catch-up" contribution of $1,000—bringing the total allowable contribution to $8,000 for the year—to specifically help pre-retirees boost their savings during their peak earning years. Catch-up contributions can make a huge impact when it comes to building retirement savings among those who qualify.

Keep in mind these limits apply to the total amount contributed to all IRAs combined (rather than each account individually), and contributions can't surpass one’s taxable income for the year; if you earn $6,000 in 2025, for example, that's the maximum amount you can contribute to all IRA accounts. Also know you can continue to make contributions for the previous year up until the income tax deadline—doing so (in any amount, up to the limit) for 2025 until April 15, 2026.

These contribution limits are designed to encourage saving for retirement while simultaneously offering tax benefits, so be sure to make the most out of your savings and avoid penalties for over-contributing (which can incur a 6% fee on excess contributions each year until they’re withdrawn).

Roth IRA contribution eligibility

Income thresholds matter for 2025 Roth IRA contribution limits. Unlike with traditional IRAs (wherein anyone can contribute regardless of income), specific income limits for Roth IRAs can either reduce or eliminate one’s ability to contribute based on earnings. This is precisely where one’s modified adjusted gross income (MAGI) comes into play, reflecting gross income with specific deductions added back in (e.g., IRA contributions, rental losses, qualified tuition expenses, etc.). This figure determines if you’re qualified to make full, partial, or no contributions to a Roth IRA.

Income thresholds determining Roth IRA contribution eligibility are broken down into three categories as follows for 2025:

Full contribution: Those with a MAGI below the specified lower end of the income bracket can contribute the full limit to a Roth IRA.
Partial contribution: Those with a MAGI falling between lower and upper limits can make a partial contribution (contributing less than the maximum allowed).
No contribution: Those with a MAGI exceeding the upper limit aren’t eligible to contribute to a Roth IRA in 2025.

Moreover, income thresholds differ depending on whether you’re filing as a single individual or as part of a married couple (further broken down as follows):

2025 Roth IRA contribution income thresholds

Anyone whose income exceeds IRS thresholds for Roth IRA contributions should consider a backdoor Roth IRA, which often requires converting a portion or all of traditional IRA funds to a Roth IRA.

Traditional IRA tax deduction eligibility

Anyone can open and fund a traditional IRA account no matter how much income they report; but if you’re seeking tax-deductible contributions, know the IRS does have income restrictions based on how much you earn and whether you or your spouse currently participate in other qualified retirement plans (e.g., a 401(k)).

As with Roth IRAs, these income thresholds are divided into three categories (per the following breakdown based on filing status and employer-sponsored plan coverage).

2025 traditional IRA deduction eligibility income thresholds

Remember: Those not covered by a retirement plan at work can deduct the full contribution regardless of income. Do note, however, that if only one spouse has access to a retirement plan at work, the other spouse can still make a full deduction for incomes falling below $236,000 for 2025 (among married couples filing jointly); deductions aren’t allowed for incomes exceeding this limit.

Traditional vs Roth IRAs: key differences

So, which one is better: traditional or Roth IRAs? The answer unfortunately isn't so straightforward as these two retirement accounts have unique benefits, so understanding key differences can help determine which one is best for your own personal situation.

With this in mind, let's explore traditional and Roth IRAs based on tax treatment, withdrawal rules, and contribution flexibility.

Tax treatment

Traditional IRA contributions are made pre-tax (before taxes), resulting in an immediate tax deduction but the need to pay taxes upon withdrawing the money in retirement.
Roth IRA contributions are made after taxes, meaning you won’t get a tax break now, but the money grows and is withdrawn tax-free in retirement (provided certain conditions are met).

Withdrawal rules

Traditional IRAs dictate you take required minimum distributions (RMDs) beginning at age 73. Withdrawing before age 59½, meanwhile, can trigger a penalty along with regular income tax.
Roth IRAs don’t require RMDs during one’s lifetime, and you can withdraw contributions at any time tax and with no penalties. Those age 59½ or older who’ve owned the account for at least five years can make tax-free withdrawals (known as the “five-year rule”).

Contribution flexibility

While there is no age limit dictating one stop contributing to a traditional or Roth IRA, many investors choose the former over the latter as they believe they’ll fall into a lower income tax bracket during retirement: assuming they can take advantage of tax-deferral benefits, with withdrawals taxed at a lower rate.

While it is feasible to assume gross income will decrease in retirement, this doesn’t necessarily mean taxable income will as well. When considering various income sources—such as Social Security benefits, freelance or part-time work, and other investments—it becomes clear that future income is indeed challenging to predict. It’s thus sometimes wise to invest in both a traditional and Roth IRA as this strategy provides tax diversification, with some assets fully taxed upon withdrawal and others remaining tax-free.

Spousal IRA rules mirror Roth and traditional IRAs

If you’re married and your spouse doesn’t work (or earns a very modest income), you can help him or her save for retirement by contributing to a spousal IRA: a typical Roth or traditional IRA subject to identical contribution limits, income limits, catch-up contributions, and other rules but opened by your spouse (in his or her name and with a few distinct eligibility requirements you can read about here).

In sum: 2025 IRA contribution limits

In 2025, those under the age of 50 can contribute up to $7,000 to either a traditional or Roth IRA whereas those aged 50+ can contribute $8,000. While one’s overall ability to contribute to a Roth IRA depends on income, traditional IRA tax deductions are also limited by income and workplace-sponsored retirement plans.

Still have questions about IRAs or your investments in general? Schedule a FREE discovery call with one of our CFP® professionals so we can help!

Traditional and Roth IRA 2025 Contribution Limits