Financial Tip of the Month: Potentially Reduce Your Tax Liability
Want to Potentially Reduce Your Tax Liability for Last Year?
Make sure to speak with your accountant or tax professional BEFORE you file your taxes, as you have until you file your taxes to contribute for the prior year!
I have a lot of people ask me how they save for retirement if their employers don’t offer a retirement plan. Well, there are multiple ways to do this, however, most people don’t realize that If you're not covered by a retirement plan at work, you can deduct the entire amount of your IRA contribution (up to $5,500 annually, or $6,500 if you're 50 or older) on your income tax return. If you are covered by a retirement plan, your income will dictate whether or not your contribution is deductible.
By contributing to a Traditional IRA you can potentially reduce your tax liability for the year. This is extremely advantageous when you are in-between tax brackets, because by contributing to a traditional IRA it may put you in the lower bracket!
Please talk with your accountant or tax professional, they can help you determine if contributing money to a traditional IRA will help you in your current tax year. Then give me a call and I can help you determine what investments inside the IRA will work best for you!
Securities and advisory services offered through Sagepoint Financial Inc., member FINRA/SPIC. Insurance services offered through Frey Financial Incorporated, which is not affiliated with Sagepoint Financial.