Boost Your Savings: 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 you're planning for retirement or managing healthcare costs, maximizing contributions to these accounts before April 15, 2025, is a step worth taking.

Contribute to Your HSA

Health Savings Accounts (HSAs) offer triple tax benefits: tax-deductible contributions, tax-free withdrawals for medical expenses, and tax-free growth. As a reminder, the deadline to contribute for the 2024 tax year is April 15, 2025. The 2024 contribution limits for an HSA are $4,150 for individual coverage and $8,300 for family coverage, with an additional $1,000 catch-up contribution for those aged 55 or older.

HSAs are incredibly versatile, allowing you to save for both short-term medical costs and long-term healthcare needs. An HSA fund that is left to grow over time, if not immediately spent, can accumulate significantly. Consider consulting with a financial advisor or tax professional to determine your eligibility and contribution limits.

Maximize Your IRA Contributions

For the 2024 tax year, you can contribute to your IRA until April 15, 2025. Annual contribution limits are set at $7,000 for those under 50 and $8,000 for those 50 and older. Depending on your income and filing status, these contributions could lead to potential tax deductions, reducing your taxable income while bolstering your retirement savings.

It's crucial to verify your eligibility for a Roth IRA or traditional IRA to make the most informed decision. Consider working closely with a financial advisor to optimize your strategy.

Acting before April 15, 2025, will allow you to fully leverage these savings strategies. Double-check your account balances and make contributions today to avoid the last-minute rush. These proactive steps can enhance your savings while reducing your tax liability, providing both immediate and future financial benefits.