2021 Is Almost Over, But You Still Have More Time to Max Out Your Retirement Accounts

@titovailona via Twenty20

The new year is rapidly approaching, but you still have time to max out your Roth IRA contributions.

The popular retirement accounts, which many experts agree are the right choice for young investors, have a $6,000 annual contribution limit for investors under 50 years of age. However, the deadline for 2021 contributions isn't until a few months into 2022.

"You have all the way up until the tax deadline," Laurie Allen, a certified financial planner at LA Wealth Management tells CNBC Make It. "And if it doesn't get delayed like it has been in previous years, that's going to be April 15."

With a Roth IRA, you invest money that's already been taxed. When you withdraw it in retirement, you get the gains tax-free, assuming you follow the withdrawal requirements. That's why, if you haven't already, you should be sure to max out your contributions or invest as much as you can afford to.

"The sooner your dollars are in, the sooner you're getting the rewards of investing" thanks to compounding, says Charles Sachs, chief investment officer at Kaufman Rossin Wealth. "Compound interest is a gift that you really don't want to miss out on."

Both Allen and Sachs recommend spreading your investments over the year so that you don't find yourself making one big investment before the deadline.

"We encourage our clients to make contributions throughout the whole year so they can hit the market on different places," Allen says.

She adds that this strategy is especially useful in reducing stress around the end of the year.

"You're more likely to hit the max [contribution]," she says. "You don't want to stress about it right around the holidays when you're trying to buy Christmas presents, pay taxes or anything like that."

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