Yes. Anyone with earned income can open and contribute to a traditional IRA. The contribution limit is $7,000 for 2025 (unchanged from 2024), plus an additional “catch-up” contribution of $1,000 if you’re 50 or older in 2025 (unchanged from 2024). However, you may not be able to deduct your IRA contributions if you’re covered by a 401(k) plan at work. Whether or not you can deduct your IRA contributions depends on your filing status and annual income (adjusted gross income, or AGI). Specifically, for tax year 2025:
| If your filing status is: | Your IRA deduction is reduced if your AGI is between: | Your deduction is eliminated if your AGI is: |
| Single or head of household | $79,000 and $89,000 | $89,000 or more |
| Married filing jointly or qualifying widow(er) | $126,000 and $146,000 | $146,000 or more |
| Married filing separately | $0-$10,000 | $10,000 or more |
Special rules apply if your spouse is covered by a plan at work, but you are not. You may also qualify for a partial tax credit for amounts contributed to your traditional IRA or your 401(k) plan.
This content has been reviewed by FINRA.
Prepared by Broadridge Advisor Solutions. © 2025 Broadridge Financial Services, Inc.
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