You Can Still Contribute $7,000 to a 2025 IRA Before April 15 -- Here's Who Qualifies

Retirement planning should always be a big part of your financial road map. Saving enough to live comfortably in retirement is not easy, so it's not something you'll want to leave to the last minute.

That said, if you're getting older and haven't prioritized your retirement savings as much as you might have hoped, there's no need to panic -- a little planning can go a long way.

In fact, people can take a big step in their retirement planning over the next few weeks by contributing up to $7,000 to an individual retirement account (IRA) before April 15. Here's who qualifies.

What is an IRA?

There are two main types of retirement accounts that most people will use at one point in their lives. Workers who are fully employed by a W-2 employer may have access to a 401(k) account, a retirement vehicle typically managed by financial advisors the company hires. Companies may also offer a match to employee contributions, which is a great perk.

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IRAs are for individuals, whether they're self-employed or don't have access to their company's retirement perks. These accounts are controlled by individuals who also choose how their money is invested. Opening an IRA is fast, easy, and free. Check out our list of the best IRA brokers to get started before Tax Day on April 15.

IRAs also have certain tax advantages. For instance, contributions to an IRA are pre-tax, meaning people can deduct them from their taxable income, lowering their overall tax bill. Contributions also grow on a tax-deferred basis and are then taxed as ordinary income when withdrawn. However, if withdrawals are made before age 59 1/2, there may be a 10% penalty unless the withdrawals are made for a qualifying reason, such as purchasing a first home.

Since IRAs offer tax advantages, workers can't make unlimited contributions. However, if you missed the boat on making 2025 contributions, there is still time.

Who can still contribute $7,000 to a 2025 IRA?

It's important to remember that IRA contributions must be made with earned income. In 2025, the contribution limit was $7,000 for people under 50. If you're over the age of 50, you are eligible to contribute $8,000, as the Internal Revenue Service allows for a $1,000 catch-up contribution. Keep in mind these limits tend to change annually. In 2026, the limits will rise to $7,500 for those under 50 and $8,600 for those 50 or older.

It's already 2026, so you may be wondering why I am still discussing 2025 contributions. The IRS allows people to make 2025 contributions up until the tax deadline on April 15.

So let's say you budgeted $200 per month for IRA contributions in 2025. That totals $2,400 in contributions, leaving room for another $4,600 in tax-deferred contributions. If you realize you have some savings available or recently came into some money, you could actually contribute the remaining $4,600 before April 15 and deduct it from your 2025 taxable income.

This allows people to further build their retirement savings while also saving on taxes. Maxing out your IRA contributions is not a necessity, especially when you're younger and don't have as much savings, because, at the end of the day, you need to cover your daily and annual expenses.

But as you get older, it's important to consider whether you have enough income to set aside, because the longer you let your money grow, the more you can take advantage of compounding, which is most powerful when significant savings have been built.

Even if you're in your 40s or 50s and don't have a lot saved, if you're able to max out IRA contributions and invest them wisely, you could grow a nice pot of retirement savings.

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