Maximizing Your Retirement: How Much Can a Married Couple Contribute to a Roth IRA in 2024-2025?

Are you and your spouse trying to figure out how to save more for retirement? Roth IRAs offer great tax benefits, but it can be hard to understand how much a married couple can put in. I spent hours looking into the newest contribution limits to make this complete guide for you.

The Short Answer

For 2024 and 2025, married couples filing jointly can each contribute up to $7,000 per person (under age 50) or $8,000 per person (age 50 or older) to their individual Roth IRAs. That means a married couple could potentially contribute a total of $14,000 to $16,000 annually across both of their Roth IRAs – as long as they meet the income requirements.

Understanding Roth IRA Contribution Limits for Married Couples

When my wife and I first started looking into Roth IRAs, we were confused about whether we could both have accounts and how much we could put in them. The good news is that each spouse can have their own Roth IRA, and each can contribute up to the individual limit.

Maximum Contribution Limits (Per Person)

Keep in mind that these limits cover all of your contributions to all of your IRAs, Roth and traditional, for the year. If you are under 50, you can only put $4,000 into a Roth IRA even if you put $3,000 into a traditional IRA.

Income Limits: The Big Catch for Married Couples

Here’s where things get tricky. Your ability to contribute to a Roth IRA is determined by your Modified Adjusted Gross Income (MAGI). Married couples filing jointly face specific income thresholds that determine how much they can contribute.

2024 Income Limits for Married Filing Jointly

• Full contribution allowed: MAGI under $230,000
• Partial contribution allowed: MAGI between $230,000 and $240,000
• No contribution allowed: MAGI of $240,000 or more

2025 Income Limits for Married Filing Jointly

• Full contribution allowed: MAGI under $236,000
• Partial contribution allowed: MAGI between $236,000 and $246,000
• No contribution allowed: MAGI of $246,000 or more

If your income is in the range for “partial contributions,” you’ll need to figure out how much you can put in. Don’t worry, I’ll show you how to figure this out even though it gets hard.

How to Calculate Your Reduced Contribution Amount

If your income falls in the phase-out range, you’ll need to calculate your reduced contribution limit. Here’s a simplified way to do it:

1. Start with your MAGI
2. Subtract the lower limit ($230,000 for 2024 or $236,000 for 2025 for married filing jointly)
3. Divide that result by $10,000 (the phase-out range)
4. Multiply that decimal by your maximum contribution limit
5. Subtract that amount from your maximum contribution limit

For example, let’s say you’re a married couple with MAGI of $233,000 in 2024, both under 50:

1. $233,000 – $230,000 = $3,000
2. $3,000 ÷ $10,000 = 0.3
3. 0.3 × $7,000 = $2,100
4. $7,000 – $2,100 = $4,900 (your reduced contribution limit per person)

So in this scenario, each spouse could contribute up to $4,900 to their Roth IRA for a total of $9,800 as a couple.

What About Spousal IRA Contributions?

One awesome feature of IRAs is the spousal contribution. If one spouse doesn’t work or has very little income, the working spouse can still contribute to an IRA for the non-working spouse.

Schwab says that if you file jointly with an unemployed non-working spouse, you can contribute to their IRA as well. However, your total combined contribution cannot be more than your joint taxable income or twice the annual IRA limit, whichever is less. “.

This is great news for families where one person stays home with kids or is between jobs. Even with only one income, both spouses can still save for retirement!

Contribution Deadlines

Don’t forget – you have until the tax filing deadline (typically April 15) of the following year to make your Roth IRA contributions. For example, you have until April 15, 2025, to make your 2024 Roth IRA contributions.

But as Fidelity points out, “it is better to contribute earlier rather than later, so you can take advantage of tax-free growth potential for a longer period of time.”

What If You Contribute Too Much?

Oops! Mistakes happen. If you accidentally contribute more than allowed to your Roth IRA, you have options:

1. Withdraw the excess contributions (and any earnings on them) before your tax filing deadline (including extensions)
2. Recharacterize your Roth IRA contributions to a traditional IRA
3. Apply the excess to next year’s contribution (though this doesn’t avoid the 6% penalty for the current year)

If you don’t fix the overcontribution, you’ll face a 6% penalty tax on the excess amount every year until it’s corrected. Yikes!

Married Filing Separately? Different Rules Apply

If you’re married but file taxes separately, the rules are much stricter. If you lived with your spouse at any time during the year and your MAGI is less than $10,000, you can only make a reduced contribution. If your MAGI is $10,000 or more, you cannot contribute to a Roth IRA at all.

However, if you’re married filing separately and did NOT live with your spouse during the tax year, you can use the limits for single filers.

Alternative Options If You Exceed Income Limits

If your income is too high to contribute directly to a Roth IRA, you still have options:

Backdoor Roth IRA

You can make a non-deductible contribution to a traditional IRA and then convert it to a Roth IRA. This strategy, known as a “backdoor Roth,” has no income limits.

Roth 401(k)

If your employer offers a Roth 401(k), consider that option. Unlike Roth IRAs, Roth 401(k)s have no income limits, and the contribution limits are much higher ($23,500 for 2025, or up to $31,000 for those 50 or older).

Why Contribute to a Roth IRA?

You might be wondering if all this hassle is worth it. In my experience, Roth IRAs offer some incredible benefits:

• Tax-free growth: Your investments grow tax-free
• Tax-free withdrawals in retirement: Once you’re 59½ and your account is at least 5 years old, withdrawals are completely tax-free
• No required minimum distributions: Unlike traditional IRAs, you’re never forced to take money out
• Flexible access to contributions: You can withdraw your contributions (but not earnings) at any time without penalties

For many married couples, especially those expecting to be in a higher tax bracket in retirement, Roth IRAs can be an incredible tool for building wealth.

Tips for Maximizing Your Roth IRA Contributions as a Couple

Here are some strategies we’ve used to maximize our Roth IRA benefits:

• Contribute early in the year if possible, to maximize tax-free growth
• Set up automatic monthly contributions to make saving easier
• Consider timing your income if you’re near the threshold (like deferring bonuses to the next tax year)
• Look for tax deductions that might lower your MAGI to qualify for Roth contributions
• Coordinate with your spouse to ensure you’re maximizing retirement savings across all available accounts

Final Thoughts

Navigating Roth IRA contribution limits for married couples can be complex, but the potential benefits make it worthwhile. Remember that contribution limits and income thresholds typically adjust yearly for inflation, so it’s important to stay updated.

My wife and I review our retirement savings strategy annually to ensure we’re making the most of all available options. With proper planning, you and your spouse can build significant tax-free retirement savings through Roth IRAs.

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Disclaimer: This article is for informational purposes only and is not intended as tax or financial advice. Everyone’s situation is different, so please consult with a qualified tax professional or financial advisor before making investment decisions.