With Tax Day fast approaching, 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 planning for retirement or managing healthcare costs, maximizing your contributions to these accounts before April 15, 2025, is a step worth taking.

Maximize Your IRA Contributions

As the 2024 tax year deadline of April 15, 2025, looms, consider the annual contribution limits: $7,000 for those under 50 and $8,000 for those 50 and older. Depending on your income and filing status, these contributions may be tax-deductible, bolstering your retirement savings while reducing taxable income. To make an informed decision, verify your eligibility for a Roth or traditional IRA.

Contribute to Your HSA

The Health Savings Account (HSA) presents a trifecta of tax benefits: tax-deductible contributions, tax-free withdrawals for medical expenses, and tax-free growth. Remember, for the 2024 tax year, contributions must be made by April 15, 2025. The contribution limits are $4,150 for individual coverage, $8,300 for family coverage, and a $1,000 catch-up contribution for those 55 or older. HSAs are versatile, allowing funds to be saved for both short-term medical costs and long-term healthcare needs. Consider the benefit of HSA funds growing over time if not immediately spent.

Consult with a financial advisor or tax professional to determine eligibility and contribution limits. Act before April 15, 2025, to take full advantage of these savings strategies. Avoid the last-minute rush by double-checking account balances and making contributions today.