Fortunately for retirement savers, the IRS allows some flexibility in funding traditional or Roth IRAs. You have until tax day of the following year to make contributions.
In other words: Your last day to make an IRA contribution for tax year 2024 is April 15, 2025. If you file an extension on your return, your ability to contribute to an IRA is not extended, however.
Knowing how long you have to make an IRA contribution is important, as it can help you save a little more, and potentially reap some tax benefits.
What Is the IRA Contribution Deadline?
A conventional tax year extends from January 1 of the year through December 31 (corporate tax years can be different). However, the deadline for individuals making the maximum annual IRA contribution doesn’t follow that timeline; generally you have until tax day in April of the following year.
In most years, the deadline for filing your tax return is April 15. However, if the 15th falls on a holiday or weekend, the deadline is generally pushed to the next business day.
The deadline also applies to both annual contributions and catch-up contributions for regular IRAs. A catch-up contribution of $1,000 is allowed for taxpayers aged 50 or older.
Again, if you file an extension on your tax return, that will not give you extra time to contribute to an ordinary IRA. That said, the rules related to contribution deadlines and extensions are somewhat different for other types of IRAs, like SEP and SIMPLE IRAs designed for those who are self-employed or own small businesses. (see below).
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Traditional, Roth, SEP, and SIMPLE IRA Contribution Deadlines for 2024
Contributions limits and deadlines vary, depending on the type of IRA you have.
| IRA Type | 2024 Annual Contribution Limit | Contribution Deadline for the 2024 Tax Year |
|---|---|---|
| Traditional IRA | $7,000, or $8,000 if you’re 50 or older | April 15, 2025 |
| Roth IRA | $7,000, or $8,000 if you’re 50 or older | April 15, 2025 |
| SEP IRA | 25% of compensation or $69,000, whichever is less (SEP plans do not have catch-up provisions) | April 15, 2025, unless the employer filed an extension; the extension deadline is Oct. 15, 2025 |
| SIMPLE IRA | $16,000, or $19,500 if you’re 50 or older | January 30, 2025 for employee contributions; April 15, 2025 for employer contributions (or Oct. 15, 2025, if there’s an extension) |
How IRA Contributions Work
Contributions refer to the funds you deposit in a retirement account like an IRA (but also a 401(k) or 403(b)). Most retirement accounts have rules that govern the maximum amount you can contribute per year and the tax implications for contributing to one type of account vs. another.
• Generally speaking, traditional IRAs, as well as SEP and SIMPLE IRAs, are considered tax-deferred accounts. That means your contributions are typically tax deductible in the year you make them (though some restrictions apply if you or your spouse is covered by a workplace retirement account). But you will owe taxes on withdrawals.
• The money you contribute to a Roth IRA is an after-tax contribution, and is not tax deductible. Qualified withdrawals after age 59 ½ are tax-free, however.
Roth accounts have more restrictions than other types of IRAs. One important distinction is the income cap: For tax year 2024: Single filers whose modified adjusted gross income (MAGI) is $161,000 or higher, and those who are married, filing jointly with a MAGI of $240,000 or higher, are not eligible to open a Roth IRA.
Other Types of IRAs
In addition to the ordinary traditional and Roth IRA options, self-employed people, sole proprietors, and those with small businesses can set up SEP or SIMPLE IRAs.
• A SEP IRA, or Simplified Employee Pension IRA, is a retirement plan that can be set up by employers, sole proprietors, or the self-employed. Employers make contributions for employees (employees don’t contribute). Employers are not required to contribute to a SEP every year.
• A SIMPLE IRA, or Savings Incentive Match Plan for Employees IRA, is similar to a 401(k) but for businesses with 100 or employees or less. Both the employer and the employees can contribute to a SIMPLE IRA.
Both SEP and SIMPLE IRAs are tax-deferred accounts, similar to a traditional IRA. Contributions in most cases are tax deductible, but the account holder must pay ordinary income tax on withdrawals. The rules and restrictions governing withdrawals vary, so you may want to check the details at IRS.gov or consult a tax professional.
Pros and Cons of Maxing Out Your IRA Early or Late
Maxing out your IRA, i.e., making the full annual contribution allowed, could help you save more for retirement. And as with any contribution amount, there can be tax benefits depending on the type of IRA you’re funding.
Whether it makes sense to contribute earlier in the year or wait until the contribution deadline depends on your financial situation.
Here are some of the advantages and disadvantages of maxing out an IRA earlier vs. later.
| Maxing Out an IRA Early | Maxing Out an IRA Late | |
|---|---|---|
| Pros |
• Maxing out your plan sooner allows it more time to grow, potentially. Growth depends on the investments you choose for your IRA; there are no guarantees of returns and there is always a risk of loss. • If your financial situation changes you’ll have the reassurance of knowing that your plan is fully funded for the year. |
• Waiting to max out your IRA until tax day could give you more time to max out your 401(k) before the year-end contribution deadline. • If you have a Roth IRA, waiting to make contributions can help you better gauge the maximum amount you can save, based on your income. |
| Cons |
• Fully funding an IRA early in the year could leave you short financially if you need money for other goals. • There’s a risk of contributing too much to a Roth IRA, based on what your income and filing status allows, which could trigger a tax penalty. |
• Delaying contributions might mean missing out on potential growth (but there are no guarantees your money will grow). • Waiting too long could result in missing the annual contribution deadline altogether if you come up short and don’t have enough money to save. |
What If You Contribute Too Much to Your IRA?
If you contribute too much money to your IRA, the IRS can treat it as an excess contribution. Excess IRA contributions can happen if you:
• Aren’t keeping track of contributions throughout the year
• Miscalculate the amount you can contribute to a Roth IRA, based on your income and filing status
• Make an improper rollover contribution
If you make excess IRA contributions, the IRS can apply a 6% penalty for each year the excess amounts remain in your account. You can avoid the 6% tax by withdrawing excess contributions and any earnings from those contributions by the tax filing deadline or extension deadline if you filed one.
The Takeaway
If you have any type of IRA, it’s important to mark your calendar each year with the contribution deadline so that you can plan the cadence of your contributions in relation to other expenses. Because most types of IRAs allow additional time for contributions, this can help you save more — and possibly reap additional tax benefits.
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FAQ
What is the last day to contribute to an IRA for tax year 2024?
The traditional and Roth IRA contribution deadline for the 2024 tax year is April 15, 2025. If you’re an employer, or self-employed individual contributing to an SEP IRA, you’d have until tax day to contribute, unless you filed a tax extension. In that case, you’d be able to use the extension deadline instead.
Can I contribute to an IRA after December 31?
Yes, you can contribute to an IRA for the current tax year up until the federal tax deadline, which is typically April 15 of the following year. In years where the federal tax deadline falls on a holiday or weekend, the date is pushed up to the next business day.
Can I open an IRA in 2025, but contribute for 2024?
If the 2025 tax year is already underway, and the April tax deadline has passed, you cannot open an IRA and make contributions for the 2024 tax year. You could, however, open a traditional or Roth IRA before the April 2025 tax filing deadline and fund it with contributions for the 2024 tax year.
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