How to Finish 2025 in 2026

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Theme / Retirement Planning

In 1989, Cher’s song “If I Could Turn Back Time” was one of the year’s most popular songs. The lyrics spoke of regret and a wish to undo past mistakes. As we start 2026, we may look back on 2025 with longing eyes, asking to go back and change decisions that we made, actions that we took, or even words that we spoke. Perhaps some of the past mistakes can be undone in the new year, but likely not all.

The good news is that financially in 2026 we can still overcome our shortcomings from 2025. Roth IRAs have annual contribution limits, but once the opportunity passes there is no going back. In 2025, most individuals under 50 years could contribute up to $7,000 to a Roth IRA, while those 50 years old or over could contribute $8,000. But not all of us did, perhaps because we didn’t know or we weren’t diligent with our finances.

Unlike Cher’s wishful longing for the past, we can correct history – at least from a Roth IRA perspective. We have until April 15, 2026, which is Tax Day, to contribute to our Roths for 2025.Once Tax Day is past, the opportunity closes.

The news gets even better. When we have had a Roth IRA for at least 5 years and reach 59 ½ years old, we can make withdrawals from our Roth IRA tax-free. As it reads in Ecclesiastes 7:8, “Better is the end of a thing than its beginning.” Let’s not miss the opportunity to turn back the clock on Roth IRA contributions. Your future self with thank you, with no regrets.

Doug Hanson, MBA

Wealth Advisor

208.697.3699

doug@christianwm.com