What Are the Current Roth IRA Contribution Limits?

A Roth IRA is a retirement savings account that allows your contributions to grow tax-free. Unlike a traditional IRA, you contribute after-tax dollars, meaning you don’t get a tax deduction for your contributions. The primary benefit is that qualified withdrawals in retirement are completely free from federal income tax. This can be an advantage for those who anticipate being in a similar or higher tax bracket during their retirement years. The funds can generally be withdrawn tax-free and penalty-free after age 59½, provided the account has been open for at least five years.

2025 Roth IRA Contribution Limits

For the 2025 tax year, the maximum amount an individual can contribute to a Roth IRA is $7,000. This limit applies to your total contributions across all of your IRAs, including both Roth and traditional accounts. If you have both types of accounts, your combined contributions cannot exceed this annual maximum. For example, you could put $4,000 into a traditional IRA and $3,000 into a Roth IRA, but not $7,000 into each.

The Internal Revenue Service (IRS) provides a provision for those nearing retirement to save more. Individuals who are age 50 or older during the year are permitted to make an additional “catch-up contribution” of $1,000, bringing their total potential contribution for 2025 to $8,000. You have until the federal tax filing deadline, typically in April of 2026, to make your contributions for the 2025 tax year. Filing for a tax extension does not grant you more time to contribute.

Income Restrictions on Contributions

Eligibility to contribute to a Roth IRA depends on your Modified Adjusted Gross Income (MAGI). The IRS sets specific MAGI phase-out ranges that determine your contribution limit. Your MAGI is your Adjusted Gross Income (AGI) with certain deductions, like student loan interest, added back.

For the 2025 tax year, the MAGI phase-out ranges are:

• Single, Head of Household, or Married Filing Separately (and did not live with your spouse): You can contribute the full amount if your MAGI is less than $150,000. The limit is reduced for a MAGI between $150,000 and $165,000, and you are ineligible to contribute with a MAGI of $165,000 or more.
• Married Filing Jointly or Qualifying Widow(er): You can make a full contribution with a MAGI below $236,000. The phase-out range for a reduced contribution is between $236,000 and $246,000, and you are ineligible with a MAGI of $246,000 or more.
• Married Filing Separately (and lived with your spouse): The phase-out range is $0 to $10,000, making most in this category ineligible to contribute.

Calculating Your Allowable Contribution

If your MAGI falls within the phase-out range for your filing status, your contribution limit is reduced. The IRS provides a specific formula and a worksheet in Publication 590-A to determine your exact allowable contribution. The calculation prorates your limit based on where your income falls within the range. If the final calculated limit is between $0 and $200, you are permitted to contribute $200.

Addressing Excess Contributions

Contributing more to your Roth IRA than allowed results in an excess contribution. Excess contributions are subject to a 6% excise tax for each year they remain in the account. This penalty is calculated on Form 5329 and assessed annually until the excess is corrected.

To avoid the penalty, you must withdraw the excess contribution, plus any net income attributable to it, by the due date of your tax return, including extensions. The earnings withdrawn are considered taxable income for the year the contribution was made. Your IRA custodian can help you calculate the earnings that must be removed.

You can also apply the excess amount to the following year’s contribution limit. For instance, if you over-contributed by $1,000 for 2025, you could reduce your 2026 contribution by that amount. You will still owe the 6% tax for 2025, but this prevents the penalty from recurring. This option is only viable if you are eligible to make a Roth IRA contribution in the following year.