As tax season gets closer, it’s a great moment to revisit your financial plan—especially your IRA and HSA contributions. These accounts come with valuable tax advantages, but you must add funds before the federal filing deadline if you want them to count for the 2025 tax year.

Below is a refreshed look at what you need to know so you can take full advantage of these savings opportunities before April 15.

Why Contributing to an IRA Matters Right Now

If you're hoping to increase your retirement savings or possibly lower your taxable income, contributing to an IRA before tax day can make a meaningful difference. For the 2025 tax year, the maximum IRA contribution is $7,000 if you’re under 50. Those age 50 and above can contribute up to $8,000, allowing people nearing retirement to set aside more through catch-up contributions.

These limits apply across all IRAs you hold—whether Traditional, Roth, or both. You also can’t contribute more than your earned income for the year. But if you had no earnings and your spouse did, you may still qualify to make a contribution through a spousal IRA based on their income.

How Your Income Influences Traditional IRA Deductions

Anyone can contribute to a Traditional IRA, but the ability to deduct those contributions depends on your income and whether you or your spouse participates in an employer-sponsored retirement plan.

For example, single filers with a workplace retirement plan can deduct the full amount if their income is $79,000 or less. Partial deductions are available between $79,001 and $88,999. Once income reaches $89,000, deductions are no longer allowed.

For married couples filing jointly where both spouses have access to a retirement plan at work, the full deduction is available up to $126,000 of combined income. Deductions phase out between $126,001 and $145,999 and disappear at $146,000 and above.

Even if your contribution isn’t deductible, your investment can still grow tax-deferred until you withdraw the funds during retirement.

The Rules for Roth IRAs Work Differently

Roth IRAs base eligibility on income rather than workplace plan participation. If your income falls within the allowable range, you can contribute the full amount. Moderate income levels may limit your contribution, and high-income earners may be prohibited from contributing entirely.

Since these income thresholds shift from year to year, it’s wise to confirm your eligibility before making a Roth IRA contribution.

HSAs: A Tax-Savvy Way to Prepare for Medical Expenses

If you’re enrolled in a high-deductible health plan (HDHP), you may qualify for a Health Savings Account, or HSA. These accounts allow you to set aside money specifically for medical expenses while taking advantage of significant tax perks.

You have until April 15, 2026, to make HSA contributions for the 2025 tax year. Individuals with self-only coverage can contribute up to $4,300, while those with family coverage can save up to $8,550. Individuals 55 and older are eligible for an additional $1,000 catch-up contribution.

HSAs offer a rare triple tax benefit: contributions may reduce your taxable income, investment growth isn’t taxed, and withdrawals for qualified medical expenses are tax-free.

Keep in mind that employer contributions count toward your annual limit. If you were covered only part of the year, your allowable contribution may need to be prorated unless you qualify for the last-month rule. However, not meeting eligibility requirements the following year may trigger taxes and penalties.

Avoiding Excess Contributions

Exceeding IRA or HSA contribution limits can create complications. If extra funds stay in the account past the deadline, the IRS may impose a 6% penalty for every year the excess remains.

To prevent this, verify your contribution limits and keep track of how much you—and your employer, in the case of HSAs—have already added. If you’ve overshot the limit, you can withdraw the excess before the filing deadline to avoid penalties.

Take Action Now to Strengthen Your Savings

IRAs and HSAs offer powerful opportunities to save more for retirement and healthcare while unlocking tax advantages. But to apply contributions to the 2025 tax year, you’ll need to make them before April 15, 2026.

If you’re unsure about how much to contribute or which accounts best fit your goals, consulting a financial professional can be incredibly helpful. They can walk you through the rules, help you avoid mistakes, and ensure you’re making the most of available tax benefits.

There’s still time to contribute—don’t miss the chance to enhance your savings and lower your tax bill. If you’d like help reviewing your options, reach out soon so you’re fully prepared before the deadline.