Tax Day is 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 make a significant impact on your financial health. Whether you're 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

With the 2024 deadline of April 15, 2025, looming, it’s crucial to focus on maximizing your IRA contributions. The annual contribution limits stand at $7,000 for those under 50 and $8,000 for those 50 and older. Depending on your income and filing status, these contributions can offer potential tax deductions. Not only can they bolster your retirement savings, but they also reduce your taxable income. Before contributing, verify your eligibility for either a Roth IRA or traditional IRA to make the most informed decision.

Contribute to Your HSA

The Health Savings Account (HSA) presents a trio of tax benefits: tax-deductible contributions, tax-free withdrawals for qualified medical expenses, and tax-free growth. Don’t forget the April 15, 2025, deadline for the 2024 tax year. The 2024 contribution limits for an HSA are $4,150 for individual coverage, $8,300 for family coverage, and an additional catch-up contribution of $1,000 for those 55 or older. Utilizing an HSA can be beneficial for both short-term medical costs and long-term healthcare needs. To illustrate, if HSA funds aren’t immediately spent, they can continue to grow, enhancing your savings over time.

Maximizing contributions to both IRAs and HSAs is not just about capturing immediate tax savings; it's also about strategic financial planning for the future. Consulting with a financial advisor or tax professional can help determine your specific eligibility and contribution limits. Be sure to act before April 15, 2025, and take full advantage of these savings strategies. By double-checking account balances and making contributions today, you can avoid the last-minute rush.