You have until the tax filing deadline to contribute to many tax-deferred accounts for the prior calendar year. Read more about contributions you can make to a SEP-IRA, IRA, ROTH, HSA and Edvest accounts.
In general, receive a tax deduction in the current year and pay tax when money is distributed from the account.
Whether or not the contribution can be deducted depends on whether or not you are covered by an employer retirement plan AND your income level.
* 2022 contribution limit is larger of earned income or $6,000 if under age 50. Catch-up contribution of $1,000 is allowed if over 50.
No tax deduction is received for the contribution. Instead, monies are distributed tax-free after certain timelines are met.
Eligibility is impacted by your modified Adjusted Gross Income.
The simplified Employee Pension IRA is available to self-employed individuals who report business income on schedule C of Form 1040. Contributions for the tax year can be made until the tax filing deadline, including extensions. The 2022 contribution is limited to $61,000 ($66,000 for 2023) or 25% of net business income. The contribution is an above-line deduction to arrive at adjusted gross income for both federal and state tax purposes.
Health Savings Account (HSA)
For 2022, the maximum contribution limit for an HSA is $3,650 ($3,850 for 2023) for single insurance coverage and $7,300 ($7,750 for 2023) for family insurance coverage. Taxpayers over age 55 can contribute an additional $1,000. Please note that each taxpayer must contribute the $1,000 catch-up to his/her own HSA. So, if one spouse carries the insurance and funds an HSA, the maximum contribution through payroll for an over-55 person is $8,300 for 2022 ($8,750 for 2023). The other spouse will need to contribute $1,000 to an HSA in his/her name separately.
Contact your employer and/or HSA custodian if you are interested in making contributions. Contributions for the tax year can be made until the tax filing deadline.
Coverdell Education Savings Account
For the 2022 tax year, you cannot contribute to an ESA if you make more than $110,000 (single) or $220,000 (married filing jointly). The maximum annual contribution is $2,000 per child. Contributions for the tax year can be made until the tax filing deadline. Contributions are not tax deductible on the federal and Wisconsin returns.
Edvest (Wisconsin 529 College Savings Plan)
For the 2022 tax year, the maximum tax deduction is $3,560 per year ($3,860 for tax year 2023), per beneficiary ($1,780 for married filing separate status and divorced parents of a beneficiary). Contributions greater than the maximum deduction amount may be carried as a deduction in future year. Contributions for the tax year can be made until the tax filing deadline.