As tax season gets closer, it’s a great moment to review your financial plans—especially how you’re contributing to your IRAs and HSAs. These accounts come with valuable tax advantages, but to count toward the 2025 tax year, your contributions must be made before the federal filing deadline.

Below is a clear breakdown of what to keep in mind so you can make the most of these opportunities before April 15.

Why Contributing to an IRA Matters Right Now

Adding funds to your IRA ahead of the tax deadline can help you grow your retirement savings while potentially lowering your tax burden. It’s a simple step that can make a meaningful difference in your long-term financial picture.

For 2025, the maximum IRA contribution for anyone under 50 is $7,000. If you’re 50 or older, you’re eligible to contribute up to $8,000 through a catch‑up provision designed for those nearing retirement.

These limits apply across all of your IRAs combined—including Traditional and Roth IRAs. You also can’t contribute more than your earned income for the year. If you didn’t earn income but your spouse did, a spousal IRA may still allow you to contribute based on their earnings.

How Your Income Impacts Traditional IRA Deductions

You can put money into a Traditional IRA regardless of your income level, but your ability to deduct those contributions on your taxes varies based on whether you or your spouse has access to an employer-sponsored retirement plan.

If you’re single and covered by a workplace plan, you can deduct your full contribution if your income is $79,000 or below. A partial deduction applies if your income falls between $79,001 and $88,999. Once your income reaches $89,000, deductions aren't allowed.

For married couples where both spouses have workplace retirement plans, full deductions are available with joint income of $126,000 or less. Partial deductions apply between $126,001 and $145,999, and no deduction is available starting at $146,000.

Even without a deduction, your Traditional IRA can continue growing tax‑deferred until you withdraw the funds in retirement.

Different Income Rules for Roth IRAs

Roth IRAs work differently because your eligibility to contribute depends entirely on your income. Lower incomes qualify for full contributions, moderate incomes qualify for reduced contributions, and higher incomes may disqualify you from contributing at all.

Since these limits adjust annually, make sure to check where your income falls before you add to a Roth IRA.

HSAs: A Tax‑Smart Way to Save for Healthcare Costs

If you’re enrolled in a high‑deductible health plan (HDHP), you may be eligible for a Health Savings Account, or HSA. HSAs are unique because they allow you to set aside money for medical expenses while offering favorable tax treatment.

You can make HSA contributions for the 2025 tax year until April 15, 2026. The contribution limit for individual coverage is $4,300, while family coverage allows up to $8,550. If you’re 55 or older, you can contribute an additional $1,000 as a catch‑up amount.

HSAs come with a rare triple tax advantage:

• Your contributions can reduce your taxable income.
• Investment growth inside the account isn’t taxed.
• Withdrawals for qualified medical expenses are tax‑free.

Be aware that any employer contributions count toward your total annual limit. If you were eligible for only part of the year, your contribution limit may need to be reduced unless you qualify under the “last‑month rule.” But if you rely on this rule and lose HSA eligibility the following year, you could face taxes and a penalty.

Avoid Overcontributing

Exceeding the IRS contribution limits for IRAs or HSAs can create issues. Any excess you leave in the account may trigger a 6% penalty for each year it remains uncorrected.

To avoid this, keep track of both your contributions and any contributions made by your employer. If you discover you’ve gone over the limit, you can withdraw the extra amount before the tax deadline to avoid penalties.

Make Your Contributions While There’s Still Time

IRAs and HSAs offer powerful tax benefits that can help you build retirement savings and prepare for healthcare expenses. But to use these advantages for the 2025 tax year, you must make your contributions before April 15, 2026.

If you’re unsure how much to contribute or which type of account best fits your situation, speaking with a financial professional can give you clarity. They can walk you through the rules, help prevent costly mistakes, and ensure you’re making the most of the benefits available to you.

There’s still time to contribute—don’t miss the chance to strengthen your savings and potentially lower your tax bill. If you’d like help reviewing your options, now is the perfect moment to reach out so you’re fully prepared before the deadline arrives.