Tax Day Planning: IRA and 529 Contributions

April 15, 2025, marks an important deadline—tax returns are due. It’s also your last chance to contribute to your IRA for the 2024 tax year. What does this mean for you? It’s an opportunity to strengthen your financial future with a move that could offer significant benefits.

For 2024, the standard contribution limit is $7,000, or $8,000 if you’re over 50 years old. These limits let you maximize the potential tax advantages of an IRA, whether it’s a traditional IRA with its upfront tax deductions or a Roth IRA with its tax-free growth in retirement.

If you made IRA contributions for 2024, remember to inform your CPA when filing your taxes. This small step can help you fully utilize the tax benefits available to you.

Missouri 529 Tax Deduction

Have you started a 529 plan for your child’s higher education costs? If you contributed to a 529 college savings plan in 2024, this is another key detail to share with your CPA. Missouri and many other states offer a state tax deduction for 529 contributions, giving you a unique chance to reduce your tax burden while saving for your child’s education expenses.

529 plans are flexible tools for education funding that grow tax-free and can be used to cover many qualifying expenses. Even modest contributions can grow into substantial savings and provide a financial nest egg for your child’s future.

Looking Ahead: New Gifting Limits for 2025

Here’s some news to keep in mind as you plan ahead: starting in 2025, the annual gifting limit increases to $19,000 per individual without triggering the gift tax. This means you can gift more to family, friends, or loved ones while staying within the annual gift tax exclusion.

Discuss with your CPA if your gift spending aligns with the criteria for gift tax exclusions. Have questions or need guidance? Send us a message.

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