As 2025 draws to a close, numerous people reflect on their retirement savings goals and realize they did not contribute as much as they had originally planned. Life’s unforeseen challenges, such as job loss or substantial expenses, can easily disrupt even the best-laid savings strategies. Others may have aimed for aggressive saving but found the sacrifices required to stay within their budgets too demanding to maintain. If you managed to save anything for retirement in 2025, that is an accomplishment worth recognizing. However, if you had hoped to contribute more, it is important to know that your opportunity is not necessarily over. Certain retirement-related accounts allow you to make contributions for the 2025 tax year up until the tax filing deadline in April 2026.
Accounts Accepting 2025 Contributions Beyond Year-End
While some plans, notably 401(k)s, require all contributions to be made within the calendar year, several other account types permit a longer window. Specifically, Individual Retirement Accounts (IRAs), Health Savings Accounts (HSAs), and certain retirement vehicles available to self-employed individuals accept contributions for the 2025 tax year until April 15, 2026.
Depositing additional funds into these accounts before the deadline can serve multiple purposes. First, bolstering your retirement nest egg at this stage can help enhance your future financial security. Second, for accounts other than Roth IRAs, making these contributions can reduce your taxable income for 2025, potentially leading to a larger tax refund. Finally, since these contributions are applied to the 2025 tax year, you preserve your full contribution limits for 2026, allowing for potentially larger savings next year if desired.
Key Considerations When Making Late Contributions
Making a contribution for the prior tax year during the early months of the current year is administratively similar to contributing during the calendar year itself. The critical difference lies in ensuring your plan administrator applies your contribution to the intended tax year, which often requires direct communication to confirm instructions. Failure to correctly designate the tax year can result in your deposit being counted toward the wrong year's limits, risking noncompliance and penalties.
Before proceeding, it is essential to verify the precise contribution caps for the 2025 tax year to ensure your additional contributions stay within legal limits. For IRAs, individuals under age 50 may contribute up to $7,000, while those 50 and older can contribute an additional $1,000 as a catch-up provision, totaling $8,000.
Health Savings Accounts have different contribution limits depending on your coverage status. Individuals with qualifying high-deductible health plans (HDHPs) and single coverage can contribute up to $4,300 for 2025, while those with qualifying family coverage may contribute as much as $8,550. Additionally, a $1,000 catch-up contribution is permitted for account holders aged 55 and older.
For self-employed individuals, the allowed contribution is the lesser of 25% of net self-employment income or $70,000 for 2025.
An important eligibility condition for making an HSA contribution is enrollment in a qualifying HDHP, defined for 2025 as one with a minimum deductible of $1,650 for single coverage or $3,300 for family coverage.
When preparing to make these contributions, contacting your plan administrator in advance is advisable. They will provide the necessary procedures to ensure your contribution is properly coded as pertaining to 2025.
Opting Out of Prior-Year Contributions
For those who prefer not to navigate the additional steps involved in making prior-year contributions, starting fresh in 2026 remains a valid option. Contributions made after the tax deadline are generally applied toward the current tax year. Most plans by default assume contributions belong to the ongoing calendar year unless specified otherwise.
Contributions in 2026 can be made as lump sums to any of the above-mentioned accounts or integrated into regular payroll deductions when contributing to a 401(k). Consistency and sustainability in your saving plan are crucial, so selecting an approach that fits well with your individual circumstances is recommended. Regular assessment and adjustment of your contribution strategy during 2026 can help ensure it remains effective and aligned with your financial goals.