Remind them that they can contribute to 2020 IRAs, Roth IRAs and HSAs until May 17!
Most employees understand that they can make a 2020 IRA contribution by May 17, 2021 and have it count as a deduction on their 2020 income tax return. But they may not know that the same rule applies to making contributions to their Health Savings Account (HSA). HSA contributions made by May 17 will also apply to their 2020 tax return.
For employees seeking tax-deferral on contributions and a 2020 tax deduction:
- Traditional IRA
- HSA
For employees seeking tax-free withdrawals in retirement:
- Roth IRA
TC120369(0421)1
