A Step-by-Step Guide to the IRA Contribution Deadline

5 steps to maximize your IRA contributions before the April 15 deadline so you can save on taxes and grow your retirement faster.

Did you know you can still make IRA contributions for last year even after the calendar has turned? It’s true. You have until April 15, 2026, to fund an IRA for the 2025 tax year, and that’s a huge opportunity most people miss.

Think of it as a second chance. Whether you forgot to contribute last year, didn’t have the cash at the time, or just didn’t know this was an option, that window is still open. And taking advantage of it can make a real difference in your retirement savings and your tax bill.

Here’s what we’ll cover:

1. Why the prior-year window matters
2. How to fund your IRA step by step
3. What to do if your income is too high
4. A hidden Roth IRA benefit most people overlook
5. Key numbers to know

Why the prior-year window matters

You generally have until the tax filing deadline, April 15, 2026, to make an IRA contribution that counts toward the 2025 tax year. That means you can use income you earned last year to put money into a tax-advantaged account, even though we’re already in 2026.

Here’s why that’s so valuable. By maxing out your 2025 contribution now, you leave your 2026 limits completely untouched. So instead of only contributing for one year, you could potentially fund both your 2025 and 2026 IRAs in the same calendar year. That’s up to $14,500 for someone under 50 ($7,000 for 2025 plus $7,500 for 2026) or $16,600 if you’re 50 or older ($8,000 for 2025 plus $8,600 for 2026).

And even if you’ve already filed your 2025 tax return, you can still make the contribution. You may just need to file an amended return if it changes your tax situation.

How to fund your IRA step by step

This doesn’t have to be complicated. Just follow these steps in order to make sure your money ends up in the right place.

Step 1: Check your eligibility. Look at your Modified Adjusted Gross Income, or MAGI. That’s basically your total income with a few adjustments. Your MAGI determines whether you can deduct a Traditional IRA contribution or whether you qualify for a direct Roth IRA contribution.

Step 2: Choose the right account. Decide between a Traditional IRA and a Roth IRA. A Traditional IRA gives you a tax break now because your contributions may be deductible, which lowers your taxable income this year. A Roth IRA gives you a tax break later because your money grows tax-free and comes out tax-free in retirement.

Step 3: Tell your financial institution what year it’s for. This is the step people miss. When you transfer the money, you’ll be asked whether the contribution is for 2025 or 2026. Make sure you select 2025 so it counts toward your prior-year limit.

Step 4: Know your limits. For 2025, you can contribute up to $7,000 if you’re under 50 and $8,000 if you’re 50 or older. These limits apply across all your IRAs combined, not per account.

Step 5: Invest the money. Once the contribution hits your IRA, make sure it’s actually invested. A common mistake is leaving the cash sitting in the account without buying any investments. Choose a low-cost fund that matches your risk level and time horizon so your money can start working for you.

What to do if your income is too high

What if you make too much to contribute to a Roth IRA directly? For 2025, the ability to contribute starts to phase out at $150,000 for single filers and $236,000 for married couples filing jointly. If you’re above those limits, you still have an option.

It’s called a Backdoor Roth conversion, and here’s how it works:

1. You contribute to a Traditional IRA (this contribution won’t be tax-deductible, but that’s okay)
2. You immediately convert those funds into a Roth IRA
3. As long as you don’t have other Traditional IRA balances, you’ll owe little to no tax on the conversion

This strategy lets high earners get money into a Roth IRA and enjoy tax-free growth even though they’re technically over the income limits.

One thing to be aware of: there’s something called the pro-rata rule. If you have money in other Traditional IRAs, the IRS looks at all of your Traditional IRA balances when calculating the tax on your conversion. So if this applies to you, be sure to talk with your accountant or financial advisor before doing the conversion.

A hidden Roth IRA benefit most people overlook

Here’s something a lot of people don’t realize. To withdraw Roth IRA earnings completely tax-free, the account has to have been open for at least five tax years. That’s called the five-year rule.

Now here’s the part that matters for this deadline. If you make a 2025 contribution before April 15, 2026, the IRS considers your Roth IRA as having been “started” on January 1, 2025, even if you made the contribution in March of 2026. That means you just gained an entire extra year of progress toward that five-year clock.

For example, if you open a Roth IRA and make a 2025 contribution in February of 2026, your five-year clock started on January 1, 2025. That means your earnings could be tax-free as early as January 1, 2030, instead of having to wait until 2031. One contribution, one year closer to total tax-free flexibility.

Key numbers to know

• 2025 IRA contribution limit: $7,000 (under 50) / $8,000 (50 and older)
• 2026 IRA contribution limit: $7,500 (under 50) / $8,600 (50 and older)
• 2025 Roth IRA income phase-out (single): starts at $150,000
• 2025 Roth IRA income phase-out (married filing jointly): starts at $236,000
• Deadline to make a 2025 contribution: April 15, 2026

Making your move

The IRA deadline isn’t just a tax date. It’s a chance to put more money to work for your future. Whether you’re using a Traditional IRA to lower your tax bill or a Roth IRA to build tax-free retirement income, contributing before April 15 is one of the smartest financial moves you can make right now.

If you’re not sure which IRA is right for you or how to take advantage of the prior-year window, one of our advisors would be happy to walk you through it.

Sources

https://www.irs.gov/publications/p590a

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

https://www.tiaa.org/public/retire/financial-products/iras/ira-contributions-tax-benefits/income-and-deduction-limits

This information is provided as general information and is not intended to be specific financial guidance.  Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives. The source(s) used to prepare this material is/are believed to be true, accurate and reliable, but is/are not guaranteed.