Time is ticking. May 17, 2021 is the deadline for 2020 contributions to your Health Savings Account (HSA) or Individual Retirement Account (IRA).
3 Benefits to Making a 2020 Contribution Before You File Your Taxes.
1. If you pay taxes (as opposed to getting a refund), making a contribution to a Traditional IRA or an HSA could lower or eliminate your tax liability – eliminating the taxes you owe or even leading to a refund. Contributions must be made by May 17 and be coded as prior-year (2020) contributions.
2. You may qualify for a special Tax Savers Credit. Depending on your income and how much you contribute, you could receive a tax credit of 10%, 20%, or 50% of your contribution.
2. You may qualify for a special Tax Savers Credit. Depending on your income and how much you contribute, you could receive a tax credit of 10%, 20%, or 50% of your contribution.
3. Contributions are a great way to save a little extra for retirement or future medical expenses regardless of the tax-saving benefits.
Always consult with your tax advisor/preparer prior to making a contribution. They can verify if you are eligible to contribute to a Traditional IRA or HSA and determine the best options for your situation.
Learn more about IRA contributions limits by visiting the IRS website.
Learn more about HSA contribution limits by visit the IRS website.
Learn more about HSA contribution limits by visit the IRS website.