It’s Not Too Late

Encourage HSA and/or IRA contributions before April 15

As the April 15 tax deadline approaches, now is the time to remind employees who are eligible to be enrolled in a Health Savings Account (HSA) and/or an Individual Retirement Account (IRA) that it’s not too late to make contributions for the 2024 tax year.

HSA contributions

Employees with a High-Deductible Health Plan (HDHP) may be eligible to contribute to an HSA. The 2024 contribution limits were $4,150 for individuals and $8,300 for families, with an additional $1,000 in catch-up contribution for those 55 and older. HSA funds grow tax-free and can be used for qualified medical expenses, making them a powerful savings tool.

IRA contributions

Employees can also contribute to a traditional or Roth IRA. The 2024 contribution limit was $7,000, with an additional $1,000 in catch-up contribution for those 50 and older. Traditional IRA contributions may lower taxable income, while Roth IRAs allow for tax-free withdrawals in retirement. However, income limits apply to both traditional IRA deductions and Roth IRA eligibility.

Act now

Providing reminders through internal communications, emails, or HR bulletins before the April 15, 2025, deadline help employees reduce taxable income and build long-term savings

Smith can help you encourage employees to take advantage of these opportunities by making make informed financial decisions before time runs out. Employee communications is what we do.