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. 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.

Maximize Your IRA Contributions

The 2024 deadline of April 15, 2025, is your chance to enhance your retirement savings. For those under 50, the annual contribution limit is $7,000, while for those 50 and older, it's $8,000. These contributions not only bolster your retirement savings but also reduce your taxable income. Depending on your income and filing status, you may be eligible for potential tax deductions. Make sure to verify your eligibility for a Roth IRA or traditional IRA to make the most informed decision.

Contribute to Your HSA

HSAs offer a triple tax advantage: tax-deductible contributions, tax-free withdrawals for medical expenses, and tax-free growth. The contribution limits for the 2024 tax year are $4,150 for individual coverage and $8,300 for family coverage, with an additional catch-up contribution of $1,000 for those 55 or older. Not only can an HSA save for short-term medical expenses, but it can also grow over time for long-term healthcare needs. Imagine your HSA funds growing over the years if not immediately spent. Take advantage of this opportunity to boost your financial wellness.

Consult with a financial advisor or tax professional to determine your eligibility and contribution limits to these accounts. To make the most of these savings strategies, act before April 15, 2025. Double-check your account balances and make contributions today to avoid a last-minute rush. With these steps, you're set to enhance your financial health and save smartly.