As tax season draws near, it’s a great moment to revisit your financial game plan—especially when it comes to funding your IRA and HSA accounts. These accounts offer powerful tax advantages, but taking full advantage of them for the 2025 tax year requires making contributions before the federal filing deadline.

Below is a clear breakdown of what to know so you can make smart, timely choices before April 15.

Why IRA Contributions Matter as the Deadline Approaches

If you're aiming to strengthen your retirement savings while potentially lowering your tax bill, contributing to an IRA before tax day can be a highly effective strategy.

For the 2025 tax year, contribution limits are:

• $7,000 if you’re under age 50
• $8,000 if you’re age 50 or older (thanks to the catch-up contribution allowance)

These limits apply across all IRAs you hold—Traditional, Roth, or a combination of both. Additionally, you can’t contribute more than your total earned income for the year. However, if you didn’t earn income but your spouse did, you may still qualify to contribute through a spousal IRA based on their earnings.

How Your Income Impacts Traditional IRA Deductibility

While anyone with earned income can contribute to a Traditional IRA, whether those contributions are tax-deductible depends on your income and whether you or your spouse participates in an employer-sponsored retirement plan.

For example:

• If you're single and covered by a workplace plan: full deduction is available at $79,000 or less; partial deduction applies from $79,001 to $88,999; no deduction is allowed at $89,000 or more.
• If you're married filing jointly and both spouses have workplace plans: full deduction applies at $126,000 or less; partial deduction is available between $126,001 and $145,999; no deduction is allowed at $146,000 or higher.

Even when contributions aren’t deductible, the assets in your Traditional IRA still grow tax-deferred until you begin taking distributions in retirement.

Roth IRA Eligibility Depends on Income

Roth IRAs operate under a different set of rules. Instead of deductibility, your income determines whether you can contribute the full amount, a reduced amount, or nothing at all.

Because these income thresholds change each year, it’s wise to review the updated limits before adding funds to a Roth IRA. Contributing the wrong amount could lead to complications later.

HSAs: A Tax-Efficient Solution for Health Expenses

If you’re enrolled in a high-deductible health plan (HDHP), you may be eligible to use a Health Savings Account (HSA)—one of the most tax-advantaged tools available.

You have until April 15, 2026, to contribute for the 2025 tax year. The contribution limits are:

• $4,300 for individuals
• $8,550 for families
• Additional $1,000 catch-up contribution if you’re age 55 or older

HSAs stand out because they offer a triple tax advantage:

• Your contributions may reduce your taxable income.
• Earnings grow tax-free.
• Withdrawals for qualifying medical expenses are tax-free as well.

Keep in mind that employer contributions count toward your annual limit. Also be aware of the “last-month rule,” which lets you contribute the full annual amount if you're eligible on December 1—but you must stay eligible the entire following year to avoid taxes or penalties.

Avoiding Excess Contributions

Contributing more than the IRA or HSA limits can lead to trouble. If excess contributions remain in the account past the deadline, the IRS may impose a 6% penalty for each year the extra amount stays put.

To stay on track:

• Review the annual contribution limits for your accounts.
• Check how much you—and your employer, in the case of HSAs—have already contributed.
• If you’ve contributed too much, remove the excess before the tax deadline to avoid penalties.

Take Action Now to Strengthen Your Savings

Both IRAs and HSAs offer meaningful tax advantages that can enhance your long-term financial outlook—from boosting retirement savings to preparing for future healthcare expenses. But to apply contributions toward the 2025 tax year, you must act before April 15, 2026.

If you’re unsure which type of account is best for you or how much to contribute, a financial professional can help you sort through the rules, evaluate your tax situation, and make confident decisions. The right guidance can ensure you avoid common pitfalls and take full advantage of all available savings opportunities.

There’s still time to make meaningful progress before the deadline. If you’d like a personalized review of your options, reach out soon—we’re here to help you make smart, informed choices for your financial future.