Points to know:
- You can make IRA contributions up to 15 months before the tax-filing deadline.
- The earlier you contribute, the sooner compounding can help your investments grow.
- Some circumstances might prevent you from contributing; we discuss how to handle them.
- Consider the earnings potential―not just for yourself but for others in your life.
A penny saved is a penny earned. So why not save sooner?
You have just over 15 months to make an IRA contribution for a particular tax year. For example, you have from January 1, 2021, through the tax-filing deadline of April 18, 2022, to make a contribution to your IRA for the 2021 tax year. It seems like a sizable length of time, but it’s one not all investors are taking full advantage of.
Only a small portion of investors make their contributions early, and many investors wait until the last possible moment to contribute. Although these contributions are applied before the deadline, you could be missing out if you wait.