An Individual Retirement Arrangement (IRA) is one of the most powerful tax-advantaged accounts available to working Americans, yet the rules around how much you can actually put in each year are surprisingly easy to get wrong. The dollar limit, the catch-up bonus at age 50, the income phase-out that gradually reduces your Roth space as your salary grows, and the choice between a Traditional (pre-tax) and Roth (after-tax) contribution all interact in ways that are not obvious from a single IRS worksheet.
This IRA contribution calculator takes your age, filing status, modified adjusted gross income (MAGI), marginal tax bracket, and expected return, then tells you exactly how much you are allowed to contribute to a Roth IRA in the current year, how much tax a Traditional IRA contribution would save you right now, and roughly how that money could grow by the time you reach your target retirement age.
How to Use
- Enter your Current Age. The IRS adds a $1,000 catch-up contribution on top of the regular limit once you turn 50, so your age directly changes the cap.
- Pick your Filing Status. Roth IRA income limits are very different for single filers versus married couples filing jointly, so getting this right is essential.
- Type your Modified AGI (MAGI). This is broadly your adjusted gross income before the IRA deduction itself, plus a few add-backs like student loan interest and the foreign earned income exclusion. Pull it from last year's 1040.
- Set your Marginal Tax Bracket — the federal rate on your next dollar of income. This drives the current-year tax savings a Traditional IRA contribution would produce.
- Optionally adjust the Expected Annual Return (the long-run balanced-portfolio assumption, usually 6%–9%) and your Retirement Age.
- Read the result card: the 2025 annual limit, whether your Roth eligibility is Full, Partial, or phased out to zero, your allowed Roth contribution, the immediate Traditional tax savings, and the projected tax-advantaged balance at retirement.
The numbers below the card are estimates based on the 2025 IRS contribution limits and a steady-return annuity model; actual future balances depend on sequence of returns, fees, and future rule changes.
2025 IRA Contribution Limits
For 2025 the IRS raised the annual contribution limit to $7,000 for people under 50. If you are age 50 or older at the end of the calendar year, you can add an extra $1,000 catch-up, for a combined cap of $8,000. This limit applies to the total you can spread across all your Traditional and Roth IRAs combined — you cannot put $7,000 into each.
The contribution limit is not the only gate. Even if you have plenty of cash, the Roth IRA phases out your ability to contribute directly as your income rises:
- Single filers: full Roth contribution allowed when MAGI is at or below $150,000; it shrinks linearly to zero between $150,000 and $165,000; above $165,000 no direct Roth contribution is permitted.
- Married filing jointly: full Roth contribution allowed at or below $230,000; phased out between $230,000 and $240,000; zero above $240,000.
Inside the phase-out band, the IRS rounds the remaining allowed contribution down to the nearest $10 (and allows a $200 final-dollar grace). The calculator applies that same rounding rule.
Traditional vs Roth: What Changes Your Tax Bill?
The two account types share the same annual dollar limit, but the tax timing is inverted:
- Traditional IRA: contributions may be tax-deductible today, lowering this year's taxable income by up to the allowed amount at your marginal bracket. Withdrawals in retirement are taxed as ordinary income.
- Roth IRA: contributions are after-tax (no deduction this year), but qualified withdrawals in retirement — both your contributions and all the decades of growth — are 100% tax-free.
A simple way to think about it: if you expect your tax bracket in retirement to be lower than today's, Traditional is usually the better deal. If you expect your bracket to be the same or higher, Roth is usually better. The calculator shows the current-year tax savings of a Traditional contribution (allowed amount × your marginal bracket) so you can weigh that immediate benefit against the Roth's future tax-free growth. Note that the Traditional deduction itself phases out on a separate schedule once you (or your spouse) have a workplace retirement plan like a 401(k); this estimate assumes you are eligible to deduct the full contribution.
For example, a 35-year-old single filer making $80,000 and in the 25% marginal bracket can contribute the full $7,000 to a Roth. If she instead puts that $7,000 into a deductible Traditional IRA, she saves $7,000 × 25% = $1,750 on this year's tax bill. Invested at a steady 7% for 30 years, that $7,000 annual contribution grows to roughly $661,000 by age 65 — and in a Roth that entire balance comes out tax-free.
Examples
Example 1 — A mid-career professional with full Roth space. Age 35, single, MAGI $80,000, 25% marginal bracket, 7% expected return, planning to retire at 65. She is below the $150,000 Roth floor, so the full $7,000 is allowed. The calculator shows annual limit $7,000, catch-up $0, Roth eligibility Full, allowed Roth contribution $7,000, Traditional tax savings $1,750, and a projected balance of about $661,226 at age 65.
