How to Catch Up on Retirement Savings Before Tax Season Ends

Retirement planning can be overwhelming, especially if you feel like you’re behind on savings. But the good news is that tax season offers a valuable opportunity to catch up. Whether you’re nearing retirement or just getting serious about saving, there are smart financial moves you can make before tax season ends to boost your retirement nest egg while maximizing tax advantages.

In this guide, we’ll explore strategies to help you increase your retirement savings before the tax deadline. These include maximizing tax-advantaged accounts, taking advantage of catch-up contributions, and leveraging tax credits and deductions.

1. Max Out Contributions to Tax-Advantaged Accounts

One of the best ways to catch up on retirement savings is by maximizing contributions to tax-advantaged retirement accounts. The IRS sets annual limits on how much you can contribute, but you still have time to contribute for the previous tax year until the tax filing deadline.

Traditional and Roth IRAs

• For the 2024 tax year, you can contribute up to $7,000 to an IRA ($8,000 if you’re 50 or older).

• The deadline to contribute for the 2024 tax year is April 15, 2025.

• Contributions to a Traditional IRA may be tax-deductible, reducing your taxable income for the year.

• While Roth IRA contributions are not deductible, they grow tax-free for retirement.

  
  

If your income is too high to contribute to a Roth IRA directly, consider a Backdoor Roth IRA, which allows you to contribute to a Traditional IRA and then convert it into a Roth IRA.

401(k) and 403(b) Plans

If you’re still working, check if your employer allows prior-year contributions before tax season ends.

• The contribution limit for 2024 is $23,000 (or $30,500 if you’re 50 or older).

• Some employers allow after-tax contributions, which can later be converted into a Roth IRA.

If you haven’t contributed the maximum, increasing your contributions in the last few months before tax season ends can significantly boost your retirement savings.

2. Take Advantage of Catch-Up Contributions

If you’re 50 or older, you’re eligible to make additional "catch-up" contributions to certain retirement accounts. This can be a game-changer if you’ve fallen behind.

401(k) and 403(b) Plans: You can contribute an extra $7,500 on top of the $23,000 annual limit, bringing the total to $30,500 for 2024.

Traditional and Roth IRAs: You can contribute an additional $1,000, raising the total contribution limit to $8,000.

If you haven’t maxed out your contributions for the previous tax year, consider making a lump-sum contribution before the deadline to take full advantage of these catch-up opportunities.

3. Use a Health Savings Account (HSA) for Retirement Savings

Many people overlook the benefits of a Health Savings Account (HSA) as a retirement savings tool. If you have a high-deductible health plan (HDHP), you can still contribute to an HSA for the previous year before tax season ends.

Why HSAs Are a Powerful Retirement Tool

• Contributions are tax-deductible (lowering your taxable income).

• Earnings grow tax-free.

• Withdrawals for qualified medical expenses are tax-free.

• After age 65, you can use HSA funds for non-medical expenses without penalties (though you’ll pay income tax, similar to a Traditional IRA).

  
  

For 2024, the HSA contribution limits are:

• $4,150 for individuals.

• $8,300 for families.

• $1,000 catch-up contribution for those 55 and older.

Making an HSA contribution before the tax deadline can help you save for future healthcare expenses while reducing your taxable income.

4. Take Advantage of the Saver’s Credit

The Retirement Savings Contributions Credit (Saver’s Credit) is a little-known tax credit that can help low- and moderate-income earners boost their retirement savings.

Who Qualifies?

Your adjusted gross income (AGI) must be below certain thresholds:

• $76,500 for married couples filing jointly.

• $57,375 for head of household.

• $38,250 for single filers.

You must contribute to a Traditional IRA, Roth IRA, 401(k), 403(b), or similar plan.

Depending on your income, the Saver’s Credit can be worth 10%, 20%, or 50% of your contributions, up to $2,000 ($4,000 for married couples).

If you qualify, contributing before the tax deadline can help you reduce your tax bill while increasing your retirement savings.

5. Consider a SEP IRA or Solo 401(k) if You’re Self-Employed

If you’re self-employed or a small business owner, you have additional options to catch up on retirement savings before tax season ends.

SEP IRA (Simplified Employee Pension IRA)

• Contributions are tax-deductible.

• The contribution limit is 25% of your net earnings, up to $69,000 for 2024.

• The deadline to contribute is your tax filing deadline, including extensions.

Solo 401(k) (for Self-Employed Individuals)

• You can contribute as both the employee (up to $23,000) and the employer (up to 25% of net earnings, total limit $69,000).

• Catch-up contributions of $7,500 are allowed if you’re 50 or older.

• Contributions lower your taxable income, reducing your tax liability.

If you have self-employment income, consider setting up and funding a SEP IRA or Solo 401(k) before the tax deadline to supercharge your retirement savings.

6. Make Smart Investment Choices

Maximizing contributions is just the first step—investing wisely ensures your money grows over time. If you have extra funds available before tax season ends, consider:

• Diversifying your portfolio with a mix of stocks, bonds, and alternative assets.

• Rebalancing your investments to align with your risk tolerance and retirement timeline.

• Considering low-cost index funds or ETFs for long-term growth.

7. Adjust Your Budget to Free Up More for Retirement

If you’re serious about catching up on retirement savings before tax season ends, consider making short-term sacrifices to free up extra cash.

• Cut discretionary expenses (dining out, subscriptions, unnecessary shopping).

• Use your tax refund to fund your IRA or HSA.

• Automate contributions so you consistently save for retirement.

Every extra dollar you contribute now will compound over time, significantly increasing your future retirement security.