Traditional and Roth IRAs, explained from Chapter 9
How much you can put in, when a traditional IRA is deductible, and what happens when you take money out, with limits for 2023, 2024, 2025 and 2026 planning.
Prepared by Prem Tax and Accounting Corp. Last checked against official sources on October 26, 2026.
Chapter 9 covers IRAs, the retirement accounts you open yourself. It matters if you save, roll over a 401(k) or withdraw early. It sits on printed pages 77 to 91 of the 2025 edition (78 to 92 in 2023 and 2024). Think of this page as a friendly summary; the IRS publication has the last word.
- You need pay from working, yours or your spouse's.
- Traditional and Roth contributions share one limit (all years).
- A traditional deduction fades at higher income if you have a work plan.
- Early withdrawals usually add 10 percent tax, and required withdrawals start at 73 if you turned 72 after 2022.
Putting money in
Wages, tips, bonuses and self-employment earnings count as pay; investment and pension income do not. Contributions are cash only, with no age cap (all years), and are due by the return's due date, not counting extensions. A spouse with little pay can still have an IRA on a joint return. With no work plan for you or your spouse, a traditional contribution is deductible up to the limit. If either of you has one, the deduction fades across the modified adjusted gross income (MAGI) ranges below.
Numbers by year
| Year | Limit (+ at 50) | Deduction, single | Deduction, joint | Roth, single |
|---|---|---|---|---|
| 2023 | $6,500 (+$1,000) | $73,000 to $83,000 | $116,000 to $136,000 | $138,000 to $153,000 |
| 2024 | $7,000 (+$1,000) | $77,000 to $87,000 | $123,000 to $143,000 | $146,000 to $161,000 |
| 2025 | $7,000 (+$1,000) | $79,000 to $89,000 | $126,000 to $146,000 | $150,000 to $165,000 |
| 2026 planning | $7,500 (+$1,100) | $81,000 to $91,000 | $129,000 to $149,000 | $153,000 to $168,000 |
Deduction columns assume a work plan covers you; single includes head of household. If only your spouse is covered, and for Roth on a joint return, one range applies: $218,000 to $228,000 (2023), $230,000 to $240,000 (2024), $236,000 to $246,000 (2025), $242,000 to $252,000 (2026 planning). For 2026, treat the numbers as planning figures (source: IRS Notice 2025-67), since the IRS has not issued Pub 17 (2026).
Taking money out
- Tax. Withdrawals are ordinary income, except returned nondeductible contributions tracked on Form 8606.
- Early withdrawals. Before age 59 and a half, the taxable part usually adds 10 percent tax (all years). Exceptions include disability, terminal illness, a first home, higher education and medical bills above 7.5 percent of AGI. Abuse-victim and emergency-expense exceptions start after December 31, 2023, so the 2023 edition omits them.
- Required withdrawals. If you turned 72 after 2022, the first is due by April 1 of the year after you turn 73; earlier birth years use a lower age. The 2023 edition still prints 72 in places, but its own note says 73. A missed amount costs 25 percent, or 10 percent with extra conditions (all years).
- Rollovers. Moving money to another IRA within 60 days is untaxed, once per 12 months across all your IRAs. Direct transfers and Roth conversions (taxable) do not count toward that limit.
- Roth. Qualified withdrawals are tax free after five years if you are 59 and a half, disabled, a beneficiary, or buying a first home (up to $10,000). No required withdrawals while you live.
An invented example
Priya, 52, earned $5,600 part time in 2025 (invented). Her limit is the smaller of $8,000 ($7,000 plus $1,000 at age 50) or $5,600, so $5,600. After $2,000 into a Roth IRA, a traditional IRA has room for $5,600 minus $2,000 = $3,600.
Mistakes people make
- Counting traditional and Roth limits separately; the excess costs 6 percent a year (all years).
- Assuming MAGI equals pay; interest and dividends count.
- Skipping Form 8606, or breaking the one-rollover or 60-day rules.
Quick check
Single, 401(k) at work, MAGI $82,000: deduction (2025)?
Answer: Partial, because $82,000 is above $79,000 and below $89,000.
Age 55, pay $6,200, $2,500 in a Roth: traditional room (2025)?
Answer: $3,700, which is $6,200 (the smaller of $8,000 or $6,200) minus $2,500.
Turned 73 in 2024: first required withdrawal due?
Answer: By April 1, 2025, the April after the year you turned 73 (you turned 72 in 2023, after 2022).
Common questions
How late can I fund an IRA for a year?
Until that year's return due date, ignoring extensions: April 15, 2026 for 2025.
Is rolling a 401(k) into an IRA taxable?
Not if it moves directly or within 60 days. Report it on Form 1040 lines 5a and 5b; IRA-to-IRA rollovers use lines 4a and 4b. Pub 17 prints 4a for employer plans, but the Form 1040 instructions say 5a.
Must I withdraw from a Roth IRA at 73?
No, not while you live. Business owners can see [retirement tax savings](/retirement-tax-savings/).
Official sources
- IRS Publication 17 (2025), chapter 9
- IRS Publication 17 (2024), chapter 9
- IRS Publication 17 (2023), chapter 9
- IRS Notice 2025-67, 2026 retirement plan and IRA limits
- IRS Instructions for Form 1040 (2025), lines 4a to 5c
- IRS, Retirement topics: required minimum distributions
Keep reading
- Wages and Job Benefits: Pub 17 Chapter 5
- Taxable Social Security: Pub 17 Chapter 7
- Key Tax Numbers by Year, 2023 to 2026
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