Make the Most of IRA and HSA Contributions Before Tax Day

Dec 10 2025 17:41

Tax Day is fast approaching, and now is the perfect time to take stock of opportunities to reduce your tax burden and strengthen your long-term savings. Two often-overlooked tools—the Individual Retirement Account (IRA) and the Health Savings Account (HSA)—offer meaningful tax advantages that can make a real difference in your financial health. Whether you are planning for retirement or managing healthcare expenses, maximizing your contributions before April 15, 2025, is a step worth taking.

Maximize Your IRA Contributions

For the 2024 tax year, you can make IRA contributions up until April 15, 2025. The annual limits are $7,000 for individuals under 50 and $8,000 for those aged 50 and older. These contributions can potentially lower your taxable income, depending on your filing status and income level.

Beyond immediate tax benefits, IRA contributions help build long-term retirement savings. Consider double-checking whether a traditional or Roth IRA aligns better with your financial situation, as eligibility and tax treatment vary.

Contribute to Your HSA

HSAs come with powerful tax advantages: contributions are tax-deductible, funds grow tax-free, and withdrawals for qualified medical expenses are tax-free as well. Like IRAs, you have until April 15, 2025, to make contributions for the 2024 tax year.

For 2024, contribution limits are $4,150 for individuals, $8,300 for families, and an additional $1,000 catch-up contribution for those 55 and older. An HSA can help you cover short-term medical costs, but it can also serve as a long-term savings tool—especially if you invest your balance and let it grow over time.

Taking full advantage of these accounts can provide meaningful tax savings and financial flexibility. Consider checking in with a financial advisor or tax professional to confirm eligibility and determine the ideal contribution strategy. With April 15, 2025, on the horizon, reviewing your balances and making contributions now can help you avoid a last-minute scramble and ensure you’re making the most of these valuable opportunities.