The IRA is one of the most underutilized tools in your financial arsenal. It allows you to protect your hard-earned money and choose exactly how—and when—you want to handle your tax liability.

Important Reminder: You have until April 15, 2026, to make your contributions for the 2025 tax year. Whether you are looking for an immediate tax break or long-term tax-free wealth, now is the time to act.

1. 2025 IRA Breakdown: The Facts

Feature	Traditional IRA (The Deferral)	Roth IRA (The Growth Play)	Strategic Breakdown
2025 Contribution	$7,000 ($8,000 if 50+)	$7,000 ($8,000 if 50+)	You have until 4/15/26 to fund this.
Max Income (For Deferral)	$79k (Single) / $123k (Joint)	N/A (No upfront deferral)	Above these limits, you lose the Traditional tax break.
Max Income (To Contribute)	None	$150k (Single) / $236k (Joint)	If you’re over this, you must use the “Backdoor” strategy.
Principal Access	Restricted	The 5-Year Rule	Roth: Withdraw contributions tax-free after 5 years.
RMDs	Mandatory at Age 73	None	No forced sales. Your money grows until you decide.

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2. Traditional IRA: Protecting Money Today

For earners who fall within the 2025 limits ($79k single / $123k joint), the Traditional IRA is a massive opportunity to save money right now. Because you are in a relatively high tax bracket, deducting that $7,000 contribution can save you over $1,500 on your 2025 tax bill.

If your goal is to reduce your taxable income and keep more cash in your pocket today, this is a path worth considering.

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3. Why the Roth is My Personal Preference

While the Traditional IRA is great for an immediate win, my preference is the Roth. I choose the Roth for two main reasons:

1. The Compound Power: I would much rather pay taxes on the “seed” today than pay taxes on the “harvest” later. When that $7,000 grows into $27,000 or more over 20 years, I want every penny of that growth to be mine, not the IRS’s.
2. The 5-Year Rule & Flexibility: I prefer the Roth over a standard taxable brokerage account. In a brokerage account, you pay taxes on your gains every year. In a Roth, you don’t. Plus, under the 5-year rule, I have the flexibility to withdraw my original contributions if the absolute worst-case scenario happens.

I don’t want to touch that money—because that kills the growth potential—but having that capital accessible as a last-resort safety net makes it a better option for me than a Traditional IRA or a brokerage account.

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4. The “Backdoor” Strategy for High Earners

If you are over the income limits for both the Traditional deferral and the Roth contribution ($150k single / $236k joint), you aren’t out of luck.

• The Problem: You earn too much to get a tax break on a Traditional IRA, and you earn too much to contribute directly to a Roth.
• The Solution: You make a non-deductible contribution to a Traditional IRA. Then, you immediately convert those funds into a Roth IRA.
• The Result: This “Backdoor” allows high earners to bypass income limits and get their money into a tax-free growth environment.

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5. My Strategy

I keep it simple:

• Step 1: Maximize the employer 401(k) match. That’s an instant return you can’t pass up.
• Step 2: Instead of putting extra disposable income into a taxable brokerage account, I pivot to the Backdoor Roth. This allows me to build tax-free wealth while maintaining the security of knowing my principal is there if I ever truly need it.

What’s your move before April 15th?

Most people see tax season as a time to just “pay up” or hope for a small refund. I see it as a deadline to buy my future freedom. Whether you’ve got $50 or $7,000, every dollar you put into an IRA is a dollar the IRS can’t touch later.

I’d love to hear from you in the comments below:

Are you a “Seed” person (Roth) who wants tax-free growth, or a “Today” person (Traditional) who needs the tax break right now?

What’s the biggest thing that’s stopped you from starting an IRA in the past?

I read every comment. No question is too basic— we’re all just learning the rules of a game we weren’t originally invited to play.