Maximize Your 2024 Tax Savings Before It’s Too Late

Tax season will be here before you know it, but there’s still time to make strategic moves that can reduce your 2024 tax bill while strengthening your financial future. Certain contributions and adjustments can be made until the 2025 tax filing deadline, helping you maximize deductions and tax-advantaged savings. Here are key actions to take before you file your 2024 tax return:

1. Maximize IRA Contributions

You can contribute to an Individual Retirement Account (IRA) until April 15, 2025, for the 2024 tax year. Contribution limits for 2024 are:

• $7,000 if you're under 50

• $8,000 if you're 50 or older (catch-up contribution)

If you qualify, contributions to a traditional IRA may be tax-deductible, reducing your taxable income. Alternatively, if you're eligible, you might consider contributing to a Roth IRA for tax-free growth in retirement.

2. Make Your 529 Plan Contributions

If you're saving for a child’s (or grandchild’s) education, 529 plan contributions are a great way to invest for the future. While the federal government doesn’t offer a tax deduction, some states provide state income tax deductions or credits for contributions. Even if you don’t receive an immediate tax benefit, these funds grow tax-free when used for qualified education expenses.

3. Boost Your HSA Contributions

If you have a Health Savings Account (HSA) paired with a high-deductible health plan (HDHP), you can still contribute to your 2024 HSA until April 15, 2025. The limits for 2024 are:

• $4,150 for individuals

• $8,300 for families

• $1,000 additional catch-up contribution for those 55 and older

HSA contributions are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses—making them one of the most powerful tax-advantaged accounts available.

4. Contribute to a SEP IRA or Solo 401(k) If You’re Self-Employed

For self-employed individuals or small business owners, contributing to a SEP IRA or Solo 401(k) is a great way to lower taxable income while saving for retirement.

• SEP IRA Contribution Limit (2024): Up to 25% of compensation, or $69,000, whichever is lower

• Solo 401(k) Contribution Limit (2024): Up to $69,000 ($76,500 if 50 or older)

Depending on your business structure, you may have until your tax filing deadline (including extensions) to make these contributions.

5. Verify Your Withholdings for the New Year

Tax season is also a great time to review your W-4 withholdings and estimated tax payments to ensure you're on track for 2025. Adjusting now can help you avoid surprises next tax season.

Taking advantage of these last-minute tax-saving opportunities can help you keep more of your money while setting yourself up for long-term financial success. If you're unsure about your eligibility for certain deductions or contributions, consider speaking with a financial or tax professional.