Last-Minute IRA & HSA Contributions Before the Deadline

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It's Thursday, and this is the One of a Kind Financial Show Daily with your host, Mike Milligan. Tax season isn't just about filing paperwork. It's about strategy. In, uh, this episode from the One of a Kind Financial Show, Gary and I talked about, uh, why March matters more than most people realize and how the choices you make now can shape your financial future. See, tax season isn't over. It's just getting— but the clock is ticking, folks. Time to, time to take charge and see what can still be done about 2025 and begin the planning for 2026. Enjoy this segment next.

I'm Jerry Norland. As we roll into March, a lot of people thinking about one thing. Yep, taxes. The deadline is coming. The paperwork is stacking up. For some people, the stress is rising. But here's the question: is tax season just about filing or is it about something bigger? So, Mike, here we are in March. People know that April 15th is right out there. So why are we saying tax season isn't over, but the clock is ticking?

Because, Gary, most people treat tax season like a paperwork exercise. They gather documents, submit them, maybe get a refund or write a check, and that's it. But what they're missing is that March is one of the last opportunities to make strategic moves that could impact last year's tax picture and more importantly, set up a smarter strategy for this year. This isn't about avoiding taxes. It's about understanding how your overall financial plan interacts with taxes.

All right, so let's break it down. What can people still do in March, Mike?

Well, first, there's retirement contributions. For many individuals, contributions to traditional IRAs or certain retirement accounts can still be made until the tax filing deadline for the prior year. They could potentially reduce taxable income depending on eligibility and income limits. One thing that a lot of retirees miss, Gary, is that they think because maybe they're in their 70s that they can't make contributions. And that most of them are right, unless they have like a part-time gig, like Uber driver, volleyball referee, they have some form of earned income. And if you earn $4,000 or $5,000 of earned income, you could still make a Roth IRA or a traditional IRA contribution. Okay? So don't forget about those, even if that was last year. Second, there's health savings accounts. So if someone qualifies, They can also make prior contributions before the deadline. And third, it's a great time in March to review withholdings. If you owed more than expected or received a very large refund, that tells you something about your tax strategy. It tells you, one, that you could potentially have a penalty if you owe more than expected. But if you have a larger refund, than expected, it means you just gave the IRS and the government a tax-free loan.

Yeah.

So these decisions, whether it's retirement, health savings, or analyzing how much you pay or how much you get back, these depend on your individual circumstances. That's why we have more of these educational conversations. And this is not personalized advice. We hold the personalized advice until you actually come into the office and meet with us.

Yeah, that's something interesting there. A large refund tells you something. Most people think that's good news, but it's really not good news, is it, Mike?

Well, it feels good because it's like a bonus and everybody loves a bonus check. But a refund is essentially the government returning money that you overpaid during the year. Now, for some people, that's a forced savings plan that works well psychologically. But from a planning standpoint, you want your money working efficiently throughout the year and not sitting idly. It's where planning really matters the most.

Yeah. So let's talk about what most people miss.

They miss the forward-looking conversations. Most people think taxes are just historical. Taxes are predictable. If you've built your nest egg, for instance, in tax-deferred accounts like 401s or traditional IRAs, those withdrawals in retirement may be taxed as ordinary income according to the IRS. Distributions from tax-deferred retirement accounts are generally subject to federal income taxes at ordinary rates. So March shouldn't just be about last year's return. It should be about asking, what does my tax picture look like 5 years from now? Am I diversified across taxable, tax-deferred, and tax-free accounts? And how will required minimum distributions affect me later in life?

The show is the One of a Kind Financial Show with Mike Milligan. I'm Gary Nolan, your host. Want to give you the phone number, get on the calendar, get you all set up with that comprehensive plan. There's no cost. There's no obligation. Here's that phone number: 800-748-1838. 800-748-1838. Or text the word ideas to 600-700. One more time: 800-748-1838. Or text the word ideas to 600-700. Yeah, we're talking about taxes. It's right around the corner. So you're saying that real tax planning conversation isn't April 14th. It's much before that, right, Mike?

Yeah.

Yeah. True tax planning happens before December 31st, not after, but March is still a checkpoint. And here's what I tell people, as opposed to saying, what do I owe? Ask, what is my strategy? So when you're looking at your taxes right now, the general consensus is you're trying to reconcile. Like, do I have to pay or do I get something back? But the real knowledge comes in, or real tax strategy comes in, when you actually do the planning.

Let's talk about procrastination, because most of the time people put it off, don't they, Mike?

Procrastination has a cost. Delaying IRA contributions, delaying strategy conversations, delaying income projections, Every year you delay thoughtful tax planning is a year you lose flexibility. Now, again, we're not going to predict on this show future tax rates. We're not going to make guarantees about taxes. We're just here to help clients build adaptable strategies.

Couple of minutes left. What would you say to someone who's listening, feels— they feel overwhelmed, Mike? It's a lot.

It is. So start simple. Review last year's return. Understand where your income came from. Look at how much went to taxes. Ask whether your current savings strategy aligns with your future goals. And if you don't understand something on your return, that's not a weakness. That's an opportunity to ask questions.

And that's where the planning comes in, Mike. Am I right?

Exactly. At One Oak Financial, we focus on building comprehensive financial plans. We call those the one-of-a-kind financial plans. Taxes are one piece of that, but they're not the only piece. Now, taxes are the biggest expense you're ever going to have in your life. But we know that tax efficiency without retirement clarity doesn't solve the bigger picture.

Yeah, so March isn't panic month. It's like more like strategy month. Am I right?

That's exactly right.

All right. I wish we had more time. That was a good segment. All right, Mike, up against the clock. Final thoughts? Tell us about the one-of-a-kind financial plan.

Taxes are the biggest part, guys. And right now, deep in the heart of March, coming up to tax filing deadline, coming around that corner, there's still opportunities for you to take a pit stop and pay the IRS less. And if you haven't had that conversation with a financial professional like us at One Oak Financial, it's time to have that conversation. And then it's time to have the bigger conversation. Like not only about 2026 taxes, but what about the rest of your life and for your beneficiaries? We'll build a one-of-a-kind financial plan that addresses taxes. We'll also address retirement income, investment risk, long-term care, and your legacy. And when we put that all together, we'll do so, we'll build a plan with clarity that's simple so that you will have the peace of mind, void of fear and anxiety, so that you can go live a one-of-a-kind life.

All right, folks, advice like this shows you how important it is to meet with a financial coach, to meet with Mike and the team. They understand the ins and outs of the financial world. Take advantage of this opportunity right now. Get on the phone, 800-748-1838, 800-748-1838, or text the word ideas to 600-700. Do it right now while you're thinking about it. Mike and the team at One Oak Financial standing by, ready for your phone call this weekend. One more time before we take our next break. 800-748-1838 or text the word ideas to 600-700.

This has been the One of a Kind Financial Show Daily with your host, Mike Milligan. Gary and I are here for education purposes only. Please do not take anything we say solely as financial recommendations for you personally because every situation is different. If, if you need specific financial advice, please reach out to us at Ideas by Mike, doing business as One Oak Financial. I am a registered investment advisor, investment advisor representative with Advisory Alpha LLC. Advisory LLC and Ideas by Mike doing business as One Oak Financial are separate and unrelated entities. Please consult with tax professionals before implementing tax strategies. And we look forward to seeing you again on the One of a Kind Financial Show Daily.

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