As the tax deadline approaches, it’s a great moment to review your financial plans and make sure you’re taking full advantage of the benefits offered through IRAs and HSAs. These accounts provide valuable tax perks, but to apply your contributions to the 2025 tax year, everything must be completed before the federal filing deadline.

Below is a detailed look at what you should know as you prepare for April 15.

Why IRA Contributions Are Especially Important Right Now

Adding money to an IRA before the filing deadline can help you save more for retirement while also potentially reducing your tax bill. For 2025, the general contribution limit is $7,000 for anyone under age 50. Those aged 50 or older can add up to $8,000, thanks to the catch-up contribution option meant to support savers nearing retirement.

These limits apply to the total you contribute across all your IRAs, including both Traditional and Roth IRAs. You also can’t put in more than the amount you earned in income during the year. If you didn’t earn income but your spouse did, a spousal IRA may allow you to contribute based on their earnings.

How Income Impacts Traditional IRA Deductibility

You’re allowed to contribute to a Traditional IRA regardless of how much you earn. However, the deductible portion of your contribution depends on your income and whether you or your spouse is covered by a retirement plan at work.

If you’re single and participate in a workplace plan, you can deduct your full contribution if your income is $79,000 or less. For income between $79,001 and $88,999, part of the contribution is still deductible. At $89,000 or above, the deduction is fully phased out.

For married couples filing jointly in which both spouses have workplace retirement plans, the full deduction applies if your joint income is $126,000 or less. Partial deductions are available up to $145,999. Once your income reaches $146,000, no deduction is allowed.

Even without a deduction, Traditional IRA contributions allow your investments to grow tax-deferred until retirement withdrawals begin.

How Roth IRA Contribution Rules Differ

Roth IRAs operate under a different set of rules. Rather than offering tax-deductible contributions, Roth accounts grow tax-free and allow tax-free withdrawals in retirement. However, your income determines whether you can contribute.

Lower-income earners can contribute the full amount, while those in the midrange may qualify for a partial contribution. At higher income levels, contributions may not be allowed at all. Because these limits shift each year, it’s wise to verify where your income falls before sending in your contribution.

HSAs: A Tax-Efficient Tool for Medical Savings

If you’re covered by a high-deductible health plan (HDHP), you may qualify for a Health Savings Account. HSAs are designed to help you set aside money for medical expenses while enjoying unique tax advantages.

For the 2025 tax year, you can make contributions until April 15, 2026. Individuals with self-only coverage can contribute up to $4,300. Those with family coverage can add up to $8,550. Anyone aged 55 or older may put in an additional $1,000 for the year.

HSAs are notable because they offer three layers of tax benefits:

• Your contributions reduce your taxable income.
• Your savings grow free from taxes.
• Withdrawals for qualifying medical expenses are tax-free.

If your employer adds money to your HSA, those funds count toward your annual limit. If you were eligible for only part of the year, the amount you can contribute may need to be prorated unless you qualify for the “last-month rule,” which allows full-year contributions if you were eligible in December. However, losing eligibility the following year may lead to taxes and penalties.

Avoiding Excess Contributions

Putting more than the permitted amount into an IRA or HSA can cause issues. If excess funds remain in the account without being corrected, the IRS may charge a 6% penalty for each year the extra amount stays in place.

Review your contributions carefully—including any employer HSA deposits—to ensure you’re within the allowed limits. If you discover you’ve contributed too much, you can usually remove the extra amount before the tax deadline and avoid penalties.

Take Action Now to Optimize Your Tax Benefits

IRA and HSA accounts can play a major role in strengthening your retirement and healthcare savings while offering meaningful tax advantages. But to take advantage of these benefits for the 2025 tax year, you’ll need to finalize your contributions before April 15, 2026.

If you’re unsure how much you should contribute or which type of account best fits your needs, speaking with a financial professional can provide clarity. They can walk you through the rules, help you avoid common pitfalls, and ensure you’re making the most of the opportunities available to you.

There’s still time to contribute—don’t miss your chance to boost your savings and reduce your tax burden. If you’d like assistance reviewing your options, now is the perfect time to begin preparing for the deadline.