🗂️Keep in Mind The Best Time of Year to Contribute to Your IRA Is Now

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The start of the new year is a perfect time to resolve to max out contributions to your retirement accounts before April. You should work IRA contributions—traditional or Roth—into your budget all year long. In 2025, if you're under age 50, you can contribute up to $7,000 across one or more IRAs. If you're age 50 or older, the limit is $8,000. And the sooner you can invest your IRA money, the more time it has to potentially grow through compounding.

So while you should grow your nest egg consistently throughout the year, there is a best time of year to put money into your IRA, and it's right now.

Why you should contribute to your traditional or Roth IRA right now​

You can make an IRA contribution for a given year anytime between Jan. 1 and the tax-filing deadline of the following year (usually April 15). So, technically, you can keep making 2024 IRA contributions until April 15, 2025—but I don't recommend it. Not when you can instead start making 2025 IRA contributions for an April 15, 2026 deadline.

By making your IRA contribution in January or February, that money can be invested and start accumulating potential returns right away. The extra months compounding could make a big difference. Consistency is key—even small, regular contributions add up over decades.

Remember, you can make contributions any time throughout the year. Some other good times to consider adding money to your retirement account include:

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  After a bonus or tax refund. Got an influx of cash from a work bonus or tax refund? Consider putting some or all of it into your IRA to give your retirement savings a healthy boost. The first few months of the year is often when people receive lump sums that can be put straight into retirement accounts.
  
  
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  When you get a raise. If your salary goes up, consider putting all or part of that raise toward increasing your retirement contributions. This can be a relatively painless way to boost your IRA contributions over time without noticeably impacting your take-home pay.
  
  
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  By the tax deadline. You technically have until your tax filing deadline (usually April 15) to make IRA contributions for the previous year. Try to make contributions by this date.
  

If nothing else, right now is a fresh start for savings goals. A new year brings a clean slate for reaching your financial targets. By front-loading your IRA contribution for the year, you take advantage of momentum and enthusiasm for saving money in 2024. And motivation hacks aside—mathematically, contributing early in the year gives your investment more time to potentially grow.

The bottom line​

Try to make IRA contributions early in the calendar year if you can. The sooner you get your money into the account, the sooner it can start growing tax-deferred. Making your contribution in January, February or March maximizes the amount of time your money is invested.

When it comes to retirement, the key is to start saving early (compound interest rules!) and use a mix of accounts to build your retirement funds. Here are our guides to opening an IRA and opening a 401(k).
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