Contribution Limits for 2025 for a Simple Roth IRA and a Traditional Roth Combination
I have a question regarding contribution limits for 2025. If I have a SIMPLE IRA with a Roth component, am I able to max out the contribution at $16,500 and still contribute the full $7,000 to a Traditional Roth IRA for the same year? This would give me a total contribution of $23,500.
Permalink Submitted by Alan - IRA critic on Tue, 2025-02-25 18:24
A regular Roth contribution is subject to income limits, so can only be done if your income is below the limit.
If your SIMPLE IRA supports Roth SIMPLE contributions, your income is going to be higher by the amount of those contributions compared to using pre tax contributions, and it’s possible that this would increase your income beyond the Roth IRA contribution income limit.
Therefore, you would need to project what your MAGI (modified AGI determines the income limit) will be before deciding to contribute to the Roth SIMPLE or traditional SIMPLE IRA. Your SIMPLE plan may or may not allow you to change the type of contribution during the year.
If it turns out that your Roth IRA contribution is excess, it can be removed before the due date and you would only owe tax on the gains, if any.
Permalink Submitted by Ronald Manso on Wed, 2025-02-26 10:08
If my income is below the limit (MAGI) that is allowed to put in a Roth. Can I contibute maximum to both and Roth IRA and a Simple Roth IRA, can I do both in the same year?
Permalink Submitted by Alan - IRA critic on Wed, 2025-02-26 10:13
Yes.