Deadline for 2025 IRA Contributions Approaches April 15 The deadline for 2025 individual retirement account (IRA) contributions is April 15, marking the final opportunity for investors to make deposits for the tax year. This date also coincides with a surge in IRA contributions, as many individuals rush to meet the deadline. Fidelity Investments reported that during the two weeks leading up to March 20, average IRA contributions rose 18% compared to the prior five weeks, with nearly three-quarters of these deposits directed toward after-tax Roth IRAs rather than traditional pre-tax IRAs. For 2025, the IRA contribution limit is set at $7,000, with an additional $1,000 allowed for investors aged 50 or older, provided they meet the income requirements. However, experts caution that investors must carefully assess their modified adjusted gross income (MAGI) before making contributions. MAGI, a key factor in determining eligibility for Roth IRA contributions or traditional IRA deductions, can be complex to calculate. Rita Assaf, vice president of retirement offerings at Fidelity Investments, emphasized that many investors overestimate their contribution limits due to misunderstandings about MAGI. Roth IRA eligibility depends on MAGI thresholds. For single filers, contributions are allowed if MAGI is below $150,000, with the phase-out range extending to $165,000. Married couples filing jointly can contribute if their MAGI is under $236,000, with a phase-out starting at $246,000. The phase-out reduces the contribution limit as MAGI increases, effectively limiting the amount investors can contribute. Traditional IRA contributions, on the other hand, offer a tax deduction but require careful consideration of MAGI and workplace retirement plan participation.#irs #fidelity_investments #rita_assaf #joon_um #roth_iras
