Stop Wasting Money on Tax Preparation: 5 Quick Retirement Contribution Hacks That Boost Your Refund Before April 15th

Time is running out, but you still have over three months to slash your 2025 tax bill. While most people scramble to find receipts and chase down forms, smart taxpayers are using retirement contributions to legally reduce their taxable income: and potentially boost their refunds significantly.

The deadline for making 2025 traditional IRA contributions is April 15th, 2026. That means you have until tax filing day to make moves that count toward last year's return. Here are five strategic retirement contribution moves that can put more money back in your pocket.

Hack #1: Max Out Your Traditional IRA Deduction Window

The traditional IRA remains one of the most powerful last-minute tax reduction tools available. For 2025, you can contribute up to $6,500 if you're under 50, or $7,500 if you're 50 or older. Every dollar you contribute to a traditional IRA potentially reduces your taxable income dollar-for-dollar: if you qualify.

Here's where it gets interesting: You don't need to be covered by an employer retirement plan to take advantage. If neither you nor your spouse has access to a workplace retirement plan, you can deduct the full traditional IRA contribution regardless of your income level.

The income thresholds for 2025 traditional IRA deductions:

• Single filers: Full deduction up to $73,000 in modified adjusted gross income (MAGI), phases out between $73,000-$83,000

• Married filing jointly (if covered by workplace plan): Full deduction up to $116,000 MAGI, phases out between $116,000-$136,000

• Married filing jointly (spouse covered by workplace plan): Deduction phases out between $218,000-$228,000 MAGI

Even if you're in the phase-out range, a partial deduction can still save you hundreds in taxes.

Hack #2: Leverage the "Still Working" Catch-Up Strategy

If you're 50 or older, you're sitting on tax gold. The catch-up contribution rules for 2025 allow an extra $1,000 in traditional IRA contributions, bringing your total to $7,500. But here's the kicker: you can make this contribution even if you're still working and covered by an employer plan, as long as you fall within the income limits.

Many people assume they can't contribute to an IRA if they have a 401(k). That's wrong. You can do both, and the traditional IRA contribution can still be partially or fully deductible depending on your income.

Pro tip: If your MAGI is right at the edge of the phase-out range, consider strategies to lower it, such as increasing your 401(k) contribution or making HSA contributions if eligible.

Hack #3: The Spousal IRA Backdoor Move

Here's a move that even some tax professionals miss: the spousal IRA strategy. If you're married and one spouse doesn't work or earns very little, the working spouse can contribute to both their own IRA and a separate IRA for the non-working spouse.

For 2025, this means a married couple can potentially contribute up to $13,000 ($6,500 each) or $15,000 if both spouses are 50 or older. Both contributions can be deductible if you meet the income requirements.

The beauty of this strategy is timing. Since you have until April 15th to make 2025 contributions, you can calculate exactly how much you need to contribute to optimize your tax situation. Run the numbers both ways: with and without the spousal contribution: to see the tax impact.

Hack #4: Strategic 401(k) Contribution Timing

While you can't go back and change your 2025 payroll deferrals, you can absolutely optimize your 2026 strategy starting right now. This might seem counterintuitive in an article about April 15th moves, but hear me out.

If you're getting a refund this year, consider immediately increasing your 2026 401(k) contribution to capture that money before you spend it. For 2026, the contribution limits increased to $23,500 for those under 50, and $31,000 for those 50 and older.

The psychological hack: Use your expected refund amount to calculate how much extra you can afford to contribute per paycheck. If you're getting a $3,000 refund, that's $115 extra per bi-weekly paycheck you can redirect to your 401(k). You won't miss money you're used to getting back anyway.

Hack #5: The HSA Triple Tax Advantage Play

If you have access to a Health Savings Account, this is perhaps the most powerful retirement savings tool available: and you still have time to contribute for 2025. HSAs offer a triple tax advantage: deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

For 2025, contribution limits were $3,650 for individual coverage and $7,300 for family coverage, with an additional $1,000 catch-up contribution if you're 55 or older.

Here's the retirement angle most people miss: After age 65, you can withdraw HSA funds for any reason (not just medical expenses) and pay only regular income tax: just like a traditional IRA. Before age 65, HSA withdrawals for qualified medical expenses are completely tax-free.

The strategy: Contribute the maximum to your HSA before April 15th, pay medical expenses out of pocket, and keep receipts. You can reimburse yourself tax-free from the HSA years or even decades later, while the account grows tax-free in the meantime.

Putting It All Together: Your Action Plan

The key to maximizing these strategies is understanding your specific tax situation. Here's your step-by-step approach:

1. Calculate your 2025 MAGI to determine which strategies apply to you

2. Estimate your tax liability both with and without additional retirement contributions

3. Prioritize contributions based on tax savings potential: HSA first (if eligible), then traditional IRA, then increased 2026 401(k) deferrals

4. Set up automatic contributions to ensure you don't miss the April 15th deadline

The Professional Edge

While these strategies can save you significant money, the tax code is complex and individual situations vary widely. What works for your neighbor might not work for you. Income limits, phase-outs, and contribution coordination require careful analysis.

The most costly mistake we see is people missing out on these opportunities entirely because they filed early without considering their options. The second most costly mistake is trying to navigate the rules alone and getting something wrong.

Don't Leave Money on the Table

You've got roughly 102 days left before the April 15th deadline. That's plenty of time to implement these strategies, but procrastination will cost you. Every day you wait is a day you're potentially missing out on tax savings that could amount to thousands of dollars.

The retirement contribution strategies outlined here aren't tricks or loopholes: they're legitimate tax planning tools designed by Congress to encourage retirement saving. But they only work if you use them.

Your next step is simple: calculate your potential savings, choose your strategy, and take action. Your future self (and your bank account) will thank you.

Ready to optimize your tax strategy? Contact Smith Taxes & More to ensure you're maximizing every available opportunity before the April 15th deadline.