IRA Contribution Taxes Shenandoah Valley Virginia

There’s Still Time: What You Should Know About the IRA Contribution Deadline

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There’s Still Time: What You Should Know About the IRA Contribution Deadline

As tax season approaches, so does an important opportunity to invest in your future. If you haven’t yet made your IRA contribution for 2024, there’s still time. The IRS allows contributions to be made up until April 15, 2025, and taking advantage of this window can offer valuable financial benefits.

Why the Deadline Matters

Contributing to an IRA before the deadline allows you to maximize your retirement savings and potentially reduce your taxable income for the 2024 tax year.

2024 Contribution Limits

For 2024, you can contribute up to:

  • $7,000 if you’re under age 50
  • $8,000 if you’re age 50 or older (thanks to the $1,000 catch-up contribution)

These limits apply to the combined total of your contributions to both Traditional and Roth IRAs.

Traditional IRA vs. Roth IRA

Traditional IRA:

  • Contributions may be tax-deductible, depending on your income and whether you’re covered by a retirement plan at work
  • Taxes are paid when you withdraw funds in retirement

Roth IRA:

  • Contributions are made with after-tax dollars
  • Qualified withdrawals in retirement are tax-free

Choosing the right IRA depends on your income level, current tax bracket, and long-term goals.

Who Can Contribute?

You must have earned income to contribute to an IRA. For Roth IRAs, eligibility phases out at higher income levels:

  • For single filers: eligibility phases out between $146,000 and $161,000
  • For married couples filing jointly: between $230,000 and $240,000

Last-Minute Strategy Tips

  • Review your 2024 income and tax situation to determine which type of IRA offers the best advantage
  • Make your contribution as early as possible to give your money more time to grow
  • Consider a consultation with your financial advisor to ensure your contributions align with your overall retirement strategy

Let’s Talk Before the Deadline

Don’t leave potential tax savings on the table. Our wealth advisors are here to help you make smart moves before the April 15 deadline. Reach out today to schedule a conversation and get the most out of your 2024 contributions.

This article is for informational purposes only and should not be considered tax or investment advice. Please consult your financial and tax professionals for guidance specific to your situation.

Investment and insurance products and services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. F&M Financial Services is a trade name of F&M Bank. Osaic Institutions and F&M Bank are not affiliated.

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