IRA contributions can be tax deductible in 2025, but the deduction mainly depends on three items: the IRA type, your filing status, and whether you or your spouse is covered by a retirement plan at work. Roth IRA contributions are not deductible, while traditional IRA contributions may be fully deductible, partially deductible, or not deductible at all based on IRS income phase-outs tied to workplace coverage.

Quick Rule: Which IRA Is Tax Deductible?

A traditional IRA is the account type where contributions may be deductible on your federal return. A Roth IRA does not allow a deduction for contributions, even though it can offer tax-free qualified withdrawals later when rules are met.

Traditional IRA deductibility is not a yes-or-no rule for everyone because IRS phase-outs apply when workplace plan coverage exists.

2024 and 2025 Contribution Limits

Before deductions come into play, it helps to know the contribution ceilings. The IRS states that for 2024 and 2025, total contributions across all your traditional and Roth IRAs combined cannot exceed $7,000, or $8,000 if you are age 50 or older, subject to taxable compensation limits.

These limits apply to the contribution piece, not rollovers. The IRS also notes that for 2020 and later there is no age limit on making regular contributions to traditional or Roth IRAs.

The IRS Phase-out Idea Explained

A traditional IRA deduction can shrink as income rises when you or your spouse participates in a workplace retirement plan. The IRS describes this as a reduced deduction or no deduction once modified AGI falls inside, then above, the phase-out ranges.

No workplace plan often produces the cleanest outcome, because the IRS states that if neither spouse participated in a retirement plan at work, all contributions are deductible. Workplace coverage does not block the contribution itself, but it can limit the deduction.

2024/2025 Income Phase-out Charts

The numbers below come from IRS Publication 590-A (for 2024 returns) and its 2025 updates.

Traditional IRA deduction phase-out (covered by a plan at work)

2024 phase-out ranges (covered by retirement plan at work):

Married filing jointly or qualifying surviving spouse: more than $123,000 but less than $143,000.
Single or head of household: more than $77,000 but less than $87,000.
Married filing separately: less than $10,000.

2025 phase-out ranges (covered by retirement plan at work):

Married filing jointly or qualifying surviving spouse: more than $126,000 but less than $146,000.
Single or head of household: more than $79,000 but less than $89,000.
Married filing separately: less than $10,000.

Traditional IRA deduction phase-out (not covered, spouse is covered)

The IRS also gives a separate range for a spouse who is not covered at work but is married to someone who is covered.

2024: phased out if modified AGI is more than $230,000 but less than $240,000, with no deduction at $240,000 or more.
2025: phased out if modified AGI is more than $236,000 but less than $246,000, with no deduction at $246,000 or more.

Roth IRA income phase-outs (for direct contributions)

Roth IRA income limits matter because they influence planning paths. For 2025, the IRS states Roth IRA contributions phase out for married filing jointly starting at $236,000 and end at $246,000, and for single or head of household starting at $150,000 and ending at $165,000, with special rules for married filing separately.

Income Limits Vs. Contribution Limits

People searching “IRA tax deduction income limits” often mix up two different ideas: income-based phase-outs for deductions or Roth eligibility, and the contribution cap for how much can go in.

Topic	What it controls	Who it hits most	2024	2025
IRA contribution limit	Max you can contribute across traditional + Roth IRAs	Everyone contributing	$7,000 ($8,000 age 50+)	$7,000 ($8,000 age 50+)
Traditional IRA deduction phase-out	How much of a traditional IRA contribution is deductible	People covered by workplace plans	Ranges vary by filing status	Ranges vary by filing status
Roth IRA income phase-out	Ability to contribute directly to Roth IRA	Higher-income savers	Ranges vary by filing status	Ranges vary by filing status

Deduction Scenarios by Filing Status

Is IRA contribution tax deductible? The fastest way to answer it is to identify your filing status and workplace plan coverage, then match your modified AGI to the IRS range. These scenario sketches show the typical outcomes described by the IRS.

Single, not covered at work: Traditional IRA contributions are generally deductible because the workplace-plan phase-out does not apply in the same way when you are not covered.
Single, covered at work: Full, partial, or no deduction depends on modified AGI relative to the IRS phase-out range for that year.
Married filing jointly, both covered at work: Deduction follows the joint-filer phase-out range for that year.
Married filing jointly, contributor not covered but spouse covered: Deduction follows the special higher-income phase-out range for that year.
Married filing separately: The IRS provides a very narrow range tied to workplace coverage, which can reduce or remove the deduction at low modified AGI levels.

Traditional IRA Deduction Calculator

Step 1: Confirm your IRA contribution

The IRS caps total IRA contributions across all your traditional and Roth IRAs for 2025 at $7,000, or $8,000 if age 50 or older, subject to compensation rules. Write down how much you contributed or plan to contribute.

Step 2: Identify workplace coverage

Determine if you were covered by a retirement plan at work during the year, or if your spouse was covered. IRS Publication 590-A discusses coverage and connects it to deduction limits.

Step 3: Find your modified AGI and filing status

Use your tax return inputs to estimate modified AGI, then select your filing status. Modified AGI is the measure used for the traditional IRA deduction phase-out and for Roth IRA contribution phase-outs.

Step 4: Apply the IRS phase-out range

Match your modified AGI to the 2025 range that applies to your filing status and coverage.

Below the range often means a full deduction is available.
Inside the range often means a reduced deduction.
Above the range can mean no deduction.

For the exact reduced-deduction math, IRS Publication 590-A contains worksheets for figuring a reduced IRA deduction.

Non-deductible Traditional IRAs and Planning Value

A non-deductible traditional IRA contribution can still have value because investment growth inside an IRA is generally not taxed until distributed. IRS Publication 590-A explains that contributions may be deductible depending on circumstances, and it also details nondeductible contributions and related reporting.

Non-deductible contributions create “basis,” which should be tracked to avoid paying tax twice on the same dollars. This topic becomes even more important if Roth conversions are part of your long-range plan.

Backdoor Roth IRA Tie-in for High Earners

When income is high enough that a deduction is reduced or eliminated, and when direct Roth IRA contributions phase out, some savers look at non-deductible traditional IRA contributions paired with Roth conversion strategies. IRS Publication 590-A includes a section on converting from a traditional IRA into a Roth IRA, which provides the rule framework that conversion-based strategies rely on.

Conversion tax outcomes can be affected by other pre-tax IRA balances, so tax planning is often fact-specific.

Year-by-year IRA Contribution Limit Table

Tax year	IRA contribution limit	Catch-up (age 50+)
2022	$6,000	$7,000
2023	$6,500	$7,500
2024	$7,000	$8,000
2025	$7,000	$8,000

Tax Timing, Deadlines, and Avoiding Excess Contributions

An excess IRA contribution can occur if you contribute more than the limit, and the excess is generally taxed at 6% per year for each year it remains in the IRA. The IRS also explains that to avoid the 6% tax, the excess contribution and related earnings generally must be withdrawn by the due date of your return, including extensions.

Planning is often easier when contributions are tracked against the annual cap across all IRAs, especially for households using both a Roth IRA and a traditional IRA in the same year. If spousal IRA rules apply, each spouse can contribute up to the limit, subject to the couple’s combined taxable compensation.

How Nevada Trust Company® Can Help

Retirement tax planning often intersects with custody, administration, and longer-term wealth planning decisions, especially for families balancing multiple account types and broader asset protection goals.

At Nevada Trust Company®, we offer trust, custody, escrow, retirement, and investment management services with a client-first approach and coordination with tax and estate planning professionals. Contact us to speak with a trust officer.