What Are the AGI Limits for a Roth IRA?

A Roth Individual Retirement Arrangement (IRA) is a retirement savings account with tax-free growth and withdrawals. Contributions are made with after-tax money. However, your ability to contribute directly is limited by your income, as the Internal Revenue Service (IRS) sets annual limits that determine if you can contribute the full amount, a partial amount, or nothing at all.

Calculating Your Modified Adjusted Gross Income

To determine your eligibility, you must calculate your Modified Adjusted Gross Income (MAGI). The starting point is your Adjusted Gross Income (AGI) from line 11 of your Form 1040. AGI is your gross income minus certain “above-the-line” deductions, such as those for traditional IRA contributions or student loan interest.

For Roth IRA purposes, MAGI adjusts your AGI by adding back specific deductions. You begin with your AGI and add back any deductions taken for traditional IRA contributions, student loan interest, and certain foreign earned income or housing exclusions.

For many taxpayers, AGI and MAGI are identical if they have not taken these specific deductions. For example, if your AGI is $90,000 and you deducted $2,500 for student loan interest, your MAGI for Roth IRA purposes is $92,500. This MAGI figure is what the IRS compares against its income thresholds.

Roth IRA Contribution and Income Limits

For 2025, the maximum contribution to all your IRAs (Roth and traditional) is $7,000 if you are under age 50. Individuals age 50 and over can make an additional “catch-up” contribution of $1,000, for a total of $8,000.

Your eligibility to contribute depends on your MAGI and tax filing status for 2025. Single filers can contribute the full amount with a MAGI below $150,000, while joint filers can do so with a MAGI below $236,000. The contribution amount is reduced for single filers with a MAGI between $150,000 and $165,000 and for joint filers with a MAGI between $236,000 and $246,000.

If your MAGI is above these ranges, you cannot contribute directly. A restrictive range of $0 to $10,000 applies to those who are married filing separately and lived with their spouse.

Determining Your Maximum Contribution Amount

If your MAGI falls within the phase-out range, your contribution limit is reduced. To calculate your partial contribution, you can use the worksheet in IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs).

The calculation involves subtracting the lower limit of the phase-out range from your MAGI. You then divide that result by the size of the range ($15,000 for single filers, $10,000 for joint filers). This decimal is multiplied by the maximum annual contribution to find the amount your contribution is reduced by.

For instance, a single filer under 50 with a MAGI of $153,000 would subtract $150,000, leaving $3,000. Dividing $3,000 by the $15,000 range equals 0.20. Multiplying 0.20 by the $7,000 maximum contribution gives a reduction of $1,400, making their allowed contribution $5,600.

Contribution Strategies for High-Income Earners

Individuals whose MAGI exceeds the contribution threshold can use a strategy known as a “backdoor” Roth IRA to fund the account indirectly. This method has no income limitations and involves two main steps.

The first step is to make a non-deductible contribution to a Traditional IRA. This is available to anyone with earned income and is reported on IRS Form 8606, Nondeductible IRAs.

Shortly after, the second step is to convert the funds from the Traditional IRA to a Roth IRA, which is also documented on Form 8606. If the Traditional IRA only holds the new, non-deductible contribution, the conversion is generally tax-free.

A complication arises if you have other Traditional, SEP, or SIMPLE IRAs with pre-tax funds. The IRS pro-rata rule requires the conversion to consist of a proportional mix of pre-tax and after-tax dollars, which can make a portion of the converted amount taxable.

Handling Excess Contributions

Contributing more to your Roth IRA than allowed results in an excess contribution, which can happen if your income is higher than expected. The IRS imposes a 6% excise tax on the excess amount for each year it remains in the account.

To avoid the 6% penalty, you must withdraw the excess contribution and any earnings on it by the tax filing deadline for that year, including extensions. For an excess contribution made in 2024, you would need to withdraw it by April 15, 2025, or October 15, 2025, with an extension. The withdrawn earnings are considered taxable income.

If you miss the deadline, you will owe the penalty for that year but can still correct it for future years by withdrawing the excess amount. Another option is to apply the excess contribution to a subsequent year’s limit, if you are eligible to contribute in that year.