Saving for your retirement is one of the most powerful steps you can take toward long-term financial security. With another tax season underway, now is the perfect time to make sure you are taking full advantage of your IRA options. But keep an eye on the calendar—the contribution deadline is fast approaching.
IRA Contribution Deadline: April 15
For most taxpayers April 15 is both “Tax Day” and the final day to make traditional or Roth IRA contributions for the prior year. For 2025 IRA contributions, you may contribute 100% of earned income or $7,000, whichever is less, or $8,000 if you are age 50 or older (including the $1,000 catch-up contribution).
Important: Filing an extension does not extend your 2025 IRA contribution deadline.
Who Can Contribute
- Anyone with earned income.
- If married, you can make spousal IRA contributions if you don’t have earned income, as long as your spouse is working.
- There is no age limit for making traditional or Roth contributions.
Roth IRA
- Eligibility to contribute to a Roth IRA depends on your tax filing status and your modified adjusted gross income (MAGI).
- Contributions are not tax deductible and do not need to be reported on your income tax return.
Traditional IRA
- Contributions may be tax deductible depending on your circumstances.
- All contributions—deductible or not—must be reported on your tax return.
The annual contribution limit applies per person, not per account. If you have both a traditional and Roth IRA, you can divide your total contribution between them however you choose, but the entire amount ($7,000 or $8,000, as applicable) cannot be exceeded.
Disaster-Related Filing Extensions
If you live in a federally declared disaster area, you may automatically receive additional time to file your tax return and make IRA contributions. These automatic disaster-related extensions are updated regularly, so check the IRS website: Tax relief in disaster situations | Internal Revenue Service (irs.gov) to see if you qualify.
Use Your Tax Refund to Fund an IRA
Are you expecting a tax refund? With IRS Form 8888, you can direct deposit your tax refund into up to three accounts, including IRAs. This is a simple way to turn your refund into retirement savings if you haven’t filed your tax return yet.
A few things to remember:
- Many financial institutions will treat the deposit as a 2026 IRA contribution (not for 2025).
- For 2026, the IRA contribution limit increased to $7,500 ($8,600 if you are age 50+) or 100% of your earned income if it is less.
- Contact your financial institution beforehand for correct routing and account information.
- Most IRS refunds are issued within three weeks when you file electronically, and last year the average federal income tax refund was just over $3,000. Directing your refund into an IRA is a simple, effective way to avoid the temptation of spending it on non-essential purchases and instead put those dollars to work for your retirement.
Need Guidance?
If you’d like help getting started—or want to review your retirement goals to determine whether a traditional or Roth IRA will work better for you—speak with your Benjamin Edwards financial advisor.
IMPORTANT DISCLOSURES: The information provided is based on internal and external sources that are considered reliable; however, the accuracy of this information is not guaranteed. This piece is intended to provide accurate information regarding the subject matter discussed. It is made available with the understanding that Benjamin F. Edwards is not engaged in rendering legal, accounting or tax preparation services. Specific questions on taxes or legal matters as they relate to your individual situation should be directed to your tax or legal professional.