Can You Contribute to Both a Traditional and Roth IRA?

Individual Retirement Arrangements (IRAs) offer a popular avenue for individuals to save for their retirement years. These accounts provide distinct tax advantages, serving as a beneficial component of many financial plans. Specific regulations govern how contributions can be made to these accounts. This article clarifies whether individuals can contribute to both Traditional and Roth IRAs in the same year and outlines the specific rules that apply to such contributions.

Combined Annual IRA Contribution Limits

Individuals can contribute to both a Traditional IRA and a Roth IRA within the same tax year. The Internal Revenue Service (IRS) establishes a single, combined annual contribution limit that applies across all IRAs an individual owns. For the 2025 tax year, this limit is $7,000 for individuals under age 50. Those aged 50 and older can make an additional catch-up contribution of $1,000, bringing their total annual limit to $8,000.

For instance, an individual could contribute $3,500 to a Traditional IRA and $3,500 to a Roth IRA, or any other combination, as long as the sum does not surpass the annual maximum. The deadline to make contributions for a given tax year is the federal tax-filing deadline of the following year, usually April 15.

Traditional IRA Deductibility Rules

Contributions made to a Traditional IRA may offer an immediate tax deduction, but this deductibility depends on specific factors. A primary consideration is whether the individual, or their spouse if filing jointly, is covered by a retirement plan through their workplace, such as a 401(k) or 403(b). If neither spouse is covered by a workplace retirement plan, Traditional IRA contributions are fully deductible, regardless of income. This allows for a reduction in taxable income for the year the contribution is made.

However, if an individual is covered by a workplace retirement plan, the ability to deduct Traditional IRA contributions is subject to Modified Adjusted Gross Income (MAGI) thresholds. For single filers covered by a workplace plan in 2025, a full deduction is available if their MAGI is $79,000 or less. A partial deduction applies for MAGI between $79,000 and $89,000, with no deduction allowed for MAGI of $89,000 or more. For married couples filing jointly where the contributor is covered by a workplace plan, the full deduction is available for MAGI of $126,000 or less. A partial deduction applies for MAGI between $126,000 and $146,000, and no deduction for MAGI of $146,000 or more.

If one spouse is covered by a workplace plan but the other is not, the non-covered spouse may still fully deduct their Traditional IRA contributions if their joint MAGI is $236,000 or less. A partial deduction applies for joint MAGI between $236,000 and $246,000, and no deduction is allowed for joint MAGI of $246,000 or more. Even if contributions are not deductible, non-deductible Traditional IRA contributions are still permitted.

Roth IRA Income Limitations

Unlike Traditional IRAs, direct contributions to a Roth IRA are subject to specific income limitations based on an individual’s Modified Adjusted Gross Income (MAGI). There are no income limits for contributing to a Traditional IRA, although deductibility may be affected. For Roth IRAs, if an individual’s MAGI exceeds certain thresholds, their ability to contribute directly to the account may be reduced or eliminated entirely. This is because Roth IRA contributions are made with after-tax dollars, and qualified withdrawals in retirement are tax-free.

For the 2025 tax year, single filers and those filing as head of household can make a full Roth IRA contribution if their MAGI is less than $150,000. A partial contribution is allowed for single filers with MAGI between $150,000 and $165,000, with no direct contribution permitted if MAGI is $165,000 or more. For married couples filing jointly, a full contribution is possible if their MAGI is less than $236,000. They can make a partial contribution if their MAGI falls between $236,000 and $246,000, but no direct contribution is allowed if their MAGI is $246,000 or more. Married individuals filing separately face much lower limits; if they lived with their spouse at any point during the year, their direct contribution is phased out with a MAGI of $0 to $10,000, and no contribution is allowed if their MAGI is $10,000 or more.

Managing Combined IRA Contributions

When contributing to both Traditional and Roth IRAs, careful planning is required for how contributions are allocated between the two IRA types. The decision to prioritize one over the other often hinges on an individual’s current income level and their expectations for future tax rates.

For instance, if an individual expects to be in a lower tax bracket during retirement, contributing to a Traditional IRA might be more advantageous for the immediate tax deduction. Conversely, if higher future tax rates are anticipated, a Roth IRA’s tax-free withdrawals in retirement could be more beneficial. Contributing more than the allowed combined limit results in an excess contribution, which incurs a 6% excise tax annually on the excess amount for each year it remains in the account. To avoid this penalty, excess contributions and any attributable earnings must be removed by the tax-filing deadline, including extensions. If an excess contribution is made across both IRA types, IRS regulations require the excess to be removed from the Roth IRA first.