Smart Tip!Maximize Your 2023 HSA & IRA Contributions
This is a season of important deadlines, and we have another one for you to consider: April 15 is also the deadline for all 2023 HSA & IRA contributions. At Brannen CPA Services, we want our clients to rediscover the strength in their numbers and we know that it always feels good when you can save your money in smart ways. Maximizing your HSA & IRA contributions is one great option to save money tax-free. In this article we provide an overview of the contribution limits.
HSAs
HSA, or Health Savings Accounts, let you save money and pay for certain healthcare costs, tax-free. The more you can contribute to your HSA, the more you are able to potentially benefit from the triple tax advantage they can offer. The HSA triple tax advantage is because contributions are not taxed, funds grow tax-free, and when funds are used to pay for qualified expenses they aren’t taxed. Each year the IRS sets a limit for the maximum amount you can contribute to the account. For 2023 the limit is:
$3,850 for individuals
Individuals over the age of 55 can contribute an additional $1,000
Families can contribute up to $7,750
IRAs
It’s common knowledge that IRAs are a great way to save for retirement, especially if you have an employer who matches your contributions. To contribute to an IRA, you (and/or your spouse if you file a joint return) must have taxable compensation, such as wages, salaries, commissions, tips, bonuses, or net income from self-employment. The 2023 limit for traditional IRAs and Roth IRAs is:
$6,500
Individuals over the age of 50 can contribute an additional $1,000
If you are able to maximize your HSA & IRA, consider making your contributions by April 15, 2024 to meet the 2023 deadline. If you have questions about whether this is a good option for you, please give us a call at 207.271.9600 today. At Brannen CPA Services, we are dedicated to providing each and every client with the attention they deserve and the highest level of professional service. Let us help you thrive!