How to do it:

IRAs:

The more familiar way to shift money out of this year’s taxable income and into some future year’s taxable income are traditional IRA contributions. Like HSAs, you can contribute through April 15th, but you can’t access the money without a penalty until you’re nearly 60, except in limited circumstances. If you can afford to lock money up for retirement, or if you’re nearing retirement, this is another way to shift your taxable income from this year, to a future year. While the general idea is that your tax rate will be lower after retirement, this also conveniently shifts your tax payment from this government to some future government. We can work to make sure they’re spending it on better things.

HSAs:

Health savings accounts (HSA) accrue, and after age 65 can be used as retirement funds. Contributions reduce your annual income, and expenditures are untaxed for qualified medical purposes. After age 65 expenditures for non-medical use carry no penalty—just your current tax rate. Not everyone can contribute to an HSA, but if you can it’s a win-win! Eligibility ends when you enroll in Medicare, and not all insurance qualifies for HSA participation.

FSAs:

More people are eligible to contribute to Flexible Spending Accounts, but the funds you contribute may need to be used by year-end. It’s still worth estimating your annual medical costs and contributing a conservative sum to cover them. If you do get caught-out at year end there are many eligible over-the-counter expenditures you can make.

There are a few other options for self-employed people. This 2025 article outlines the options above, plus some less common options. Please note that annual contribution caps will differ, and check with your accountant or tax preparer for 2025 details.