It’s not too late for 2012 contributions

There’s still time to potentially lower your tax bill for 2012 by contributing to a traditional IRA, a SEP-IRA if you’re self-employed, or a Health Savings Account (HSA). Provided you qualify, you can make your tax-deductible contribution to these accounts right up until the filing deadline, April 15. Don’t forget to specify that your contribution is for the 2012 tax year.

The 2012 contribution limits are:

  • IRA — $5,000 if you’re under age 50, $6,000 if you were 50 or older by December 31, 2012.
  • SEP-IRA — The lesser of 20% of your 2012 compensation if you are self-employed, 25% for other employees, or $50,000.
  • HSA — $3,100 for individuals, $6,250 for families ($1,000 catch-up contribution if you were 55 or older by December 31, 2012).

You also can contribute to a 2012 Roth IRA up to the filing deadline, but keep in mind that you won’t get a tax deduction. The benefit of a Roth IRA comes when you can withdraw the money tax free in retirement, provided certain conditions are met.