A man in his 40s with no retirement savings questions if it's too late to start. Financial experts weigh in on the viability of beginning with a Roth IRA, even with small monthly contributions, highlighting the 2025 limits and income rules.
October 8, 2025
Source:
MSN
Starting Fresh: Retirement Savings in Your 40s
The question of whether it's "too late" to start saving for retirement is a common anxiety, particularly for those entering their 40s with little to no savings. A recent query from a man in this exact situation—‘I have no retirement savings’—highlights a pressing concern for many Americans.
While his wife holds an $85,000 Roth IRA, he is starting from scratch. However, financial experts affirm that beginning now is far better than not starting at all. Even small, consistent contributions can become a significant nest egg over time.
Understanding 2025 Contribution Limits
For those looking to start, a Roth IRA offers a powerful tool. According to the Internal Revenue Service (IRS), the 2025 contribution limits are:
$7,000 for individuals under age 50.
$8,000 for those age 50 and over, which includes a $1,000 catch-up contribution.
A starting strategy of contributing $50 to $200 per month, totaling $600 to $2,400 annually, falls comfortably within these federal limits. This makes it an accessible entry point for building retirement wealth.
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Source:
MarketWatch
Income Rules for Roth IRA Contributions
Eligibility to contribute to a Roth IRA is not just about age; it is also determined by your Modified Adjusted Gross Income (MAGI). The IRS sets specific thresholds each year that dictate who can make full, partial, or no contributions.
2025 MAGI Thresholds for Full Contributions
To make the maximum contribution in 2025, your MAGI must be below certain levels based on your tax filing status.
Single, Head of Household, or Married Filing Separately (and didn't live with spouse): MAGI must be under $150,000.
Married Filing Jointly or Qualifying Widow(er): MAGI must be under $236,000.
Contribution Phase-Outs
If your income exceeds these initial thresholds, your maximum contribution amount is reduced. The ability to contribute is completely phased out for those with a MAGI above:
$165,000 for single filers.
$246,000 for those married filing jointly.
These income limits are critical for determining if a Roth IRA is the right vehicle for your savings. Individuals with incomes above these levels may need to explore other options, such as a backdoor Roth IRA conversion. For more details on the phase-out calculations, financial resources from institutions like Fidelity provide in-depth guides.
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Source:
Chegg
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