Tax Day is fast approaching — it's time to take stock of opportunities to reduce your tax burden and grow your savings. Two often-overlooked tools— the Individual Retirement Account (IRA) and the Health Savings Account (HSA) — offer unique tax advantages that can significantly impact your financial health. Whether you're planning for retirement or managing healthcare costs, maximizing your contributions before the deadline of April 15, 2025, is a step worth taking.

Maximize Your IRA Contributions

The deadline to contribute for the 2024 tax year is April 15, 2025. You can contribute up to $7,000 if you're under 50, or $8,000 if you're 50 or older, which can bolster your retirement savings while reducing taxable income. Depending on your income and filing status, these contributions may be tax-deductible. As a tip, verify your eligibility for a Traditional or Roth IRA to make the most informed decision.

Contribute to Your HSA

With the April 15, 2025, deadline for the 2024 tax year, consider the triple tax benefits of an HSA: tax-deductible contributions, tax-free withdrawals for medical expenses, and tax-free growth. The 2024 contribution limits are $4,150 for individual coverage and $8,300 for family coverage. Plus, if you're 55 or older, you can make a catch-up contribution of $1,000. This makes an HSA a smart tool for both short-term medical costs and long-term healthcare needs.

Health Savings Accounts can grow over time if not immediately spent. Consider consulting a financial advisor or tax professional to determine eligibility and contribution limits. Remember to act before April 15, 2025, to take full advantage of these savings strategies. It's also wise to double-check account balances and make contributions today to avoid the last-minute rush.