Makin' Money

Tax Tip: More tax-deferred savings

Chris Farrell Apr 8, 2011

Tax Tip No. 2: Fund Other Tax-Sheltered Accounts: You can put money into your Health Savings Account (HSA). HSA contributions are tax deductible up to $3,050 for individuals and up to $6,150 for families.

The Coverdell Education Savings Account is better known by its older name, the Education IRA. You can put up to $2,000 into your Coverdell for 2010 by April 18.

You don’t get a deduction on the contribution, but the money is tax-sheltered and withdrawals are tax-free so long as it goes to qualified education expenses.

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