Contribute to IRAs & HSAs Before Tax Day

Tax Day is fast approaching, and it's time to take stock of opportunities to reduce your tax burden and grow your savings. Two often-overlooked tools — the Individual Retirement Account (IRA) and the Health Savings Account (HSA) — offer unique tax advantages that can significantly impact your financial health. Whether planning for retirement or managing healthcare costs, maximizing contributions to these accounts before April 15, 2025, is a step worth taking.

Maximize Your IRA Contributions

The deadline to maximize your IRA contributions for the 2024 tax year is April 15, 2025. For those under 50, the annual contribution limit is $7,000, while those 50 or older can contribute up to $8,000. These contributions can bolster your retirement savings while reducing taxable income. Depending on your income and filing status, you may also qualify for tax deductions.
When considering Roth versus traditional IRAs, verify your eligibility to make the most informed decision that aligns with your financial goals.【7:2†source】

Contribute to Your HSA

HSAs are powerful tools that provide triple tax benefits: contributions are tax-deductible, withdrawals for qualified medical expenses are tax-free, and the account grows tax-free over time. For the 2024 tax year, remember the April 15, 2025, deadline to make your contributions. The contribution limits are $4,150 for individual coverage and $8,300 for family coverage, with an additional $1,000 catch-up contribution for those 55 and older. An HSA can be used for both short-term medical costs and long-term healthcare needs, allowing funds to grow over time if not immediately spent.

Consulting with a financial advisor or tax professional can help determine your eligibility and optimize the contribution limits. With the April 15, 2025, deadline approaching, act now to take full advantage of these savings strategies. Double-check your account balances and consider making contributions today to avoid the last-minute rush.