If You're 60 to 63, Here's Why the April 15 IRA Deadline Is Especially Important This Year
Key Points
An IRA can be a great resource as you plan for retirement.
Contributions let you score lower taxes over your lifetime, and you can still open an account before the April 15 deadline.
IRA contributions combined with super catch-up contributions can accelerate your path toward long-term financial goals.
- The $23,760 Social Security bonus most retirees completely overlook ›
You still have time to contribute to an IRA for the 2025 tax year, and it's more important than ever if you are between 60 and 63 years old. That's because the IRS introduced super catch-up contributions for employer-sponsored plans like 401(k) and 403(b) plans.
While super catch-up contributions do not apply to IRAs right now, the chance to contribute more money into employer-sponsored plans offers an enticing window of opportunity for people who are behind on their savings.
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Why you should use the super catch-up contribution
Under the regular catch-up contribution, you can put an additional $7,500 into your employer-sponsored plan for tax year 2025. This figure goes up to $11,250 if you are 60 to 63, allowing you to invest an extra $3,750 into your employer-sponsored retirement plan. The 2025 catch-up contribution is $1,000 for IRAs and remains at that level even if you are 60 to 63 years old.
The super catch-up contribution lets you save on taxes while enjoying compound growth from your portfolio. You will earn less income when you retire, and that will put you in a lower tax bracket. Putting more money into your retirement accounts is especially beneficial if you are a high earner.
Roth contributions will be the new standard next year for high earners
Another reason to capitalize on your super catch-up contribution now is a new rule that takes effect in 2026. That's the year anyone who earns $150,000 or higher in prior-year FICA wages must make all catch-up contributions on a post-tax Roth basis. This rule does not apply to IRAs and is specifically for employer-sponsored plans.
High earners have one last year to take advantage of traditional retirement plan catch-up contributions. FICA wages reflect your gross earnings before voluntary deductions like 401(k) contributions. This rule only applies to catch-up contributions, so if you want your regular 401(k) contribution to be pre-tax income, that option will still be available to you.
It's never too late to open an IRA
You can still open an IRA and contribute to the plan before the April 15 IRA deadline. While starting an IRA at the last minute can be stressful, you will have this retirement account all ready to go for future years. Then, you will reduce your taxes each year while moving closer to your long-term financial goals.
Luckily, opening an IRA is fast, easy, and free. Check out our list of the best IRA brokers to get started before Tax Day.
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