If boosting your retirement savings is high on your list this year, you’re not alone, and you’re not too late. Catch-up contributions can be a powerful opportunity for individuals looking to close the gap between where they are and where they want to be. Whether you’ve had competing financial priorities, unexpected expenses, or simply a later start, there are smart, compliant ways to course-correct.
LaTour Asset Management of Springfield works with clients every day who want to make the most of their retirement years, without scrambling to figure it all out on their own. Let’s talk about how to catch up.
Understanding Catch-Up Contributions
The IRS allows individuals aged 50 or older by year-end to make additional contributions to retirement accounts. For IRAs, that means an extra $1,000 on top of the standard $7,000 limit in 2025. In 2026, that number increases to $1,100, giving you a total of $8,600 in potential annual contributions.
These “catch-up” provisions are designed to give you a little more runway—and for many in Springfield, it’s a much-needed one. They allow savers to compress more into the final decades before retirement, increasing tax-advantaged savings when it matters most. Keep these considerations in mind:
- You can contribute to both a Roth and Traditional IRA, but your combined total must stay within the limit.
- You have between January 1 until the federal tax deadline (typically April 15 of the following year) to make prior-year contributions.
- If you’re not sure which IRA type fits your tax picture, a professional can help walk you through the trade-offs.
How to Fund Your IRA Consistently
You don’t have to fund your IRA all at once. In fact, some of the most effective strategies are built on consistency:
- Automate it early in the year. Set up a recurring monthly deposit to get contributions rolling and to avoid scrambling next spring.
- Reallocate windfalls. Did you pay off a loan last year? Did you secure a raise or bonus? Redirecting that money into your IRA can turn short-term gains into long-term growth.
- Coordinate with other accounts. If you’re also contributing to a workplace plan like a 401(k), make sure you’re at least capturing the full employer match. Then, pivot your focus to the IRA.
- Consider a Spousal IRA. If one spouse doesn’t earn income, you may still be able to contribute to an IRA for them if you file jointly. This is a smart way to double your household’s retirement effort.
- Explore strategic Roth options. For high earners whose income exceeds Roth contribution limits, the “backdoor Roth IRA” approach may offer a workaround. It’s nuanced and must be done carefully. A knowledgeable tax advisor can help guide you.
Don’t Let Uncertainty Delay Your Plan—Call Us Today
If you’re in Springfield and feel like you’re behind, know this: you’re not starting from scratch. You’re starting from experience. And with the right guidance, you can build a strategy that uses every available lever, from catch-up contributions to tax optimization, to move you forward.
The LaTour Asset Management of Springfield team is ready to help you move with clarity and purpose. Call us today at (877) 888-5724 to get your IRA strategy on track, confidently and compliantly.
