Maximize 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. Individual Retirement Accounts (IRAs) and Health Savings Accounts (HSAs) are often-overlooked tools offering 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

For the 2024 tax year, you have until April 15, 2025, to make your contributions. If you're under 50, you can contribute up to $7,000, and if you're 50 or older, up to $8,000. Contributions not only bolster your retirement savings but also reduce your taxable income, offering potential tax deductions based on your income and filing status. Remember to verify your eligibility for a Roth IRA or traditional IRA so you can make the most informed decision.

Contribute to Your HSA

Health Savings Accounts come with exceptional triple tax benefits: tax-deductible contributions, tax-free withdrawals for medical expenses, and tax-free growth. Similar to IRAs, you have until April 15, 2025, for the 2024 tax year contributions. The 2024 limits are $4,150 for individual coverage and $8,300 for family coverage, with an additional $1,000 catch-up contribution for those 55 or older. An HSA can save for both short-term medical costs and long-term healthcare needs. Imagine the potential growth of HSA funds if not immediately spent.

Consulting with a financial advisor or tax professional can help determine your eligibility and contribution limits, but don't wait too long. Act before April 15, 2025, to take full advantage of these savings strategies. Double-check your account balances and make contributions today to avoid the last-minute rush.