Tax Season Tip: Fund an IRA Before It's Too Late

Contributions to a traditional IRA can lower your tax bill and boost your retirement savings.

Published on Mar. 5, 2026

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Tax season is here, and one often-overlooked move taxpayers can make is contributing to an individual retirement account (IRA) before the April 15 filing deadline. Traditional IRA contributions are often tax-deductible, which can lower one's taxable income and potentially increase their tax refund. The 2025 contribution limit is $7,000 for those under 50 or $8,000 for those 50 and older, though income phase-outs apply if the taxpayer or their spouse is covered by a workplace retirement plan.

Why it matters

Contributing to an IRA is a smart way for taxpayers to lower their tax bill while also growing their retirement savings. This strategy is often overlooked as many people are focused solely on filing their returns and receiving their refunds. However, taking the time to fund an IRA can provide significant long-term benefits.

The details

Contributions to a traditional IRA are often eligible for a tax deduction, which lowers one's taxable income. This deduction can be claimed regardless of whether the taxpayer also contributes to an employer-sponsored 401(k) plan. The 2025 contribution limit is $7,000 for those under 50 or $8,000 for those 50 and older, though income phase-outs apply if the taxpayer or their spouse is covered by a workplace retirement plan.

  • The 2025 tax year contribution limit applies.
  • Contributions can be made up until the April 15, 2026 tax filing deadline.

The players

Traditional IRA

A type of individual retirement account that allows tax-deductible contributions, helping to lower taxable income.

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The takeaway

Taking the time to contribute to an IRA before the tax filing deadline is a smart financial move that can lower your tax bill while also boosting your retirement savings. This often-overlooked strategy is worth considering for taxpayers eager to maximize their refund.