By the time February rolls around, many New Year’s resolutions have lost their steam. But when it comes to high-impact financial moves, now is actually a prime time of year to make things happen.

Here’s why: Every tax season, the IRS lets taxpayers rewind the clock on certain types of tax-advantaged accounts, giving them until Tax Day — typically April 15 — to make contributions to Individual Retirement Accounts (IRAs) and Health Savings Accounts (HSAs) that will count for the prior year.

The extra time gives you another chance to take full advantage of the tax benefits (aka contribute as much as the IRS allows) and potentially lower your taxable income, and in turn, your tax bill.

But there’s even more to it than that: Having an extra 3.5 months (or practically speaking, until you file your tax return if you want to avoid amending it) gives you the chance to gauge your contributions after the year has ended, when you know how much you’ve earned and how much of your income is taxable. A complete financial picture — namely end-of-year tax forms — can help you be more strategic about making any additional adjustments.

“Once the calendar year is over you have a better idea of where you stand,” said Brian Walsh, Head of Financial Planning at SoFi. “And if your income and expenses fluctuate, that can be especially helpful in determining contributions.”

Pro tip: A well-timed contribution to a traditional Individual Retirement Account (IRA) or Health Savings Account (HSA) could potentially keep you eligible for specific tax credits or deductions that “phase out” when your annual taxable income is over certain thresholds. This includes this year’s new deductions for things like tip income and overtime pay.

So what?

Putting money in an IRA or HSA is a smart move in its own right. These accounts help you build financial security and a safety net that stays with you regardless of where you work, and the tax advantages can give you a major leg up on building wealth. But there may also be more immediate benefits if your taxable income is just above the threshold for a lower tax bracket — or the cutoff for certain tax breaks.

Here’re more on the accounts that are still open for 2025 contributions:

A traditional IRA: As with a 401(k), contributions are typically tax-deductible and have the chance to grow tax-deferred until you withdraw your money in retirement. For 2025, you can contribute up to $7,000 — $8,000 if you’re 50 or older — to one or more IRAs, though the tax deduction can be less than that (or disappear) if you or your spouse have a workplace retirement plan and earn over certain amounts.

A Roth IRA: Contributions are not tax-deductible, so they won’t lower your taxable income or tax burden. The tax advantage comes later — once you retire — when qualified withdrawals (including any investment gains) aren’t taxed. The same 2025 limit of $7,000 ($8,000 if 50+) applies to all IRAs, including Roths, though with a Roth, you can’t contribute as much (or anything at all) if you make over certain amounts.

An HSA: Contributions are tax-deductible, so they lower your taxable income, and if you use the money for eligible medical expenses, you won’t ever have to pay taxes on it. In other words, your contributions, any money you earn by investing it, and qualified withdrawals are tax-free. (And it can even be a stealth retirement savings tool.) The big caveat, though, is that these accounts are only available to people enrolled in a qualified high-deductible health insurance plan. For 2025, the contribution limits are $4,300 for individuals and $8,550 for families.

Related Reading

4 Million More Americans May Adopt This ‘Powerful Yet Underutilized’ Tool Next Year (CNBC)

IRA Ownership Reaches Record Highs (Investment Company Institute)

How to Reduce Taxable Income for High Earners (SoFi)

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