As a general rule, you have until tax day to make IRA contributions for the prior year. In 2025, that means you can contribute toward your 2024 tax year limit of $7,000 until April 15. And as of Jan. 1, 2025, you can also make contributions toward your 2025 tax year limit of $7,000 until tax day in 2026. If you need help figuring out how an IRA can help with your retirement goals, consider working with a financial advisor.
What Is an IRA?
An IRA is a tax-advantaged retirement account that is mainly used by people who freelance or are self-employed. Workers with traditional jobs can also use it to supplement any benefits that they may receive through their employer. You should note, however, that the IRS does not consider rents, dividends, interests, pensions, deferred compensations and other incomes as eligible compensation for IRA contributions.
In a traditional IRA you make contributions with pre-tax dollars, then pay taxes on all profits from this account when you withdraw the money in retirement. In a Roth IRA, you pay taxes on the income you put in but pay none when make qualified withdrawals. That is, you pay no taxes on the account’s profits.
The IRS sets annual IRA contribution limits, income thresholds and deadlines for your account.
IRA Contribution Limits for 2024 and 2025
The contribution limit sets how much you can contribute to a qualifying IRA plan every year. You cannot make contributions to a Roth IRA past the limit. However, for traditional IRAs, you can continue to invest money above the limit but will lose the income tax deduction.
For tax years 2024 and 2025, the IRS published the following limits on IRAs:
2024 Tax Year
- Standard Contribution Limit: $7,000 per taxpayer 49 and younger
- Catch-Up Contribution Limit: $1,000 per taxpayer 50 and older
2025 Tax Year
- Standard Contribution Limit: $7,000 per taxpayer 49 and younger
- Catch-Up Contribution Limit: $1,000 per taxpayer 50 and older
These limits apply to all IRA accounts for an individual taxpayer. This means that a single taxpayer could split up to the limit for each year between their Roth IRA and traditional IRA. A married couple could invest up to double the amount of the limit in their combined accounts. Past this cap, you can continue making contributions to a traditional IRA but must do so with post-tax dollars.
It is important to note that the contribution limit is per taxpayer, not per account. So if you have both a traditional IRA and a Roth IRA you must split your contributions across both accounts up to the limit. Married couples filing jointly can each maximize their contributions.
Keep in mind that you can only contribute to an IRA with earned income. This means that you cannot use income from sources such as investments, dividends or excess student loan money.
How IRA Income Thresholds Work
The income thresholds for an IRA define how much of the contribution limit you are allowed to use. This is because the IRS phases out some of the tax advantages of an IRA for wealthier savers. As you earn more money, the government decides that you need less help saving for retirement. However, if neither you nor your spouse is enrolled in an employer retirement plan such as a 401(k), you can always make the full IRA contribution regardless of income.
The IRA contribution limit is also adjusted by the age of the taxpayer. Older taxpayers can invest more in their retirement accounts. This is known as the catch-up contribution limit and applies to savers age 50 and older.
IRA Contribution Deadlines for 2024 and 2025
You should also note that the IRA contribution deadline for a given year isn’t Dec. 31. Instead, contributions for the current year can be made as late as Tax Day of the following year.
This extended deadline allows you to make your contributions until the following year’s tax deadline, which will give you a four-month overlap to take advantage of either year’s contribution limits for your IRA.
For 2024, taxpayers began making contributions toward that tax year’s limit as of Jan. 1, 2024. This deadline expires when 2024 taxes are due on April 15, 2025. And as of Jan. 1, 2025, taxpayers can also make contributions toward their 2025 tax year limit until Tax Day 2026.
Traditional IRA Income Thresholds for 2024 and 2025
Your income, your marital status and whether you participate in an employer-sponsored retirement plan dictates whether you qualify to make a fully deductible contribution to an IRA. If you qualify for a reduced contribution, you can find further guidance in Worksheet 1 of IRS Publication 590-A.
Firstly, let’s say you are single and do not participate in an employer-sponsored retirement plan, or you are married and neither you nor your spouse participates in an employer-sponsored retirement plan. For tax years 2024 and 2025, there is no income threshold for contributing to a traditional IRA.
