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Reminder - 2023 IRA & HSA Contribution Deadline Thumbnail

Reminder - 2023 IRA & HSA Contribution Deadline

As we approach the tax filing deadline, we want to remind you about making your 2023 IRA and Health Savings Account (HSA) contributions by April 15, 2024.  Please read below for eligibility requirements and contribution limits.

IRA Contributions 

You must have earned income (wages, business income, etc.) to be eligible to make an IRA contribution. If your earned income is less than the contribution limits above, then you can only contribute up to your earned income amount.

The annual contribution limits above can be split between a Traditional IRA and/or a Roth IRA or all to one account.  But the eligibility requirements are different. 

Am I eligible to make a deductible Traditional IRA contribution? 

Contributions to a Traditional IRA may be tax-deductible depending on your filing status and income.  

Click on “Can I Make A Deductible IRA Contribution” below for the income levels that allow a full or partial deduction. 

Can I Make A Deductible IRA Contribution

Am I eligible to make a Roth contribution? 

Remember, the annual IRA contribution limits can be split between a Traditional IRA and/or a Roth IRA or all to one account.  Click on “Can I Contribute To My Roth IRA” below for the eligibility requirements for Roth IRA contributions. 

 Can I Contribute To My Roth IRA

Whether you are making a Traditional IRA or Roth IRA contribution, be sure to specify your contribution as “2023” to ensure it is applied to the correct tax year. If mailing a check, we recommend writing “2023 IRA Contribution” in the memo line. 

Health Savings Account (HSA) Contributions 

The contribution limits include BOTH your contributions AND any employer contributions. If you contribute to your HSA via payroll deduction, you can make an additional cash contribution, but you need to ensure the total contributions from BOTH you and your employer do not exceed the contribution limits shown above. 

Am I eligible to make a HSA contribution? 

Generally, if are covered by a High-Deductible Health Plan (HDHP), you are eligible to contribute to an HSA. For 2023, a qualifying HDHP has the following characteristics: 

  1. Has an annual deductible of at least $1,500 for individual coverage or $3,000 for family coverage, and  
  2.  Limits annual out-of-pocket expenses (e.g., co-pays, deductibles) to $7,500 for individual coverage or $15,000 for family coverage.  

IMPORTANT NOTE FOR MEDICARE ENROLLEES:  You are not eligible to contribute to an HSA if you are enrolled in Medicare. If you enrolled in Medicare during 2023, you are eligible to make a partial contribution, pro-rated for the months that you were not enrolled in Medicare. Contact your tax preparer for help in determining the partial eligibility amount. 

IMPORTANT NOTE FOR MARRIED COUPLES:  A regular contribution can be made to either spouse’s HSA or divided in any way such that the total contributions do not exceed the Family limit.  The catch-up contribution, however, must be made to each spouse’s individual HSA. For example, a wife cannot contribute her $1,000 catch-up contribution to her husband’s HSA, she can only contribute the catch-up contribution to her own HSA.    

What are the tax benefits?  

Contributions to an HSA are tax deductible. Distributions from an HSA are tax-free when used to pay qualifying health expenses. Contact your tax professional for details on qualified distributions. 

Talk to Your Tax Professional 

Be sure to let your tax professional know if you make any last-minute IRA or HSA contributions, so they can be properly reported and deducted on your 2023 tax returns.