IRA contributions improve your retirement readiness, and if you use a traditional account, you can also earn a tax break. It's simplest to make your contributions during the tax year you intend them to count toward, but prior-year IRA contributions are possible. Below, we'll look at how to do them and why you might want to.

Prior-year IRA contributions enable you to save money in a tax-advantaged account without counting against the current year's contribution limits. In 2023, you could contribute $6,500 to an IRA if you were under 50 for the whole year or $7,500 if you were 50 or older by Dec. 31. These limits have risen to $7,000 and $8,000, respectively, for 2024.

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Source Fool.com