Blog and News

view all blogs

3 Great Tax Tips to Maximize Your Retirement and Minimize Your Payments to Uncle Sam

 1. Contribute to a traditional IRA.

I know you are already thinking it's too late for 2013 but I have good news--- you can make your 2013 IRA contribution up until the due date of your return including extensions (April 15th or October 15th if you file an extension). I have more good news for those of you who make too much money to receive the IRA tax deduction---you can still contribute to an IRA and any appreciation in value is not taxed until you receive distributions from your retirement account


2. Give yourself a raise---make 401k or 403b contributions at the office.
This is one the best tax breaks Uncle Sam ever created--take full advantage and watch your savings grow. Better still if your company matches your contribution---you are giving yourself an instant raise and receiving a tax break. So what are you waiting for?


3. Start investing in capital growth stocks

Blend your retirement strategy to include non-tax deferred investments in equities. Since Uncle Sam does not tax appreciation on stocks until you sell them your money will grow tax deferred in high growth stocks that don't pay a dividend (examples Google or Netflix). More good news---when you do cash these investments in during retirement---Uncle Sam taxes these types of appreciated capital gains at a lower tax rate than funds received from a retirement account (401k, IRA, etc.)