Tips for Using Your IRA as a Last Minute Tax Deduction

If you have an IRA, you have a way to make a last minute tax deduction. Today, we are sharing a few tips that will allow you to use your IRA as a last minute tax deduction.

Max out Your Contributions

With a traditional IRA, you can make as many tax-deductible contributions as you like within your limits. If you want to save money on taxes in the end, you should max out your ROTH IRA because it will be taxed when contributing yet when you withdraw you do not have any taxes.

Contribute for the Prior Year in the New Year

After you receive your taxes owed amount you may find it to be too expensive. Keep in mind that you can contribute to your IRA up until tax day for the prior year. We think that it is best to contribute to your future than to give your hard-earned money to Uncle Sam.

Save For Retirement Early

Once you have gotten everything out of the way for the current tax year, why not go ahead and start preparing for the New Year? You can set up automated contributions for retirement during the year.

1. Max out your 401 (k) account through that has employer matching
2. Try to reach your maximum limit on your ROTH IRA
3. Put more money into a 401 (k)

Closing Thoughts

When you automate your contribution payments in the beginning of the year you can make sure that you have tax breaks available at the end of the tax year. Huddleston Tax CPAs can help you use your IRA as a last minute tax deduction. Call us at (425) 483-6600 or visit our Bellevue CPA site.

Be Sociable, Share!