As tax season draws closer, it’s a great opportunity to review your financial plan—especially when it comes to funding your IRAs and HSAs. These accounts offer meaningful tax benefits, but to apply those advantages to the 2025 tax year, you’ll need to make your contributions before the federal filing deadline.

Below is a breakdown of what to keep in mind so you can take full advantage of these savings opportunities before April 15.

Why IRA Contributions Matter as the Deadline Approaches

If your goal is to boost retirement savings while potentially lowering your tax liability, contributing to an IRA ahead of the tax filing deadline can be a strategic move. The annual limits can help guide your planning, and understanding those numbers will allow you to maximize tax benefits.

For 2025, individuals under age 50 may contribute up to $7,000 to an IRA. Those aged 50 or older are eligible for a higher contribution limit of $8,000, providing extra room to save as retirement nears. These limits apply across all IRAs you may hold—whether you have a Traditional IRA, Roth IRA, or a combination. Just remember that you cannot contribute more than the income you earned during the year.

If you did not earn income in 2025 but your spouse did, you may still be eligible to contribute through a spousal IRA. This option allows some households to continue saving consistently even if one spouse does not work.

How Income Impacts Traditional IRA Deductions

Although anyone with earned income can make a contribution to a Traditional IRA, whether you can deduct those contributions depends on your household income and whether you or your spouse participates in an employer-sponsored retirement plan.

For example, if you file as a single taxpayer and are covered by a retirement plan through work, you can deduct your full Traditional IRA contribution if your income is $79,000 or less. Partial deductions are available if your income falls between $79,001 and $88,999. Once your income reaches $89,000 or above, the deduction is phased out completely.

Married couples filing jointly face slightly different thresholds. If both spouses participate in workplace retirement plans, you may fully deduct your contribution if your combined income is $126,000 or less. You’ll only be eligible for a partial deduction if your income sits between $126,001 and $145,999. At $146,000 or higher, the deduction is no longer available.

Even in situations where your Traditional IRA contribution is not deductible, your investments can still grow tax-deferred—meaning you won’t owe taxes on earnings until you take withdrawals in retirement.

How Roth IRA Contribution Rules Differ

Roth IRAs follow a different set of rules. Instead of affecting deductibility, your income determines whether you can contribute at all. If your income is below the eligibility threshold, you may contribute the full amount. If your income is in the phase-out range, your allowable contribution will be reduced. Once your income exceeds the upper limit, you cannot contribute directly to a Roth IRA.

Because these contribution limits can shift from year to year, reviewing the current thresholds before adding funds is a smart step.

HSAs: A Triple-Tax-Advantaged Way to Prepare for Healthcare Expenses

If you’re enrolled in a high-deductible health plan (HDHP), you may qualify to open a Health Savings Account, or HSA. This type of account offers several tax advantages and can be an efficient tool for managing healthcare costs.

You can continue making contributions to your HSA for the 2025 tax year up until April 15, 2026. For individuals with self-only HDHP coverage, the contribution maximum is $4,300. Those with family coverage can contribute up to $8,550. Additionally, if you’re 55 or older, you are allowed to make a $1,000 catch-up contribution.

One of the most appealing features of an HSA is its triple-tax benefit:

• Contributions may reduce your taxable income.
• Your invested funds can grow without being taxed.
• Withdrawals for qualified medical expenses are tax-free.

Keep in mind that employer contributions count toward your annual limit, so be sure to factor that in. If you were only eligible for part of the year, you may need to prorate your contribution unless you qualify under the “last-month rule.” This provision allows you to contribute the full annual amount as long as you were eligible on December 1. However, if you do not remain eligible the entire following year, you may owe taxes and a penalty.

Be Careful Not to Exceed Contribution Limits

Going over IRS contribution limits for either IRAs or HSAs can result in costly penalties. If excess contributions are left in your account, the IRS generally charges a 6% penalty for each year the extra amount remains.

To avoid this mistake, take time to verify your contribution totals—including amounts added by your employer. If you discover that you’ve exceeded the limit, you typically have until the tax deadline to remove the extra funds and avoid penalties.

Take Action Now to Maximize Your Savings

IRAs and HSAs can offer significant financial benefits—helping you save more for retirement, reduce your tax burden, and prepare for future healthcare needs. But to make these contributions count for the 2025 tax year, you’ll need to take action before April 15, 2026.

If you’re uncertain about contribution strategies or need help choosing the right account, a financial professional can walk you through the options. Their guidance can help you avoid mistakes, understand the rules, and make the best decisions for your financial situation.

There is still time to make meaningful contributions. Don’t miss the opportunity to strengthen your savings and reduce your tax bill. If you’d like help reviewing your options, reach out soon so you’re fully prepared before the deadline.