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Well I already failed at my first goal for 2025, to max out my Roth IRA by January 1st. Making payments early to maximize benefits (the amount of time in the trade, in this case) is called frontloading. Alas a failure does not overshadow the wins. I am using a new Roth IRA early contribution strategy. In 2024 (last year) I made a deposit of $3,500 into a high yield savings account, which has a current interest rate of 3.9%. By the way, that’s the lowest I have seen the interest rate fall since opening the account in 2023. By January 1st my IRA was 50% funded. Now I am getting creative to reach the maximum 2025 contribution of $7,000. Last year it was fully funded by March 2024.
The photo above is laundry change from a recent trip to LA plus some loose change from the bottoms of bags and from my car. I use a debit card for most shopping so loosevchange sits around a long time! Work has not picked up for 2025 yet. I'm getting creative. This forgotten change was a $21 deposit into my Roth IRA.
Unused money + a money goal = WINNING
The IRS makes some new roles for Roth and traditional IRA’s every year. For 2025, the areas below have no change:
If your Roth or traditional IRA is not fully funded from 2024, you have an April 15, 2025 deadline for 2024’s contributions https://www.irs.gov/retirement-plans/ira-year-end-reminders
The 2024 max Roth and traditional IRA contribution limit is $7,000 or $8,000 if you are 50 years old or older. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
The Roth and Traditional IRA contribution limit in 2025 is $7,000 or $8,000 if you are 50 years old or older. https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000
There are some Roth and traditional IRA changes for 2025, which you can read about here: https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000
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