As September rolls in, it’s a great time to think about maximizing your retirement contributions before the year ends. Contributing to retirement accounts like IRAs and 401(k)s not only secures your future but can also offer significant tax advantages today.
Why September Matters
Many people focus on December for retirement contributions, but starting early can give you time to adjust your plans and maximize your tax benefits. Some accounts allow contributions up until tax filing deadlines in the following year, but it’s best to get ahead now.
Types of Retirement Accounts
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Traditional IRA: Contributions may be tax-deductible, lowering your taxable income now.
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Roth IRA: Contributions are made with after-tax dollars, but qualified withdrawals are tax-free.
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401(k): Employer-sponsored plans often have contribution limits and sometimes offer matching funds.
Tax Benefits of Contributing
Contributions to traditional retirement accounts can reduce your taxable income, potentially lowering your tax bracket. Plus, earnings grow tax-deferred until withdrawal.
How to Maximize Contributions
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Review your contribution limits for the year.
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Increase your payroll deductions if possible.
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Consider catch-up contributions if you’re over 50.
Bottom line:
September is a smart time to review your retirement savings and make moves that benefit your taxes and your future.
Want help planning your retirement contributions with tax benefits in mind? Contact us today.
Call (678) 675-4268 or schedule a consultation:
https://ilovedoingtaxes.net/schedule-now/
