Make the Most of Your IRA and HSA Contributions Before Tax Day

As tax season approaches, it’s worth pausing—not just to prepare paperwork, but to revisit your financial goals with fresh eyes. Before the year officially closes, there’s still an opportunity to be proactive, reduce your tax bill, and strengthen your long-term financial foundation.

Two of the most powerful (and often underutilized) tools available are Individual Retirement Accounts (IRAs) and Health Savings Accounts (HSAs). Contributions made by the federal filing deadline—April 15, 2026—can still count toward the 2025 tax year, making now an ideal time to review your strategy and decide where your dollars can work hardest for you.

 

Why IRAs Matter as Tax Day Approaches

IRAs remain one of the simplest ways to build retirement savings while potentially lowering your taxable income. If you’re looking for a meaningful financial move before the filing deadline, contributing to an IRA is often a strong place to start.

For the 2025 tax year, individuals under age 50 may contribute up to $7,000 across all IRAs. Those 50 and older can contribute up to $8,000, thanks to catch-up provisions designed to help those nearing retirement accelerate their savings.

These limits apply in total, whether you have a Traditional IRA, a Roth IRA, or a combination of both. Contributions also can’t exceed your earned income for the year. However, if you didn’t earn income but your spouse did, a spousal IRA may allow you to contribute based on their earnings.

 

Traditional IRA Deductions: Income Matters

Anyone can contribute to a Traditional IRA, but whether those contributions are tax-deductible depends on your income and your access to a workplace retirement plan.

If you’re single and covered by an employer-sponsored plan, you can deduct the full contribution if your income is $79,000 or less. Partial deductions apply between $79,001 and $88,999, and deductions are phased out entirely at $89,000 and above.

For married couples filing jointly where both spouses participate in workplace retirement plans, full deductions are available with combined income of $126,000 or less. Partial deductions apply up to $145,999, and deductions are no longer allowed at $146,000 or more. Even when deductions aren’t available, Traditional IRAs still offer value through tax-deferred growth, which can make a meaningful difference over time.

Roth IRAs: Eligibility Is Income-Based

Roth IRAs play by a different set of rules. Your ability to contribute is determined entirely by your income.

If your income falls below the annual threshold, you can contribute the full amount. If you’re within the phase-out range, you may be eligible for a reduced contribution. Once your income exceeds the upper limit, direct Roth contributions are no longer permitted for that year.

Because income thresholds adjust annually, it’s important to confirm your eligibility before contributing—and to revisit this each year as your income changes.

 

HSAs: Where Tax Strategy Meets Healthcare

If you’re enrolled in a high-deductible health plan (HDHP), a Health Savings Account can be one of the most tax-efficient tools available. Contributions for the 2025 tax year can also be made through April 15, 2026.

For 2025, the contribution limits are:

  • $4,300 for self-only coverage
  • $8,550 for family coverage
  • An additional $1,000 catch-up contribution if you’re age 55 or older

HSAs are unique because they offer a rare triple tax advantage:

  • Contributions may reduce your taxable income
  • Funds grow tax-free
  • Withdrawals for qualified medical expenses are tax-free

It’s important to note that employer contributions count toward your annual limit. If you were HSA-eligible for only part of the year, your contribution limit may need to be prorated—unless you qualify for the last-month rule, which allows full-year contributions if you were eligible in December. That said, failing to remain eligible the following year could trigger taxes and penalties.

 

Be Mindful of Contribution Limits

Exceeding IRS contribution limits for IRAs or HSAs can create unnecessary headaches. Excess contributions left in an account may be subject to a 6% penalty each year until corrected.

To avoid this, review how much you—and your employer, if applicable—have already contributed. If you discover an overage, removing the excess before the tax deadline can help you avoid penalties altogether.

 

A Small Window, A Meaningful Opportunity

IRAs and HSAs offer more than just tax savings, they’re tools for building stability, flexibility, and peace of mind. But to count toward the 2025 tax year, contributions must be made by April 15, 2026.

Whether your goal is reducing taxable income, preparing for retirement, or setting aside funds for future healthcare needs, these accounts can play a powerful role in your overall financial picture.

If you’re unsure how much to contribute or which account best aligns with your goals, working with a financial professional can provide clarity and confidence. A thoughtful review now can help you avoid missteps and make the most of the benefits still available to you.

There’s still time, but the window is closing. A little intention today can go a long way toward a more secure financial future tomorrow.

 

Until next time,

Chandler