You Don't Have to Max Out Your IRA by the End of 2025. Here's the Real Deadline.

Maxing out contributions to your IRA account can be a great way to save and invest for your future. In 2025, you can put in up to $7,000 in your traditional or Roth IRA, provided you aren't above the income limits. If you're 50 or older, you're allowed to contribute as much as $8,000 thanks to catch-up contributions.

With a traditional IRA, you get a tax deduction for these contributions, so each one won't cost you as much. With a Roth IRA, you don't claim your tax savings this year when you contribute. However, you'll make a major investment in your future, as you can withdraw this money tax-free during your retirement.

Of course, 2025 is almost over, so if you haven't yet maxed out these accounts, you may feel like it's hopeless to try to do so now. In fact, that's not actually the case. You still have time to put money away in your retirement plans because the actual deadline for your 2025 contributions is not Dec. 31, 2025.

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Your actual IRA contribution deadline

If you're behind on retirement investing, the good news is that the deadline for making 2025's IRA contributions isn't the end of the calendar year. You have until the tax filing deadline for the year. You can contribute to your IRA until your 2025 taxes are due on April 15, 2026.

The fact that the deadline is not until April gives you more time to make a commitment to max out your IRA, or to get as close to doing so as possible. If you have contributed nothing so far this year, you could make a contribution of $1,750 per month in January, February, March, and April, and you would be able to hit the contribution limit for the year and avoid missing out on this year's tax breaks.

Remember, if you're using a traditional IRA and contributing with pre-tax funds, this would not even cost you that full amount. If you're in the 22% tax bracket, a $7,000 contribution could save you up to $1,540 in federal income tax, so that contribution would only reduce your take-home income by $5,460.

Once you've made your contribution, you'll also start benefiting from compound growth. A $7,000 contribution made in 2025 could turn into $18,156.20 over a decade, assuming a 10% average annual return. Over 30 years, that single contribution you made for 2025 could turn into $122,145.82. That's a big boost to your retirement plans.

Finding spare funds to contribute to your 2025 IRA

Not everyone has an extra $1,750 per month to spare, but you don't have to max out your account to make a positive impact. If you can contribute even a small amount for the 2025 year between now and the April deadline, you'll benefit from the tax break that this account provides. You can also start making your money work for you and earn returns that can be reinvested.

There are several ways you could try to find more money to put into your account by the end of the year if you're ready to get serious about retirement planning. If you get a holiday bonus or a year-end bonus from your company, you could invest that money in your IRA. You could also consider a temporary side hustle doing seasonal work, or you could make budget cuts for the first few months of the year to put as much money into your account as you can before the deadline.

Of course, it's easier to contribute to your IRA throughout the year instead of trying to do it in the last few months before the deadline. So whether you work to finish out your 2025 contributions or make plans to contribute from the start in 2026, try to create a plan for monthly contributions that will help set you up for the secure future you deserve.

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