Make the Most of IRA and HSA Contributions Before Tax Day

Tax Day is fast approaching, which makes now the perfect time to take stock of opportunities to reduce your tax burden and strengthen your long-term savings. Two often-overlooked tools—the Individual Retirement Account (IRA) and the Health Savings Account (HSA)—offer meaningful tax advantages that can improve your financial well-being. Whether you're preparing for retirement or managing ongoing healthcare costs, maximizing your contributions before April 15, 2026, is a smart move.

To help you prepare, here’s a clear guide to maximizing contributions for both HSAs and IRAs.

Contribute to Your HSA

HSAs offer a unique set of triple tax benefits: contributions are tax-deductible, withdrawals for qualified medical expenses are tax-free, and funds grow tax-free over time. For the 2025 tax year, you have until April 15, 2026, to make contributions.

Here are the limits for 2025:

• Individual coverage: $4,300
• Family coverage: $8,550
• Catch-up contribution for those 55 or older: $1,000

HSAs can help with both immediate medical expenses and long-term healthcare planning. For example, if you contribute consistently and leave the funds invested, your balance can grow significantly over the years—potentially becoming an additional source of retirement healthcare funding.

Before you contribute, consider speaking with a financial advisor or tax professional to confirm your eligibility and ensure you're maximizing available benefits.

Maximize Your IRA Contributions

IRA contributions for the 2025 tax year can also be made until April 15, 2026. The annual limits are $7,000 for those under 50 and $8,000 for individuals aged 50 or older.

Your IRA contributions may qualify for tax deductions depending on your income and filing status. These deductions can effectively reduce your taxable income while helping you build a stronger retirement foundation. It’s also wise to verify whether a traditional or Roth IRA is the better option for your financial situation and long-term goals.

Now is a great time to review your accounts, check your remaining contribution room, and plan ahead. Acting before the deadline helps ensure you take full advantage of these tax-efficient savings opportunities without the pressure of last-minute decisions.