It’s all too easy to let the hectic holiday season or year-end deadlines slip by without maximizing your tax-saving opportunities. But don’t worry—if you missed a few key moves before December 31st, you still have time to catch up and potentially trim your 2024 tax bill. Below are five powerful last-minute tax saving strategies you can put into action before you file your 2024 return.
Contribute to an IRA or Roth IRA To Maximize Last Minute Tax-Advantaged Saving Strategy
Why It Matters
Traditional IRA contributions can lower your taxable income for the 2024 tax year, while Roth IRA contributions won’t reduce your current taxes but offer the benefit of tax-free growth for the future. Both types of contributions for the 2024 tax year can generally be made until April 15, 2025.
What to Know
Traditional IRA - Contributions are often tax-deductible (subject to income limits and whether you have an employer-sponsored retirement plan).
Roth IRA: Contributions provide no immediate tax break, but qualified withdrawals in retirement are tax-free.
Pro Tip:
Even if you haven’t yet set up an IRA, you can still open one before the filing deadline and make a contribution for the prior year—just double-check the rules and contribution limits based on your age and income level.
Contribute to a Solo 401(k), SEP IRA, or Employer 401(k): Last Minute Taxable-Income Reduction Strategy
Why It Matters
If you’re self-employed or a small business owner, making employer contributions (profit sharing) to a Solo 401(k) or SEP IRA can significantly reduce your taxable income. If your business offer 401(k) to employees, there's still time to make profit-sharing contributions as well.
Key Deadlines
Without Extension
Sole Proprietors: April 15, 2025
S-Corporations/Partnerships: March 15, 2025
With Extension
Sole Proprietors: October 15, 2025
S-Corporations/Partnerships: September 15, 2025
Pro Tip:
Work with a tax professional to ensure you’re accurately calculating and timing your contributions. The rules can be tricky, and you want to avoid missing deadlines or misclassifying your contributions.
Fund Your Health Savings Account (HSA): Last Minute Tax Deduction Strategy
Why It Matters
An HSA is one of the most powerful tax-advantaged accounts out there. If you have a high-deductible health plan (HDHP), contributions to an HSA can be made with pre-tax dollars, reducing your taxable income last-minute. In addition, any earnings grow tax-free, and withdrawals for qualified medical expenses remain tax-free.
Key Deadline
For the 2024 tax year, you can contribute to an HSA up until April 15, 2025—but no further extensions are allowed.
Pro Tip:
Unlike IRAs or 401(k)s, HSA contributions don't go with tax filing extensions - the deadline is firm on April 15, 2025. Mark your calendar to avoid missing out on this valuable deduction.
Make 529 Plan Contributions: Last Minute State Tax Savings Strategy
Why It Matters
A 529 plan is a tax-advantaged way to save for qualified education expenses (K-12 tuition, college, etc.). While you may already know about year-end contributions, some states allow you to contribute after December 31st and still claim the deduction (if offered) on your 2024 state income tax return.
Which States?
Currently, Georgia, Indiana, Iowa, Mississippi, Oklahoma, South Carolina, and Wisconsin all offer this flexibility. If you reside in one of these states, you may still be able to reduce your 2024 state tax bill with a timely 529 contribution.
Pro Tip:
Check your specific state’s rules and contribution deadlines, as each has different limits and requirements. It’s also wise to confirm whether your 529 plan contributions are fully deductible or only partially deductible at the state level.
5. Your Next Steps (TL;DR)
Even if December 31st has come and gone, you might still have time to reduce your 2024 taxes before filing. Here’s a quick recap:
IRA or Roth IRA: Contribute until April 15, 2025.
Solo 401(k), SEP, or Employer 401(k): Key deadlines vary by entity type; extensions may apply.
HSA: Contribute by the April 15, 2025 filing deadline—no extensions!
529 Plan: In select states, contributions made after 12/31 can still apply to 2024 taxes.
Take Action Now
Confirm your eligibility and contribution limits.
Note the specific deadlines that apply to your tax situation or business structure.
Consider reaching out to a tax professional or financial advisor to ensure you make the most of these last-minute opportunities.
Final Thoughts
Tax laws can be complex, and timelines often vary based on your personal circumstances. Still, you don’t have to write off those missed year-end moves just yet. By acting swiftly—before April 15, 2025, or your extended filing deadline—you can potentially give your 2024 tax bill a final haircut and set yourself up for future financial success.
Disclosure:
All written content on this site is for informational purposes only.Opinions expresses herein are solely those of Savor Financial, a Core Planning brand.All information and ideas should be discussed in detail with your individual advisor prior to implementation. Investment advisory services are offered through Core Planning, LLC.The presence of this website on the internet shall in no direct or indirect way be construed or interpreted as a solicitation to sell or offer to sell investment advisory services.The information contained here is general in nature and is not intended as legal, tax, or investment advice. Further, the information contained herein may not be applicable to, or suitable for, the individuals’ specific circumstances or needs and may require consideration of other matters.CP does not provide legal advice or drafting services. Estate planning is considered incidental within the context of a financial plan. We will coordinate with your family attorney of choice. CP is not a certified public accountant and does not provide tax filing services. Tax related advising is considered incidental within the context of a financial plan. We will coordinate with your CPA of choice.
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