How Much Can You Contribute to Your Retirement Plan in 2025?

Good news for 2025: The MAGI phaseout range limitations related to IRAs are set to rise:

Traditional IRAs.

Deductibility of contributions is ruled by MAGI phaseout ranges; this applies to taxpayers (or their spouses) engaged in employer-backed retirement plans:

For couples filing together, spouse-specific phaseout ranges are dependent on participation in an employer-backed scheme:

• The spouse involved will see an increase of $3,000 in the 2025 phaseout range limits, rising to $126,000–$146,000.
• The 2025 phaseout range limit for a non-participating spouse will increase by $6,000, reaching $236,000–$246,000.

For single and head-of-household taxpayers involved in employer-backed schemes, 2025 phaseout range limits will rise by $2,000 to reach $79,000–$89,000.

For taxpayers falling within the applicable MAGI range, partial contribution deductions are permitted; however, if their MAGI exceeds the applicable range, no IRA contribution deductions can be made.

Those unable to deduct could opt for non-deductible traditional IRA contributions, adhering to the $7,000 contribution limit for 2025 (with a $1,000 catch-up, if appropriate, minus any Roth IRA contributions). If your MAGI is too high for a Roth IRA (or full) contribution, non-deductible traditional IRA contributions could be useful.

Roth IRAs.

Employer-sponsored plan participation doesn’t affect your capacity to contribute to a Roth IRA, though MAGI limits might reduce or nullify your ability to do so:

For couples filing jointly, the 2025 phaseout range limits are set to rise by $6,000 to $236,000–$246,000.

For single and head-of-household taxpayers, the 2025 phaseout range limits will grow by $4,000 to $150,000–$165,000.

If your MAGI falls within the applicable range, partial contributions can be made, but none if the range’s upper limit is surpassed.

(Please note: Lower phaseout ranges apply to married taxpayers filing separately for both traditional and Roth IRAs.)

Reviewing your retirement plan

To maintain progress towards your retirement goals, it’s advisable to consider these 2025 inflation-adjusted contribution limits. We can assist in examining your plans and making any necessary changes.