If you haven’t filed your 2025 tax return yet, here’s the good news: you still have time to make moves that could lower what you owe or boost your refund before the April 15 deadline. Many people assume that once the calendar year ends, their tax bill is locked in. That’s not entirely true — several retirement and savings accounts allow contributions for the prior tax year right up until the filing deadline. That means decisions you make this week could still meaningfully reduce your 2025 taxes.
Let’s walk through the moves worth considering, who they apply to, and how much they could save you.
Fund a Traditional IRA
One of the most straightforward options available to most people is contributing to a Traditional IRA for the 2025 tax year. You have until April 15, 2026 to make that contribution. The limit is $7,000, or $8,000 if you are age 50 or older.
Depending on your income and whether you have a retirement plan through your employer, some or all of that contribution may be tax-deductible, directly reducing the income you’re taxed on. For example, someone in the 22% tax bracket who contributes the full $7,000 could reduce their tax bill by roughly $1,540, assuming the full amount is deductible. You’re also setting yourself up for a more secure retirement at the same time — it’s one of the rare financial moves that helps you today and years from now.
A quick note on deductibility: if you (or your spouse) are covered by a workplace retirement plan, the deduction may be limited or phased out at higher income levels. If you’re unsure whether your contribution will be deductible, it’s worth checking with a tax professional before assuming the full benefit applies.
Don’t Forget the Spousal IRA
If one spouse works and the other doesn’t, the working spouse can fund an IRA in the non-working spouse’s name — a so-called Spousal IRA. The same contribution limits apply: $7,000, or $8,000 for those 50 and older.
That means a married couple could potentially contribute up to $16,000 combined before April 15, doubling the tax benefit. The couple must file jointly to qualify, and the same deductibility rules apply based on household income. This is one of the most overlooked tax-saving strategies we see, simply because many people don’t realize a non-working spouse can have a retirement account funded on their behalf at all.
Don’t Overlook Your HSA
If you were covered by a high-deductible health plan in 2025, you may also be able to contribute to a Health Savings Account for last year, again with an April 15 deadline. The contribution limits are $4,300 for individuals and $8,550 for families, with an additional $1,000 catch-up allowed if you’re 55 or older.
HSAs are one of the most tax-efficient accounts available, often described as offering a “triple tax benefit”:
- Contributions are fully deductible, regardless of whether you itemize
- Growth inside the account is tax-free
- Withdrawals used for eligible healthcare expenses are completely tax-free
For retirees, the benefits are especially worth knowing: if you are 65 or older, you can use your HSA to pay Medicare premiums tax-free. And while withdrawals for non-qualified expenses before age 65 carry both taxes and a penalty, once you turn 65 that penalty goes away — you’ll simply pay ordinary income tax on the withdrawal, much like a Traditional IRA. That makes a well-funded HSA a remarkably flexible retirement asset, not just a healthcare account.
Self-Employed? A SEP-IRA Could Save You Thousands
If you are self-employed, you may consider a SEP-IRA, which has much higher contribution limits than a Traditional IRA — for 2025, the limit is 25% of an employee’s total compensation, up to $70,000. For someone who had a strong income year, this can translate into a substantial deduction.
Here’s what makes the SEP-IRA especially useful for last-minute planning:
- You can open a brand-new SEP-IRA now and still fund it before you file
- If you request a filing extension, your deadline to contribute stretches all the way to October 15, 2026
- Contributions are based on a percentage of compensation, so the better your income year, the larger your potential deduction
If you had a solid income year and haven’t explored this option, please speak with your accountant or financial planner right away. This is often the single largest tax-saving opportunity available to self-employed individuals and small business owners.
Consider Filing for an Extension
Filing Form 4868 by April 15 gives you six additional months to file your return, moving your deadline to October 15, 2026. It’s important to understand what an extension does and doesn’t do:
- It extends the time you have to file your paperwork
- It does NOT extend the deadline to pay any taxes you owe
If you expect a balance due, you’ll still need to estimate and pay that amount by April 15 to avoid penalties and interest. That said, an extension can give you valuable extra time to gather documentation, explore retirement plan options like a SEP-IRA, or work through a more complex return without rushing or panicking. For many self-employed individuals and small business owners, the extra months can make the difference between a rushed estimate and a well-planned tax strategy.
Putting It All Together
If you’re looking at these options and aren’t sure where to start, here’s a simple way to think about it:
- Employed with access to a workplace plan? Check whether a Traditional IRA contribution would still be deductible at your income level
- Married with one income? Don’t overlook the Spousal IRA — it’s one of the most underused strategies
- Had a high-deductible health plan in 2025? Confirm your HSA is fully funded before the deadline
- Self-employed or own a small business? A SEP-IRA deserves a serious look, especially after a strong income year
- Need more time to figure it all out? An extension buys you breathing room, as long as you pay any estimated balance due by April 15
Frequently Asked Questions
Can I still contribute to an IRA for 2025 after the year has ended? Yes. The IRS allows IRA contributions for a given tax year up until the tax filing deadline of the following year, which is April 15, 2026 for the 2025 tax year.
What is a Spousal IRA and who qualifies? A Spousal IRA allows a working spouse to contribute to an IRA on behalf of a non-working or lower-earning spouse. The couple must file a joint tax return to qualify, and the same contribution limits and deductibility rules apply as with a regular IRA.
Can I contribute to an HSA for last year if I no longer have a high-deductible health plan? You can contribute for 2025 as long as you were covered by a qualifying high-deductible health plan at some point during that tax year, even if your coverage has since changed. The contribution deadline follows the same April 15 timeline as IRAs.
How much can a self-employed person contribute to a SEP-IRA? For 2025, contributions can be up to 25% of compensation, capped at $70,000. The exact amount depends on your net self-employment income and the specific calculation method used.
Does filing a tax extension delay how much I owe? No. A filing extension only gives you more time to submit your paperwork — it does not extend the deadline to pay taxes owed. Any estimated balance due must still be paid by April 15 to avoid penalties and interest.
Is a Traditional IRA contribution always tax-deductible? Not always. Deductibility depends on your income and whether you or your spouse have access to a workplace retirement plan. At higher income levels, the deduction may be reduced or eliminated, so it’s worth checking with a tax professional.
What happens to HSA funds if I don’t use them for medical expenses? Before age 65, non-qualified withdrawals are subject to both income tax and a penalty. After age 65, the penalty no longer applies, and non-qualified withdrawals are simply taxed as ordinary income, similar to a Traditional IRA.
The Bottom Line
A few smart moves made before April 15 can put real money back in your pocket and help build a stronger financial future. Whether it’s funding a Traditional IRA, taking advantage of a Spousal IRA, maximizing your HSA, or exploring a SEP-IRA if you’re self-employed, the key is acting before the deadline closes these doors for good. Talk to a financial professional or tax advisor this week while there’s still time to act — a short conversation now could meaningfully change what you owe.
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