The tax rules in 2015 will feature new laws. However, there are still ways that you can invest tax-free. Today, we will provide you with a few of the ways to help you start preparing for tax time now.
Invest in a 401 (k) with Price Matching by Your Employer
Your 401 (k) is a great way to invest your money. You benefit by receiving a lower AGI. While being smart with your money your employer will match between 3-4% of what you invest.
Invest in a Traditional IRA
You can invest a maximum of $5,500 per year into your Traditional IRA account. This account type is a tax-deferred account like the 401 (k). However, you can only make a certain amount of money to qualify for the deduction. Single filers who also have a retirement plan from their employer are only allowed to make between $61,000 and $71,000.
Visit our Shoreline Blog to Read “Three Mistakes You Don’t Want to Make with Your ROTH IRA”
Contribute the Maximum Amount to Your 401 (k)
After you have maxed out your Traditional IRA, go back and max out your employee matching 401 (k) account. This means that you can invest as much as $18,000. We recommend contributing the maximum amount here after your traditional IRA since the balance is higher and it allows you to get rid of any excess money.
For more help, get in touch with Seattle CPA firm Huddleston Tax CPAs. Investing smartly can help you save money when tax season rolls around. If you haven’t already set up the accounts discussed above, make sure you start them soon. Give us a call at (425) 483-6600.