How To Maximize Your 2024 IRA In The Next 2 Weeks (Yes, Really)

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Every year, the deadline for making contributions to your IRA (rather conveniently) falls on the same day as that year’s Tax Day. This means that you have until Tuesday, April 15th, 2025 to make any remaining contributions to your IRA for 2024 — just about 2.5 weeks from today — no matter whether you have a traditional or a Roth IRA.

You may be asking, why might I want to maximize contributions for 2024 rather than starting new contributions for 2025? The simple answer is that you still have plenty of time left in the year to make 2025 contributions. Time in the market is arguably the most important variable when it comes to investing, so if you’re not maxed out for 2024, you have time to both contribute more towards 2024 and strive to max out 2025 by the end of the year. Then, next year, you could focus purely on 2026. 

And if you’re looking for the simplest way to automate your IRA contributions, check out Betterment. Their automated investing tools simplify the complex and take care of the guesswork for you. With a Betterment IRA, your money is put to work—optimized day after day to help it grow for the long term. And with just a few weeks left to max out your IRA contributions for 2024, you can get to the finish line with an IRA through Betterment. Plus, you can even potentially deduct those contributions on your 2024 tax return (depending on which type you choose). Get started, be invested. Click here to sign up in minutes.

Once you’ve committed to contributing as much as you can to your IRA in the next few weeks, it’s time to make a plan. The contribution limit for 2024 is $7,000 (or $8,000 if you’re over 50), but don’t let that number scare you off — anything you’re able to contribute is absolutely worth your while. Here are some of our best tips for maximizing your contributions by April 15th: 

• Redirect earned interest. Have you been chipping away at a savings goal and contributing money to a high-yield savings account? These accounts (like the Betterment cash reserve account) are amazing for stashing your emergency fund or short-term savings goals, because they can make your money possibly earn more than it would in a checking or traditional savings account, while still keeping it easily accessible. Take a look at the interest you’ve earned on your savings in the past year: that’s money you wouldn’t have earned otherwise, and while keeping it in savings is a valid option, redirecting that towards your IRA could potentially give you a nice boost. Don’t use your emergency savings to fund your IRA, of course, but the interest on your savings may be up for grabs!

• Consider a two-week spend freeze. Spend freezes are kind of crash diet coded, and I would never recommend them for a long-term savings plan...but for a two-week challenge? They can totally help. You can even make a game out of it: enlist your partner, roommate or friend to join you, and make tons of plans together that involve spending zero dollars. Also be sure to take some time to make a solid plan for grocery shopping for those weeks, so you’re not tempted to go for pricey takeout (pro tip: grab a few frozen pizzas or other super easy “indulgence” meals that take zero effort). 

• Make a plan for your tax refund. I know timing for refunds heavily depends on the state you live in, but if you’re getting one or already got one and are still deciding what to do with it, definitely consider dropping it into your IRA. The less time you give yourself to waffle over that decision, the better — because the longer it sits in your checking account, the more opportunities you’ll give yourself to succumb to FOMO and use it on Sabrina Carpenter tickets (not that I’d blame you — but your future self will be grateful for more money in your retirement account!). 

At the end of the day, I want to stress that two weeks may not be a lot of time for some people. This means that you will only be able to contribute so much — but if you do make a plan, it will be a temporary sacrifice for some potential long-term benefits.