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January 21, 2025
How can a married couple make a $32,000 IRA contribution?
Welcome to the Retirement Learning Center’s (RLC’s) Case of the Week. Our ERISA consultants regularly receive calls from financial advisors on a broad array of technical topics related to IRAs, qualified retirement plans and other types of retirement savings and income plans, including nonqualified plans, stock options, Social Security and Medicare. This is where we highlight the most relevant topics affecting your business. A recent call with a financial advisor in Virginia is representative of a common question on IRA contributions.
"How can a married couple make a $32,000 IRA contribution?"
Highlights of the discussion
Married couples can take advantage of a combination of special IRA contribution rules to make up to a $32,000 IRA contribution by April 15, 2025. This sizeable contribution is possible courtesy of a combination of several IRS rules covering
Carry-back and current-year contributions,
Spousal contributions, and
Catch-up contributions.
From January 1, 2025, to April 15, 2025, it is possible for a traditional or Roth IRA owner aged 50 and over to make a $16,000 contribution: $8,000 ($7,000 regular + $1,000 catch-up contribution) as a 2024 carry-back contribution and another $8,000 ($7,000 regular + $1,000 catch-up contribution) as a 2025 current-year contribution. That means a married couple filing a joint tax return could potentially make a $32,000 IRA contribution, with a maximum of $16,000 going to each spouse’s respective IRA. For couples under age 50, the maximum contribution would be $28,000, with a maximum of $14,000 going to each spouse’s respective IRA.
When making these contributions it is important to clearly designate to the IRA administrator that a portion is a carry-back contribution for 2024 and a portion is a 2025 current-year contribution to avoid having the full amount treated as a current-year contribution and, subsequently, an excess contribution for 2025.
Whether the traditional IRA contributions would be tax deductible depends upon “active participation” of either spouse in a workplace retirement plan(1) and the couple’s MAGI. Please see the applicable MAGI ranges in the following chart.
| Traditional IRA Eligibility for Deductible Contributions | ||
| Taxpayer Category | 2025 MAGI Phase-Out Ranges | 2024 MAGI Phase-Out Ranges |
| Married active participant filing a joint income tax return | $126,000-$146,000 | $123,000-$143,000 |
| Single or head of household active participant | $79,000-$89,000 | $77,000-$87,000 |
| Spouse of an active participant | $236,000-$246,000 | $230,000-$240,000 |
| Married active participant filing separate income tax return | $0-$10,000 | $0-$10,000 |
| Roth IRA Contribution Eligibility | ||
| Taxpayer Category | 2025 MAGI Phase-Out Ranges | 2024 MAGI Phase-Out Ranges |
| Married filing a joint income tax return | $236,000-$246,000 | $230,000-$240,000 |
| Single or head of household individuals | $150,000-$165,000 | $146,000-$161,000 |
| Married filing separate income tax return | $0-$10,000 | $0-$10,000 |
Conclusion
The deadline for making 2024 traditional or Roth IRA contributions is April 15, 2025. That means there is a window of opportunity that allows eligible couples age > age 50 to double their IRA contributions (one for 2024 and one for 2025) for a total of $32,000. For couples under age 50, the maximum combined contribution would be $28,000.
(1) See IRA Deduction Limits