Funding a Roth

TO CLAIM A TAX deduction for your traditional IRA contribution, much hinges on whether you’re covered by a retirement plan at work. That doesn’t come into play with a Roth IRA. Instead, all that matters is your income.

If you are single or head of household and you have enough earned income, you can fully fund a Roth IRA in 2024 if your modified adjusted gross income is less than $146,000. The amount you can contribute is phased out if your income is between $146,000 and $161,000. Above $161,000, no contribution is allowed. For 2025, the phaseout range is $150,000 to $165,000.

If you are married filing jointly, your ability to fund a Roth phases out if your combined income is between $230,000 and $240,000 in 2024 and between $236,000 and $246,000 in 2025.

What if you’re eligible to make only a partial Roth contribution of, say, $4,000 out of 2025’s possible $7,000? You can put the remaining $3,000 in a traditional IRA, though your contribution won’t necessarily be tax-deductible.

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