by Chip Basel
Looking for ways to decrease last year’s income and boost your savings?
You have until April 15th to contribute to a Pre-Tax or Roth IRA.
If you contribute to a Pre-Tax IRA, you can deduct that amount from your reportable income. Remember that when you withdraw those funds in retirement, it will be fully taxable at your income rate.
If you contribute to a Roth IRA, it will not affect reportable income on your tax return, but when you withdraw the funds, they are tax free.
You can contribute a cumulative amount to a Roth and/or Pre-Tax IRA of $5,500 per year (or $6,500 age 50 or greater). Please see your tax advisor about which account is best for you!