Contributions to individual retirement accounts (IRAs) can be made for the previous year up to the tax filing deadline of the current year. However, the tax deductions for 澳洲幸运5官方开奖结果体彩网:401(k) plan contributions and most other 澳洲幸运5官方开奖结果体彩网:salary-deferral retirement plans usually apply only to the calendar year in which they are actually withheld from the taxpayer's paycheck. The following s♎ignificant differences can affect your retirement savings.

Non-401(k) Plans

The combined individual contribution limit for 澳洲幸运5官方开奖结果体彩网:Roth IRAs and traditional IRAs in the 2024 tax year is $7,000 ($6,500 in 2023). Those age 50 or older can make a catch-up contribution of an additional $1,000 in both 2023 and 2024.

Although contributions to traditional IRAs are tax-deductible, the deduction may be reduced or eliminated if the account holder or their spouse is covered by a retirement plan at work. The money grows tax-free while it remains in the account and is taxed at withdrawal.

Money in a Roth IRA grows tax-free and can be withdrawn tax-free in retirement, as long as it's been five years since you first contributed to the account. Contributions are not tax-deductible. 澳洲幸运5官方开奖结果体彩网:Income limits restrict the abilit💧y to make contributions or deduct them from taxable income♔.

401(k) Plans

The 401(k) contribution is $23,000 in 2024. (It 2023, it's $22,500.) Plan participants who are 50 or older at the end of the calendar year can make an additional catch-up contribution of up to $7,500 in 2023 and 2024.

Contributions to a 401(k) are generally due by the end of the calendar year. For instance, assume that an employee makes an election to defer part of a bonus to be received for 2024. The bonus is based on 2024 compensation but is paid on Jan. 31, 2025. The amount deferred from the bonus will apply to the employee's 2025 salary deferral contributions.

Plans may also vary. Contributions for a prior year may not be allowed because an em﷽ployee is limited to making contributions through payroll deductions.

Employers may have a longer time period with which to make matching contributions for a given year of a plan. This means an employee technically can make 401(k) contributions as late as🔯 the deadline for their company to file its taxes, including any extensions.

This additional time becomes especially apparent in the case of 澳洲幸运5官方开奖结果体彩网:self-employed savers, who might not contribute to their solo 401(k) plan for a given year until tax time the following year. The ability to do so can depend on the business type and whether the contribution is by employee deferral or through a profit-sharing component.

The Bottom Line

Generally, the 401(k) has a hard contribution deadline at the end of the calendar year. But you can check with your 澳洲幸运5官方开奖结果体彩网:human resources department to see if you are permitted to make contributions in the new year—before𝓀 tax time.