2025 Roth IRA Income Phase-Out: Complete Table
2025 Roth IRA contribution phase-out by filing status
| Filing Status | Full Limit Below | Phase-Out Range | Zero Contribution Above | Phase-Out Per $1,000 Income |
|---|---|---|---|---|
| Single | $150,000 | $150,000-$165,000 | $165,000 | $467 reduction |
| Married Filing Jointly | $236,000 | $236,000-$246,000 | $246,000 | $700 reduction |
| Head of Household | $150,000 | $150,000-$165,000 | $165,000 | $467 reduction |
| Married Filing Separately (lived with spouse) | $0 | $0-$10,000 | $10,000 | $700 reduction |
Modified Adjusted Gross Income (MAGI) for Roth IRA purposes = AGI + certain deductions added back (student loan interest, IRA deductions, foreign earned income). For most W-2 employees, MAGI closely equals your W-2 income plus investment income. Pre-tax 401(k) contributions DO reduce MAGI, which can push income below phase-out thresholds.
Strategies to Get Below the Income Limit
- Maximize pre-tax 401(k) contributions — $23,500 in 2025 ($31,000 if 50+) — reduces MAGI directly
- HSA contributions (if on an HDHP) reduce MAGI — up to $4,300 (self) or $8,550 (family) in 2025
- Traditional IRA deduction: if deductible, reduces MAGI (income limits apply; may not be deductible at high income)
- Self-employed: maximize business deductions and SEP IRA contributions to reduce net self-employment income
- Defer year-end bonuses to push income to the following year if near a phase-out threshold
What to Do If You Exceed the Income Limit
If your MAGI exceeds the Roth IRA income limit, direct contributions are not allowed. Your options: (1) Use the backdoor Roth IRA strategy — contribute to a non-deductible Traditional IRA then convert it to Roth, (2) Ask your employer for a Roth 401(k) option — no income limits apply to Roth 401(k), or (3) Accept contributing only to a Traditional 401(k) and plan for Roth conversions later in retirement.
The Backdoor Roth IRA for High Earners
The backdoor Roth IRA is a two-step workaround: (1) Make a non-deductible contribution to a Traditional IRA — no income limit applies to non-deductible Traditional IRA contributions, (2) Convert the Traditional IRA to a Roth IRA. If you have no other Traditional IRA funds, the conversion is nearly tax-free (you only pay tax on any earnings since the contribution). This strategy is fully legal and endorsed by the IRS.
Backdoor Roth IRA steps for high-income earners
| Step | Action | Tax Consequence |
|---|---|---|
| Step 1 | Contribute $7,000 to Traditional IRA (non-deductible) | No deduction; tracked on Form 8606 |
| Step 2 | Convert Traditional IRA to Roth IRA immediately | Tax only on earnings since contribution (minimal if done promptly) |
| Ongoing | Repeat annually | Annual tax-free conversion if no other IRA funds exist |
Project Your Backdoor Roth IRA Growth
Enter your annual contribution and expected return to see your long-term tax-free accumulation.