Each year, you can contribute up to the annual limit to a traditional or Roth IRA—or a combination of both. But once the deadline passes, that opportunity is gone forever. For 2025 contributions, the deadline is April 15, 2026. Depending on your situation, you may be able to deduct all or part of your contribution and reduce your tax bill. Even if you can’t deduct it, contributing still offers long-term benefits.
Contribution Limits for 2025
The maximum IRA contribution for 2025 is $7,000. If you’re age 50 or older, you can add a $1,000 catch-up contribution. Contributions generally can’t exceed your earned income, but spousal IRAs allow contributions for a nonworking spouse based on the working spouse’s income.
The $7,000 limit applies across both traditional and Roth IRAs combined. For example, you could contribute $7,000 to a traditional IRA, $7,000 to a Roth IRA, or split the amount between the two.
Deductibility of Traditional IRA Contributions
Traditional IRA contributions may reduce your current tax bill, and earnings grow tax-deferred. Withdrawals, however, are taxed and may face a 10% penalty if taken before age 59½ (unless exceptions apply).
You can make a fully deductible contribution if neither you nor your spouse participates in an employer-sponsored retirement plan. If you do, deductibility phases out based on income. For 2025, the ranges are:
- Single/Head of Household: $79,000–$89,000
- Married Filing Jointly (covered by a plan): $126,000–$146,000
- Married Filing Jointly (spouse covered, you not): $236,000–$246,000
- Married Filing Separately: $0–$10,000
Eligibility for Roth IRA Contributions
Roth contributions aren’t deductible, but qualified withdrawals are tax-free if the account has been open at least five years and you’re age 59½ or older. For 2025, income limits apply:
- Single/Head of Household: $150,000–$165,000
- Married Filing Jointly: $236,000–$246,000
- Married Filing Separately: $0–$10,000
Nondeductible Traditional IRA Contributions and the Backdoor Roth
If your income is too high for deductible or Roth contributions, you can still make a nondeductible traditional IRA contribution. While it won’t lower your taxes now, it grows tax-deferred. Withdrawals in retirement are partly tax-free, since contributions were made with after-tax dollars.
This strategy also enables the “backdoor Roth IRA.” You contribute to a traditional IRA, then convert it to a Roth. Normally, conversions are taxable, but in this case only growth between contribution and conversion is taxed.
Key Takeaway
Making a 2025 IRA contribution can save you taxes now or later, while giving your money the chance to grow tax-deferred or tax-free. Just remember: the deadline is April 15, 2026, even if you file an extension. Be sure to designate the contribution for 2025, not 2026.