Projected IRA Contribution Limits for 2025
The official word on IRA contribution limits for 2025 wont come out from the IRS until late October or early November of the previous year, but knowing how inflation has been going on can give us a pretty good idea of what to expect. For next year its pretty much a given that the standard IRA contribution limit for under 50 year old will go up from what it was in 2024. Our best guess at the moment is its going to be somewhere between $7,500 & $8,000 per person. If you're over 50 though the catch-up contribution limit is generally expected to go up too, maybe as high as $1500 to $2000 on top of the standard limit, which would put your total contributions at $9,000 to $10,000 per person. You get the picture.
When you're a married couple filing jointly, you can each contribute to your own IRA up to your individual limit. So for a couple who are both under 50 you could be looking at a total of $15,000 to $16,000 in 2025. If you're both over 50 your total could be $18,000 to $20,000. This gives you a really big advantage if you want to get your retirement savings up and running faster.
Understanding Spousal IRA Contributions
One of the really good things for married couples who file jointly is the spousal IRA rule. This lets your working spouse put some money into an IRA on behalf of the other, as long as your filing jointly. You can still put the same amount into the non-working spouses IRA as they would if they were working, its just the working spouse who actually puts in the cash. This way, both partners can be putting their own savings away, even if there is a big difference in income between them.
Anticipating 2026 IRA Contribution Limits
Looking ahead to 2026, we would expect the IRA contribution limits to keep going up, as they always do. Again, its going to be driven by inflation and all the rest, We don't know the exact numbers yet, but its pretty safe to say that couples should be expecting some small increases. This is just another reason why you need to review your retirement plans every year to make sure you're still on track - you don't want to fall behind. Keeping on top of all this will also help you squeeze the most out of your tax-advantaged savings.
Traditional vs Roth IRA: Income Phase-Outs for Joint Filers
Picking between a traditional IRA and a Roth IRA isn't a straightforward decision - you've got to consider where you are financially right now and where you think you'll be in terms of taxes down the line. For couples who file their taxes jointly, income limitations play a pretty big role in determining whether you can deduct Traditional IRA contributions and whether you're eligible to put money into a Roth IRA.
- Traditional IRA Deductibility: If neither of you have a retirement plan through work, like a 401(k), you can put money into a Traditional IRA and deduct it from your taxes, no matter how much you make. But if one or both of you have a workplace plan, things get a little trickier. That's when the rules about deductibility come into play, based on Modified Adjusted Gross Income (MAGI). For 2025/2026, if the numbers don't go down - and they might actually go up - these phase-out ranges for joint filers are projected to reach $120,000 to $140,000 or maybe even higher for partial deductibility and possibly getting completely phased out.
- Roth IRA Eligibility: If you're putting money directly into a Roth IRA, you're subject to MAGI limits. But the good news is these numbers are a lot higher for couples filing jointly than they are for Traditional IRAs. For 2025, the MAGI phase-out for joint filers is thought to start around $230,000 to $240,000, with the phase-out getting complete at even higher income levels. And just like last time, you can bet the numbers will go up for 2026 too. If you're in the higher brackets, you might want to consider a backdoor Roth IRA strategy. That involves putting money into a non-deductible Traditional IRA and then converting it to a Roth IRA.
Putting the Pieces Together for Married Couples
- Max Out Your Contributions: If you and your spouse are both eligible, try to put as much money as possible into both of your IRAs each year - especially if you can take advantage of catch-up contributions.
- Consider Both IRA Options: Think about whether a Traditional IRA makes sense for you right now (you put money in, it grows tax-free, then you have to pay taxes when you take it out) or a Roth IRA (you put money in after taxes, it grows tax-free, then you get to take it out tax-free too). A lot of couples find it works best when they have a mix of both.
- Keep an Eye on Your Income: Keep track of your combined MAGI so you know how it's affecting your Traditional IRA deductibility and Roth IRA eligibility.
- The Backdoor Roth Trick: If you make a lot of money, the backdoor Roth IRA can still be a useful tool to get money into a Roth IRA, even when direct contributions are no longer an option.
- Review and Revise Each Year: Your financial situation and the IRS rules can change pretty quickly, so it's a good idea to review your retirement plan every year to make sure you're on the right track.
By really understanding and making the most of the IRA contribution limits for 2025 and 2026, couples who file jointly can make a big difference in their retirement readiness and set themselves up for a more comfortable financial future down the line.
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