Didn't Max Out Your 2025 IRA? Here's Some Good News.

Core Insights - Many individuals aim to max out their IRA contributions each year, but various life events, such as unexpected medical bills or inflation, can hinder this goal [1][2] Group 1: IRA Contribution Deadlines - Unlike 401(k) plans, which have a contribution deadline of December 31, IRAs allow contributions until the tax-filing deadline of the following year, which is April 15 for 2025 contributions [3] - The maximum IRA contribution for 2025 was $7,000 for individuals under 50, and $8,000 for those aged 50 and older due to a catch-up contribution [4][8] Group 2: Benefits of Maxing Out IRA - Contributing more to the 2025 IRA can enhance long-term investment potential and provide tax benefits, potentially reducing the tax bill for the current year [5][6] - Additional contributions can help offset tax liabilities from gains in taxable accounts or unreported income from side hustles, thereby lowering the overall tax burden [7]