March 28, 2011
Looking for a Way to Cut Your Tax Bill?
It’s not too late to save on your 2010 taxes while boosting your retirement savings; the trick is contributing to your IRA now.
Tax day is right around the corner, but there’s still time to save on last year’s taxes while also boosting your retirement savings. If you open or contribute to a traditional Individual Retirement Account, or IRA, by April 15 of this year, you can claim a deduction on last year’s taxes for the contribution amount, even though you’re paying it this year.
You can contribute up to $5,000 a year to an IRA, plus an additional $1,000 if you’re 50 or older. While you’re at it, start setting aside money now for this year’s IRA. To learn more about the tax implications of IRAs, visit irs.gov.
Bottom line: The more you put in your IRA now, the faster your retirement savings will grow.
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