Can I contribute $7K to a personal Roth IRA, and also contribute to my SIMPLE Roth IRA at work?

Question

Can I contribute the $7000 IRA Max to my personal Roth IRA, and still make payroll deduction contributions to my employer's SIMPLE (Roth) IRA in the same year?  Do I have to stop contributing to my personal Roth IRA totally, if I want to exceed $7000 to my employer's SIMPLE Roth plan (or even max-out to $16,500)?  I'm a single filer with income below $65K, and I realize that neither Roth contribution is tax-deductible.  Thx.

Taylor · Accepted Answer

Hello BillD,

The SIMPLE IRA and personal Roth IRA contributions have separate contribution limits, so you can contribute to both in the same year without one affecting the other.

For 2025, you can contribute:

- Up to $7,000 to your personal Roth IRA (or $8,000 if you're age 50 or older)

- Up to $16,500 to your employer's SIMPLE IRA through payroll deductions (or $20,000 if you're age 50 or older)

These limits are independent of each other. Contributing the maximum to your SIMPLE IRA doesn't reduce how much you can put into your personal Roth IRA, and vice versa. You don't need to stop contributing to your personal Roth IRA to maximize your SIMPLE IRA contributions.

Since your income is below $65K as a single filer, you're within the income limits for Roth IRA contributions, so you're all set on that front as well.

If you would like additional information, the IRS contribution limits are posted here:

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

The details on how the contributions are independent of each other can be found on IRS Pub 590-A, page 40, left column.

BillD · Accepted Answer

Great advice and I really appreciate the IRS reference links.   Thank You, Taylor!