One of the most common misunderstandings about IRAs is timing.
You do not have to make your IRA contribution by December 31 for it to count for that year. You generally have until the federal tax filing deadline in April of the following year to contribute for the prior tax year.
So, a contribution made in early 2026 can still count toward your 2025 IRA limit — as long as you clearly designate it as a 2025 contribution when you make the deposit.
This flexibility can be especially helpful if:
It’s natural to think, “I’ll just focus on this year instead.”
But retirement savings works best when your money has more time to grow. The sooner you contribute, the more you'll earn in the long run. One extra contribution can mean:
More long-term growth
Greater flexibility later
One less missed opportunity
If contributing will not strain your finances, using the remaining window before the deadline can be a smart financial decision.
$7,000 if you are under age 50
$8,000 if you are age 50 or older (this includes a $1,000 catch-up contribution)
These limits apply to the total amount you contribute across all IRAs combined — both Traditional and Roth.
It’s also important to remember: you do not have to contribute the full amount. Smaller contributions still make a difference over time. Progress matters more than perfection.
Here are a few realistic ways people often find the funds during tax season:
1. Use Part of Your Tax Refund
Instead of spending the full refund, consider directing a portion toward your IRA.
2. Redirect a Short-Term Savings Goal
If you’re saving for something non-essential and can delay it, that money could strengthen your retirement instead.
3. Cut One Temporary Expense
Skipping dining out for a few weeks or pausing a discretionary subscription may free up a few hundred dollars.
4. Make a Partial Contribution
You do not have to reach the maximum. Even $200 or $500 moves you forward.
Here’s something many people miss during tax season: you may qualify for the Saver's Credit.
The Saver’s Credit is a federal tax credit designed to reward low- and moderate-income taxpayers who contribute to a retirement account, including an IRA.
Depending on your income and filing status, you may be able to claim a credit worth up to 50% of your qualified retirement contributions (up to certain limits).
Unlike a deduction, which lowers your taxable income, a tax credit directly reduces the amount of tax you owe. That can make a meaningful difference. Click here to learn MORE!1
1By clicking the link, you're leaving the CACL Federal Credit Union website and heading to an external website. The Credit Union isn't responsible for the content or privacy policies of that website.
Before making a 2025 IRA contribution, keep these points in mind:
If you’ve already filed your tax return, you may still be able to contribute — but you might need to file an amended return if you’re claiming a deduction. A qualified tax professional can guide you through that process.
If you have not yet reached your 2025 IRA contribution limit, you may still have time before the April tax filing deadline. This window offers an opportunity to:
Tax season doesn’t have to be stressful. It can also be a moment to make thoughtful financial moves that benefit your future.
Retirement planning does not have to happen all at once. Small, consistent steps — even ones made close to the deadline — can add up over time.
If you’re unsure whether contributing makes sense for you, review your budget, check your eligibility, and consider speaking with a qualified tax advisor.