By Maureen Renzi, Vice President - Communications
Whether you recently entered the workforce as a full-time employee, you are leaving it to enjoy a well-deserved retirement, or you are somewhere in between, there are tax issues to consider at every stage of your career. Understanding the immediate tax benefits of contributions to IRA and 401(k) retirement plans and the long-term impact of Roth savings accounts can be part of your tax strategy. There are also considerations on how much to save, when to withdrawal, how much to withdrawal, and penalties for early withdrawal. Here are some long- and short-term retirement strategy tips.
Saving for Retirement
Spending Your Retirement Savings
One More Opportunity to Reduce Your 2015 Taxes
If you qualify, it’s not too late to make an IRA contribution to reduce your 2015 taxes. You can contribute right up until April 15 and still deduct it on the previous year’s return if you choose. For 2015, the maximum total IRA contribution for both traditional and Roth forms is $5,500 ($6,500 if you’re 50 or older). This opportunity doesn’t apply to all procrastinators! Contributions may be affected by whether you or your spouse is covered by an employer’s retirement plan. In addition, your income level may have an impact on the amount of your deduction.
A quick tutorial on how to get the most out of retirement tax breaks.
Do you still have questions about your retirement strategy? You can take a look at other Ask a CPA questions and answers, or pose your own questions. If it’s time to hire a financial planner, here are some tips on how to find the financial planner that fits your needs. Retirement planning is just one of many strategies to consider as you prepare your taxes. There are special considerations for homeowners, parents, and investors. A CPA can explain the intricacies of the tax laws and develop your personal tax strategy. PICPA’s CPA Locator is a handy tool to help you find a CPA who can tame your taxes.