The 2025 calendar year has ended, but the opportunity to contribute to an Individual Retirement Account (IRA) for that tax year remains open until the federal income tax filing deadline.
The deadline to make a 2025 IRA contribution is April 15, 2026.
Contributions made between January 1 and April 15, 2026, can still count toward the 2025 tax year, provided the deposit is properly designated with the custodian as a prior-year contribution.
Several types of retirement accounts allow prior-year contributions.
Traditional and Roth IRA Contributions
Two of the most common IRA options allow prior-year contributions:
Traditional IRA
Contributions may be tax-deductible depending on income levels and whether the taxpayer participates in an employer-sponsored retirement plan.
Roth IRA
Contributions are made with after-tax dollars, but qualified withdrawals in retirement can be tax-free.
For 2025, the contribution limits are:
- $7,000 for individuals under age 50
- $8,000 for those 50 or older (includes a $1,000 catch-up contribution)
These limits apply across all IRAs combined, meaning the total contribution to Traditional and Roth accounts cannot exceed the annual maximum.
Earned Income Requirements and Income Limits
To contribute to an IRA, an individual must have earned income during the year, such as wages, salary, commissions, or self-employment income. Investment income does not qualify.
For married couples filing jointly, the earned income requirement may be satisfied if either spouse has sufficient earned income to cover both contributions. This is often referred to as a spousal IRA.
Eligibility to contribute to a Roth IRA is also subject to Modified Adjusted Gross Income (MAGI) limits. Higher-income taxpayers may see their allowable contribution reduced or eliminated through IRS phaseout ranges.
Similarly, the ability to deduct a Traditional IRA contribution may be limited if the taxpayer—or their spouse—is covered by an employer-sponsored retirement plan such as a 401(k). In those cases, the deductibility of the contribution may phase out depending on household income.
IRA Contribution Deadline for 2025
To count for 2025, IRA contributions must be made by April 15, 2026. Filing a tax extension does not extend the deadline for Traditional or Roth IRA contributions. Contributions made after that date would count toward the 2026 tax year instead.
When contributing early in the year, it is important to clearly designate the deposit as a 2025 contribution with the IRA custodian to avoid it being incorrectly categorized as a current-year contribution (in this case, 2026).
SEP-IRA Contributions for Self-Employed Individuals
Self-employed individuals may have additional flexibility through a SEP-IRA (Simplified Employee Pension).
Unlike Traditional or Roth IRAs, SEP contributions can typically be made up until the tax filing deadline, including extensions. For example, a taxpayer who files an extension for their 2025 tax return may have until October 15, 2026, to make a SEP contribution for 2025.
For 2025, SEP contributions may generally equal:
- Up to 20% of net self-employment income for sole proprietors or LLC owners, or
- Up to 25% of eligible compensation for incorporated businesses (such as S corporations or C corporations)
The overall contribution limit is $70,000, whichever amount is lower.
Coordinate with Your Tax and Financial Advisors
Having this additional time to fund your IRA can be a valuable opportunity for individuals who did not fully fund their retirement accounts during the year. The move can increase retirement savings and potentially save tax dollars.
Don’t forget to keep your financial planner and CPA informed about your IRA contributions so deposits are properly reported and applied to the correct tax year.
If you have questions about how IRA contributions fit into your broader retirement plan, don’t hesitate to contact an EKS Associates advisor.
