The Skinny on Tax-Deferred Retirement Accounts
Just about anyone could benefit from a tax-differed retirement account. These accounts, most commonly known as 401Ks or IRAs, are a great way to save for retirement and in many cases save on taxes. The real question is when do you plan on cashing out that retirement fund? While you will always see immediate savings in your paycheck by deferring some of your income into a retirement account, the time will eventually come when the taxman comes calling.
However, there are some measures you can take to reduce your tax bill. You can convert your 401K plan, which could save you some money in retirement, rather than leaving the money in the tax-deferred account and withdrawing it later. If you do this then your funds will be taxed at the tax rate during the year you withdraw the funds. On the other hand, when you convert these accounts they will be taxed at the tax rate of the year you convert them. That means if this year’s tax rate will be lower than the normal tax rate when you are retired then now might be a good time to convert your funds to a Roth account.
Each person’s situation will vary and timing is the key to a successful conversion. There are also many variables to keep in mind, which is why it’s a good idea to speak with a certified account or experienced financial planner. At GROCO we can help you with your retirement planning to ensure that you get the most out of your retirement savings and keep your tax bill down. Just click here to contact us for help or call us at 1-877-CPA-2006.
Will Your Tax Refund Be Delayed?
It’s only January, but because the calendar has turned to 2015, that means the tax season is officially here. While most people don’t file their taxes in January, there are a few early birds who go after the first worms of the year, so-to-speak. Although it’s often a good idea to make sure the IRS,…
Are You Looking To Invest for Growth?
What kind of investor are you? There are many types of investment strategies and each person will follow the strategy that best fits his or her plan. At GROCO, we can help all kinds of investors, including those who are investing for growth. When it comes to long-term growth, the total return on your investment…
Not Living on the Earth? You Still Have to Pay Your Taxes on Time
You gotta hand it to the IRS for being thorough. They’ll leave no stone unturned in an effort to make sure that every taxpayer files their return. That’s even true of very big stones, otherwise known as asteroids. In other words, even if an astronaut wanted to hide behind an asteroid or a moon rock,…
With Gas Prices Down, Could Gas Taxes Be Going Up?
Rich or poor, young or old, no one likes high gas prices – with the possible exception of oil and gas companies. In any case, the recent drop in gas prices around the country has no doubt brought some relief to just about everyone in America, including big corporations that own large fleets of vehicles.…