Gemini on Question 49, Sep 20

For 2025, since you are 50 years old, your maximum Roth IRA contribution limit is $8,000.

Here is the breakdown of how that works, along with the income limits for a single filer:

1. The Contribution Limit

• •Base Limit: $7,000
• •Catch-up Contribution (Age 50+): $1,000
• •Total Maximum: $8,000

(Note: You must have at least $8,000 in earned income for the year to contribute the maximum).

2. The Income Phase-Out Range (Single Filer)

Your ability to contribute directly to a Roth IRA depends on your Modified Adjusted Gross Income (MAGI). For a single filer in 2025, the phase-out range is $150,000 to $165,000.

Here is how your MAGI affects your contribution:

• •Under $150,000: You can contribute the full $8,000.
• •Between $150,000 and $165,000: You can make a partial contribution. The exact amount you can contribute is reduced proportionately as your income moves up through this $15,000 range.
• •$165,000 or higher: You cannot contribute directly to a Roth IRA.

What if your income is too high?

If your MAGI is $165,000 or above, you can still get money into a Roth IRA using a legal strategy called the Backdoor Roth IRA. This involves making a non-deductible contribution of $8,000 to a Traditional IRA and immediately converting it to a Roth IRA. (Note: If you have existing pre-tax money in any Traditional IRAs, look into the "pro-rata rule" first, as it could trigger a tax bill during the conversion).