Here are the income limits if you participate in an employer-sponsored retirement plan:
If you are a single filer, you can make a fully deductible IRA contribution if you have an AGI of less than $77,000 in 2024 and $79,000 in 2025. You can make a partially deductible contribution if you have an AGI between $77,000 and $87,000 in 2024 and between $79,000 and $89,000 in 2025.
For married couples, you can make a fully deductible contribution if you have an AGI of less than $123,000 in 2024 and $126,000 in 2025. You can make a partially deductible contribution if you have an AGI between $123,000 and $143,000 in 2024 and between $126,000 and $146,000 in 2025.
Roth IRA Income Thresholds for 2024 and 2025
The income limits for a Roth IRA apply to all taxpayers. It doesn’t matter whether you participate in an employer-sponsored retirement plan or not. As noted above, if you qualify for a reduced contribution limit, you can find further guidance in Worksheet 1 of IRS Publication 590-A.
Roth IRA Income Thresholds
| Tax Payer Status | 2025 Income Limits | 2024 Income Limits |
| Single Filer | You can make a full contribution if you have an AGI of less than 150,000. You can make a partial contribution if you have an AGI of between $150,000 and $165,000. But you can make no qualifying contributions if you have an AGI above $165,000. | You can make a full contribution if you have an AGI of less than $146,000. You can make a partial contribution if you have an AGI of between $146,000 and $161,000. But you can make no qualifying contributions if you have an AGI above $161,000. |
| Married, Filing Jointly | You can make a full contribution if you have an AGI of less than $236,000. You can make a partial contribution if you have an AGI between $236,000 and $246,000. But you can make no qualifying contributions if you have an AGI above $246,000. | You can make a full contribution if you have an AGI of less than $230,000. You can make a partial contribution if you have an AGI between $230,000 and $240,000. But you can make no qualifying contributions if you have an AGI above $240,000. |
| Married, Filing Separately | You cannot make a full contribution. You can make a partial contribution if you have an AGI of between $0 and $10,000. But you can make no qualifying contributions if you have an AGI above $10,000. | You cannot make a full contribution. You can make a partial contribution if you have an AGI of between $0 and $10,000. But you can make no qualifying contributions if you have an AGI above $10,000. |
IRA Contribution Rules for Members of the Military
Members of the military who serve in a combat zone or who provide otherwise qualifying service receive an extension to making contributions to their IRA under the previous year’s limits. This extension is typically within 180 days of:
- Completing service within a combat zone, completing qualifying service outside of a combat zone; or
- Release from continuous, qualified medical care after having served in a combat zone.
How to Maximize Your IRA Contributions in 2025
Saving money for retirement as early as possible is key to building a successful nest egg. The earlier you start contributing to an IRA, the longer your money has to grow through compounding interest. One common approach is to automate your contributions. This way, a portion of your paycheck goes directly into your IRA each month.
As you get closer to retirement, you should keep closer track of how much you’ve saved and try to maximize your IRA contributions. If you are over 50, you can take advantage of catch-up contributions to save more than the standard limit.
And once you’ve retired, if you still earn income, you can keep adding to your IRAs to further grow their retirement funds.
When developing a strategy for your contributions, you may want to plan for taxes, withdrawals and market changes. You can do this by diversifying your investments to mitigate market risks, timing your withdrawals to minimize tax impacts, and adjusting your contributions based on tax changes and financial needs.
Bottom Line
The IRA contribution amounts and income thresholds are increasing from 2024 to 2025. It’s important to pay attention to these limits so that you maximize the contribution you’re able to make. Keep in mind that the deadline to contribute for a year does not end until Tax Day in April of the following year, which typically gives you an additional 3 ½ months to make your contributions.
Tips for Saving for Retirement
- A financial advisor can help you plan and save for retirement. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- When planning for retirement, make sure you do your research to pick the best retirement choice for your needs. Here’s a breakdown of IRAs vs. 401(k)s.
- If you’re 50 or over, take advantage of catch-up contributions. Catch-up contributions are a great way to boost your savings, whether you got a late start or haven’t saved as much as you’d hoped. Use SmartAsset’s retirement calculator to ensure you’re saving enough to retire comfortably.
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