Example 2 — The catch-up saver. Age 55, married filing jointly, MAGI $120,000, 24% bracket, 7% return, retiring at 67. Because he is 50 or older, the limit jumps to $8,000. His MAGI is well under the $230,000 MFJ floor, so the full $8,000 is Roth-eligible, and a Traditional contribution would save $8,000 × 24% = $1,920 this year. Over 12 years to age 67 at 7%, that projects to roughly $142,800.
Example 3 — Phased out. Age 42, single, MAGI $157,500 — right in the middle of the $150,000–$165,000 phase-out band. The allowed Roth contribution shrinks to 50% of the $7,000 limit, rounded down to the nearest $10: $3,500. Roth eligibility shows Partial. The remaining $3,500 of the limit can still go into a Traditional IRA (which has no income cap on contributions, only on the deduction), and a back-door Roth conversion can be layered on top.
Example 4 — High earner with no direct Roth space. Age 40, single, MAGI $1,500,000. He is above the $165,000 ceiling, so direct Roth contribution is $0 and eligibility shows None. The calculator still highlights the Traditional deduction path and the back-door Roth strategy as the practical workaround.
FAQ
How much can I contribute to an IRA in 2025?
For 2025 the base IRA contribution limit is $7,000. If you are age 50 or older by the end of the year, you can add a $1,000 catch-up, for a total cap of $8,000. This combined limit applies across all your Traditional and Roth IRAs — you cannot contribute $7,000 to each.
At what income does the Roth IRA phase out?
For 2025, single filers can contribute the full Roth amount at MAGI up to $150,000; the limit phases down to zero between $150,000 and $165,000. Married couples filing jointly have a much wider window: full contribution up to $230,000, phasing out to zero by $240,000. Above the ceiling you cannot make a direct Roth contribution, but a back-door Roth (non-deductible Traditional IRA plus immediate conversion) remains available.
Should I choose a Traditional or Roth IRA?
Choose Traditional if you expect a lower tax bracket in retirement than you have today — the upfront deduction is worth more than the future tax-free withdrawal. Choose Roth if you expect the same or higher bracket in retirement, or if you want tax diversification and tax-free RMD flexibility. The calculator shows your immediate Traditional tax savings side-by-side with the projected Roth balance so you can weigh the two.
What is the IRA catch-up contribution and when does it start?
The catch-up contribution is an extra $1,000 on top of the regular $7,000 limit, available to anyone age 50 or older at the end of the calendar year. It brings the total annual cap to $8,000. The calculator automatically adds the catch-up once your entered age is 50 or above.
Does my MAGI include my IRA deduction?
No. The Roth IRA income phase-out uses modified AGI calculated before any Traditional IRA deduction, but it does add back certain items like the student loan interest deduction, the tuition and fees deduction, and the foreign earned income exclusion. For most W-2 employees, MAGI is very close to the AGI on line 11 of Form 1040.
What if I earn too much to use a Roth IRA directly?
High earners above the Roth income ceiling can use a back-door Roth: make a non-deductible Traditional IRA contribution (there is no income limit on contributing to a Traditional IRA), then immediately convert it to a Roth IRA. Because you already paid tax on the dollars, the conversion itself is largely tax-free. This strategy is most valuable when you do not hold other pre-tax IRA balances that would trigger the pro-rata rule.
Can I contribute to both a 401(k) and an IRA?
Yes. The IRA limit is completely separate from the 401(k) elective-deferral limit (which is $23,500 in 2025, plus a $7,500 catch-up at 50). Even if you max out your workplace plan, you can still contribute the full $7,000 ($8,000 at 50) to an IRA, subject only to the MAGI phase-out above.
Related Calculators
- Roth IRA Calculator — project tax-free Roth growth through retirement.
- Traditional IRA Calculator — model the upfront deduction and taxable withdrawals.
- 401(k) Calculator — grow tax-deferred assets alongside your IRA.
- 401(k) Contribution Calculator — tune your deferral rate to capture the full employer match.
- Retirement Calculator — combine all accounts into one retirement-age projection.
Disclaimer
This IRA contribution calculator is provided for informational purposes only and does not constitute financial, tax, or investment advice. Contribution limits, income phase-out ranges, and brackets reflect the 2025 IRS announcement and may change in future years. Projected balances use a simple steady-return annuity model and ignore fees, taxes on withdrawals, inflation, and sequence-of-returns risk. Always confirm your exact eligibility, deduction status, and tax planning with a qualified tax professional or CPA before contributing.