Finance Maxxing
Retirement Accounts
Traditional IRA
Tax-deductible contributions with tax-deferred growth.
A Traditional IRA provides an upfront tax deduction (if eligible) with tax-deferred growth. Withdrawals are taxed as ordinary income.
2025 Limits
| Under 50 | Age 50+ | |
|---|---|---|
| Contribution limit | $7,000 | $8,000 |
Combined with Roth IRA — you can split between them but cannot exceed the total.
Deductibility Phase-Outs (2025)
If you (or your spouse) are covered by an employer retirement plan:
| Filing Status | Full Deduction | Phase-Out | No Deduction |
|---|---|---|---|
| Single / HOH | MAGI < $79,000 | $79,000–$89,000 | > $89,000 |
| MFJ (you have plan) | MAGI < $126,000 | $126,000–$146,000 | > $146,000 |
| MFJ (spouse has plan) | MAGI < $236,000 | $236,000–$246,000 | > $246,000 |
If neither spouse has an employer plan, the deduction is available at any income level.
Non-deductible IRA contributions are still allowed above the phase-out — this is the basis for the "backdoor Roth" strategy.
Sources
More in Retirement Accounts
401(k) / 403(b) / 457(b)
Employer-sponsored retirement plans with tax-deferred growth.
Roth IRA
After-tax contributions with tax-free growth and withdrawals.
Health Savings Account (HSA)
Triple tax-advantaged: deductible, tax-free growth, tax-free withdrawals.
Traditional vs. Roth
Pre-tax now vs. tax-free later — depends on future tax rate.
Roth Conversion
Moving pre-tax retirement assets into a Roth account.
Required Minimum Distributions (RMDs)
Mandatory annual withdrawals from pre-tax retirement accounts.
529 College Savings Plan
Tax-free growth for education expenses; state deductions may apply.