Yes, but the refund must be deposited by the due date for filing your tax return (not counting extensions). In addition, IRS direct deposits of federal tax refunds won't indicate which year the IRA contribution is for. If you want all your refund deposited into your IRA, you don't use Form 8888, Allocation of Refund; you do it on your tax return.

• Ensure that your financial institution accepts deposits for the prior year to IRAs.
• As with all IRA deposits, the account owner is responsible for informing the IRA trustee of the year for which the deposit is intended, for ensuring that contributions don't exceed annual contribution limitations and that contributions are timely made.

If you fail to notify the IRA trustee of the intended year for the deposit, the IRA trustee can assume the deposit is for the current year (for example, a refund received in 2025 is deposited as a contribution for 2025 and not for 2024).

The IRS isn't responsible for the contribution amounts or timeliness related to an IRA direct deposit.

• An error on your return or an offset of your refund could change the amount of refund available for deposit which could reduce any IRA deduction and any retirement savings contributions credit you claimed for 2024 for that deposit, potentially further reducing the amount of refund available for deposit (for more information, see Are there conditions that could change the amount of my refund?).
• You must verify the deposit amount and that the deposit was actually made to the account on time — by the due date of the return (without regard to extensions).
• If the deposit into your account doesn't occur by the due date of the return (without regard to extensions), the deposit is a contribution for 2025 rather than 2024, and you must file an amended 2024 return to reduce any IRA deduction and any retirement savings contributions credit you claimed for 2024 for that deposit.

Additional information:
IRA FAQs