How much can I contribute to both a 401(k) and an IRA in 2025?

You can contribute to BOTH a 401(k) and an IRA in the same year — the contribution limits are separate. Here are the 2024 limits:

401(k) contribution limits for 2024:

• Employee contributions: $23,000 (up from $22,500 in 2023)
• Catch-up contributions (age 50+): Additional $7,500, for a total of $30,500
• Total limit including employer match: $69,000 ($76,500 with catch-up)

IRA contribution limits for 2024:

• Traditional and/or Roth IRA: $7,000 total across all IRAs (up from $6,500 in 2023)
• Catch-up contributions (age 50+): Additional $1,000, for a total of $8,000

Can you deduct Traditional IRA contributions if you have a 401(k)?

This is where it gets nuanced. If you (or your spouse) are covered by a workplace retirement plan:

• Single filers: Traditional IRA deduction phases out at MAGI $77,000–$87,000
• Married filing jointly (contributor has workplace plan): Phases out at $123,000–$143,000
• Married filing jointly (contributor does NOT have workplace plan, but spouse does): Phases out at $230,000–$240,000

Even if you can't deduct a Traditional IRA contribution, you can still make a non-deductible Traditional IRA contribution and potentially do a backdoor Roth IRA conversion — a common strategy for high earners.

Roth IRA income limits for 2024:

• Single: Phases out at $146,000–$161,000 MAGI
• Married filing jointly: Phases out at $230,000–$240,000 MAGI

Maximum combined retirement savings (2024):

An employee under 50 could contribute $23,000 (401k) + $7,000 (IRA) = $30,000 in personal contributions, plus any employer match.