A lot of people have the goal of maxing out an IRA each year. And since IRAs have smaller contribution limits than 401(k)s, maxing out may be doable.
But if you didn't max out your 2025 IRA, you're no doubt in good company. You may have intended to max out, but if a huge medical or home repair bill came up out of the blue, that may have thwarted your plans. Or, it may be that you struggled to max out because everything in life cost more. (Thanks, inflation.)
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The good news is that if you didn't max out your 2025 IRA, there's still time to do so. And sneaking more money into that account could benefit you in more ways than one.
You didn't miss the boat
With a 401(k) plan, you only have until Dec. 31 to make contributions for each calendar year. With an IRA, you have until the following year's tax-filing deadline.
What this means is that if you didn't manage to max out your IRA in 2025, it's not too late to finish making contributions. You have until this year's tax-filing deadline, which is April 15, to finish funding your 2025 IRA.
As a reminder, in 2025, IRA contributions maxed out at $7,000 for savers under 50. If you were 50 or older in 2025, you were also eligible for a $1,000 catch-up contribution, bringing your total allowable contribution for the year to $8,000.
It pays to max out your 2025 IRA
Putting more money into last year's IRA might seem like a tall order. At this point, you may be more focused on 2026 financial goals. But sneaking extra money into your 2025 IRA could benefit you in a couple of ways.
First, the more money you have in that account, the more you can invest for a larger nest egg down the line. Secondly, unless you're saving in a Roth IRA, the money you put into your retirement savings can shield some of your income from taxes. It could also result in a smaller tax bill this April.
If you took gains in a taxable brokerage account last year, or if you earned income from a side hustle you didn't pay taxes on, that could leave you owing the IRS money when you file your 2025 return. But if you're able to contribute more to last year's IRA, you might manage to whittle that tax bill down.
You should also know that it's not just IRAs that give you extra time to make contributions. Health savings accounts (HSAs) also give you until the following year's tax-filing deadline to finish funding your account. So if you had an HSA last year but didn't contribute as much as you were allowed to, there's still time to add to that account and enjoy the tax breaks that come with doing so.
