Can I contribute to a Roth IRA if I am covered by a 401(k) at work?

Yes — being covered by a workplace retirement plan (401k, 403b) does not affect your eligibility to contribute to a Roth IRA. The Roth IRA income limits are separate from 401(k) participation. You can contribute to both your 401(k) and Roth IRA in the same year (subject to the Roth IRA income limits).

What counts as earned income for Roth IRA contributions?

Earned income includes: wages, salaries, tips, self-employment income, and net earnings from self-employment. It does NOT include: pension or annuity income, interest and dividends, Social Security benefits, rental income (unless you are a real estate professional), or capital gains. You need earned income to contribute to any IRA.

Can I contribute the full $7,000 in one payment or must I spread it out?

You can contribute the full $7,000 in a single lump sum on January 1 or spread it across the year — whatever works for your cash flow. From a growth perspective, contributing early in the year (lump sum in January) is slightly better than spreading monthly, because the money compounds for longer. In practice, most savers do monthly automatic contributions.

What if I contributed too much to my Roth IRA?

An excess contribution — any amount above your eligible limit — is subject to a 6% excise tax for each year it remains in the account. To fix this: withdraw the excess contribution plus any earnings on it before the tax deadline (including extensions). The earnings are taxable income. If you miss the deadline, you can also 're-characterize' to a traditional IRA or apply the excess to the following year’s limit.

Do Roth IRA contribution limits apply to rollovers?

No — the annual contribution limit ($7,000/$8,000) applies only to new contributions. Rollovers from 401(k) plans or other IRAs to a Roth IRA (Roth conversions) are not subject to the annual contribution limit. You can roll over or convert any amount, regardless of the annual limit — though conversions are taxable events.

Roth IRA Contribution Limits for 2025: Complete Guide

The 2025 Roth IRA contribution limit is $7,000 per person, or $8,000 if you are 50 or older. But the limit that actually applies to you depends on your Modified Adjusted Gross Income — earn too much and your ability to contribute directly to a Roth IRA phases out entirely. Here is what you need to know for 2025.

2025 Roth IRA Contribution Limits

2025 Roth IRA contribution limits by age

Age Group	Maximum Annual Contribution	Per Month (Divided Evenly)
Under age 50	$7,000	$583.33/month
Age 50 or older (catch-up)	$8,000	$666.67/month

ℹ️Contribution Deadline Is Tax Day

You can contribute to your 2025 Roth IRA any time from January 1, 2025 through April 15, 2026 (the federal tax return deadline). This gives you 15+ months to make the full contribution. Many savers use the previous year’s tax refund to fund the prior year’s Roth IRA contribution.

Income Limits: 2025 Phase-Out Ranges

2025 Roth IRA income limits and phase-out ranges by filing status

Filing Status	Full Contribution MAGI Limit	Phase-Out Range	No Contribution Above
Single / Head of Household	Under $150,000	$150,000-$165,000	$165,000
Married Filing Jointly	Under $236,000	$236,000-$246,000	$246,000
Married Filing Separately (lived together)	$0	$0-$10,000	$10,000

Calculating Your Reduced Contribution in the Phase-Out

If your MAGI falls in the phase-out range, your Roth IRA contribution limit is reduced proportionally. The formula: Reduced Limit = Full Limit × (Phase-out ceiling - Your MAGI) ÷ Phase-out range width. For single filers in 2025: the range is $15,000 wide ($150,000 to $165,000). Example: MAGI of $157,500 is $7,500 into the range. Reduction = $7,000 × ($7,500 ÷ $15,000) = $3,500 reduction. You can contribute $3,500.

Rules for Contributing to a Roth IRA

You must have earned income (wages, self-employment) at least equal to your contribution
Your contribution cannot exceed your taxable compensation for the year
Married couples can each contribute to their own Roth IRA — $7,000 × 2 = $14,000 combined
A non-working spouse can contribute if the working spouse has sufficient earned income (spousal IRA rule)
You can contribute to both a Traditional IRA and a Roth IRA in the same year, but total contributions cannot exceed the $7,000/$8,000 limit
Excess contributions (above your eligible limit) are subject to a 6% excise tax each year they remain in the account

Project Your 2025 Roth IRA Growth

Enter your 2025 contribution and expected return to see your tax-free retirement savings projection.

Open Roth IRA Calculator →