IRA Deduction Limits For Newly Married Couples (2025)
In this post, I am going to focus on the IRA deductibility limits and the different situations in which your IRA contribution may or may not be deductible. I will also cover spousal IRAs.
First thing is first, it important to understand how IRA deductions change depending on a few different factors.
You can deduct your full contribution to a Traditional IRA if:
You and your spouse are both not covered by a retirement plan at work (think a 401k or 403b), regardless of income.
You are covered by a retirement plan at work, but your Modified Adjusted Gross Income (MAGI) is below certain thresholds
IRA Deductibility Thresholds (Married Filing Jointly)
If you are covered by a retirement plan at work, these are the income limits of deductibility of IRA contributions:
≤ $126,000 = Full Deduction
> $126,000 but < $146,000 = Partial Deduction
≥ $146,000 = No Deduction
If you are not covered by a retirement plan at work (but your spouse is), these are the income limits of deductibility of IRA contributions:
≤ $236,000 = Full Deduction
> $236,000 but < $246,000 = Partial Deduction
≥ $246,000 = No Deduction
If you and your spouse are both not covered by a retirement plan at work:
There is no limit on MAGI. All contributions are deductible.
What if you make over the income limit?
If you earn too much to deduct you and/or your spouse’s Traditional IRA contribution:
You can still contribute, but it will be a non-deductible contribution.
You must file IRS Form 8606 each year to track the basis (the non-deductible portion) in the IRA.
Growth is tax-deferred, but withdrawals in retirement are partially taxable (only the growth is taxed; the non-deductible contributions are not).
You may consider doing a backdoor Roth IRA, however if you do, be cautious of the pro-rata rule.
Contribution Limits for IRA - 2025
The maximum contribution limit for 2025 is $7,000 (or $8,000 if age 50 or older).
Are Roth IRA Contributions Deductible?
Contributions to a Roth IRA are never tax-deductible, but they grow tax-free and qualified withdrawals are tax-free.
Deciding between the traditional vs Roth IRA is not a one-size-fits-all choice. Read this blog if you are wanting to learn more about deciding which may be best for you: https://www.moneymattersfortwo.com/p/traditional-vs-roth-which-one-do-you-pick
Thanks for reading & I hope you found value in this post.
-Kolin
If you are looking to get organized on your finances, read this post: Getting Your Finances Organized As A Newly Married Couple
Disclaimer: The content provided in this blog post is for educational purposes only and should not be considered as financial advice or tax advice. While every effort has been made to provide accurate and up-to-date information, the content on Money Matters For Two is based on personal research, opinions, and experiences. The financial landscape can change rapidly, and what may be applicable at the time of writing may not necessarily be applicable in the future.
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