Don’t Miss the 2025 IRA Contribution Deadline

You have until April 15, 2026, to make contributions to a traditional or Roth IRA for the 2025 tax year. Don’t miss this deadline – any contributions made after April 15th will go towards the 2026 tax year.

Depending on your situation, your contribution may reduce your taxable income or provide valuable tax-free income later in retirement. Even if you don’t qualify for a deduction, contributing to an IRA can still be a smart financial move.

How Much Can You Contribute?

For 2025, the contribution limit is $7,000. Taxpayers 50 and older can contribute an additional $1,000 catch-up amount, bringing their total allowed contribution to $8,000.

Usually, you can't contribute more than your earned income. But a spousal IRA lets you use the working spouse's income for contributions if one spouse isn't employed.

Keep in mind, the annual limit applies across all IRAs combined. So, if you wanted to diversify your contributions across your traditional and Roth IRA accounts, you could – as long as the total contribution amounts to $7,000.

Traditional IRA

If you qualify, traditional IRA contributions may lower your current tax bill, and your savings grow tax-deferred. Withdrawals in retirement are taxed as income, but early withdrawals before reaching the age of 59½, will trigger a 10% penalty.

You can generally deduct the full amount if neither you nor your spouse is covered by a workplace retirement plan. If you are covered, the deduction phases out based on income.

2025 Income Phaseouts for Deductions

• Single/Head of Household: $79,000 – $89,000

• Married Filing Jointly (covered): $126,000 – $146,000

• Married Filing Jointly (spouse covered): $236,000 – $246,000

• Married Filing Separately: $0 – $10,000

Roth IRA

Roth IRA contributions aren’t deductible, but qualified withdrawals are tax-free in retirement.

2025 Roth Contribution Income Limits

• Single/Head of Household: $150,000 – $165,000

• Married Filing Jointly: $236,000 – $246,000

• Married Filing Separately: $0 – $10,000

If your income exceeds these limits, you can’t make direct contributions.

Don’t Qualify? You Still Have Options

High-income earners can make nondeductible traditional IRA contributions, which grow tax-deferred. Contributions are withdrawn tax-free and only your earnings are taxed.

Also consider the “backdoor Roth IRA” strategy: make a nondeductible contribution to your traditional IRA and convert those funds into a Roth IRA. Because you’ve already paid taxes on the contribution, you’ll only owe taxes on any earnings generated before the conversion.

Final Thoughts

Making a 2025 IRA contribution can help you lower your taxes today or build tax-advantaged income for the future. Either way, it’s a valuable opportunity to strengthen your retirement savings.

Remember:

• The tax deadline is April 15, 2026

• Filing a tax extension does not extend your contribution deadline

• Be sure to designate your contribution for 2025, not 2026

If you have questions about the 2025 IRA contribution deadline or want help determining the best strategy for your situation, consult with our tax professionals.