Want an after the fact tax deduction you can take for 2022 in 2023? Contribute to your IRA or HSA! Here are some things to keep in mind:
IRAs
Deadline: The deadline to contribute to a traditional or Roth IRA for 2022 is the original due date of your personal tax return in 2023. The actual due date is Tuesday April 18th, 2023. While the due date is typically April 15th, since April 15th 2023 falls on a Saturday, and Monday the 17th is Emancipation Day (a holiday), so the deadline becomes the following day.
Extensions: If you extend your personal tax returns this does NOT extend the date by which the IRA contributions need to be made. The IRA contribution due date still remains 4/18/2023.
Max Contribution: The maximum that can be contributed to a traditional IRA is $6,000 for 2022 ($7,000 for those age 50 and over). The same is true for a Roth IRA.
Health Savings Accounts (HSA)
Deadline: The same dates above apply to Health Savings Accounts (HSA's)
Extensions: If you extend your personal income tax return this does not get you additional time to contribute to your HSA for the prior year. For 2022 tax year you still need to have all of your HSA contributions made by 4/18/2023.
How to Contribute: Regardless if you typically contribute to your HSA through an employer payroll deduction, or make contributions on your own directly to the HSA, you can make any 2022 contributions directly
Max Contribution: If you have a health savings account for 2022 you can contribute up to $3,650 if you have individual health coverage, and up to $7,300 if you have family coverage.
Catch-up Contribution: If an individual is age 55 they can contribute an additional $1,000 to their HSA as a "catch up" limit.
Have additional questions about these topics? You can email Nels Larsen Nels@GuidanceAccounting.com