Summary
A last-minute contribution to a traditional individual retirement account (IRA) can help taxpayers reduce their 2025 federal tax bill before the April 15 filing deadline. Contributions to a traditional IRA can be deducted from taxable income, potentially lowering a filer’s tax bracket or increasing a refund. For example, someone in the 22% tax bracket who contributes the $7,000 limit could save about $1,540 in taxes. However, eligibility for the full deduction depends on income levels and whether the taxpayer or their spouse has a workplace retirement plan. Roth IRA contributions do not provide immediate tax deductions because they are made with after-tax dollars.
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