An individual retirement account (IRA) is one of the best places to put your retirement savings, because it offers tax-advantaged growth and a lot of control over your investments. You also get to choose when you want to pay taxes on your funds — in retirement with a traditional IRA, or upfront with a Roth IRA.

But as with all retirement accounts, the government imposes limits on when and how much you can contribute to your IRA. In the latter case, IRAs can be a bit restrictive, with yearly contribution limits of just $7,000 for adults under 50 and $8,000 for adults 50 and older in both 2024 and 2025. But IRAs are pretty flexible with the timing of your contributions. Here’s how you can still make a 2024 IRA contribution.

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The deadline for 2024 IRA contributions

The IRS lets you make 2024 IRA contributions until the tax deadline — April 15, 2025. This is the deadline even if you request an extension to file your taxes.

If you make a 2024 contribution in 2025, it’s considered a prior-year contribution. The process is similar to a regular contribution. However, you may want to contact your IRA provider to ensure it applies your contribution to the 2024 tax year instead of the 2025 tax year. Otherwise, it may default to a current-year contribution.

Though you have plenty of time, you should make your 2024 contribution before you submit your 2024 tax return. If you wait until after, you’ll have to file an amended tax return, and no one wants to do their taxes more than once.

Is a prior-year contribution right for you?

A prior-year contribution could make sense if you want to preserve your full $7,000 or $8,000 contribution limit for 2025. If you plan to contribute to a traditional IRA, a prior-year contribution could also be a smart way to reduce your 2024 tax liability. Contributions to one of these accounts reduce your taxable income for the year.

If neither of these things apply, you may be better off making a 2025 IRA contribution instead. You won’t have to worry about making your contribution by the tax deadline, or following up to ensure your IRA provider applies it to the correct year.

If you go ahead with the prior-year contribution, think carefully about where you want to put your funds. A traditional IRA might be the way to go if you’re in a high tax bracket today and you expect to be in a lower one in retirement. It might be your only option if your income exceeds the Roth IRA income limits.

However, those in lower tax brackets might prefer a Roth IRA. Though it doesn’t give you a tax break this year, it lets you take tax-free withdrawals in retirement. This can be a big help when you’re trying to keep your retirement tax bill down.

It’s best not to put off your prior-year IRA contributions too much longer, especially if you tend to file your taxes early. Get yours out of the way, so you can focus on making new contributions for 2025.

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