Nathan Hawrot | Feb 02 2026 14:00

Maximize Your IRA and HSA Contributions Before Tax Day

Make the Most of Your IRA and HSA Before Tax Day

 

As tax season approaches, now is the perfect time to review your IRA, traditional and Roth, as well as your HSA contributions. These accounts offer meaningful tax advantages, but timing matters. To maximize benefits for the 2025 tax year, contributions need to be made before the federal deadline.

 

Here’s what you should know to make the most of these opportunities before April 15:

Why IRA Contributions Matter

 

Adding funds to an IRA before the deadline can help you grow your retirement savings and potentially reduce your tax bill. For 2025, the contribution limit is $7,000 if you’re under 50. If you’re 50 or older, you can contribute up to $8,000 to help catch up as retirement gets closer.

 

These limits apply across all IRAs combined, both Traditional and Roth. Your contributions also can’t exceed your earned income for the year. If you didn’t earn income but your spouse did, you may still qualify to contribute through a spousal IRA.

Traditional IRA Deduction Rules:

Anyone with earned income can contribute to a Traditional IRA, but whether you can deduct those contributions depends on your income and whether you or your spouse have a workplace retirement plan.

  • Single filers with a workplace plan:
    Full deduction if income is $79,000 or less.
    Partial deduction between $79,001 and $88,999.
    No deduction at $89,000 or higher.

  • Married filing jointly with both spouses covered:
    Full deduction up to $126,000.
    Partial deduction between $126,001 and $145,999.
    No deduction at $146,000 or higher.

Even if your contribution isn’t deductible, your money still grows tax-deferred until withdrawal, which all adds up over time.

Roth IRA Rules:

 

Roth IRA eligibility is based entirely on income. Lower-income earners can contribute the full amount, while higher earners may face reduced limits or be excluded altogether. These thresholds change annually, so confirm your eligibility before contributing.

HSAs: Smart for Health and Taxes

 

If you have a high-deductible health plan, you may qualify for a Health Savings Account (HSA). HSAs offer triple tax benefits:

  • Contributions reduce taxable income.
  • Growth is tax-free.
  • Withdrawals for qualified medical expenses aren’t taxed.

For 2025, you can contribute until April 15, 2026:

  • $4,300 for self-only coverage.
  • $8,550 for family coverage.
  • Plus, a $1,000 catch-up if you’re 55 or older.

Employer contributions count toward your limit. If you were eligible only part of the year, you may need to prorate contributions unless you qualify under the “last-month rule.”

Avoid Overcontributing

 

Exceeding IRS limits can lead to a 6% penalty for each year excess funds remain in the account. Track contributions carefully and remove any excess before the deadline to avoid penalties.

Take Action NOW!

 

IRA and HSA accounts are powerful tools for building long-term financial security and reducing taxes, but only if you act before April 15, 2026. If you’re unsure which account is best for you or how much to contribute, give us a call at 248-325-9947.  We would love to work with you and/or your other financial professionals to determine which types of accounts and/or contributions are needed. We can help you navigate the rules and make the most of every opportunity.

 

There’s still time to make meaningful contributions. Don’t let the deadline pass you by. If you’d like help reviewing your options, reach out today so you’re ready well before Tax Day.