For taxpayers covered by an Employer Sponsored 401(K) Plan:
Did you know adding to your 401(K) from your take home pay lowers your taxable income? So you pay less tax! The max 401(K) contribution for 2021 is $19,500 ($26,000 for 50 and older). There’s an added bonus for married tax payers as they receive double the tax savings!
For taxpayers with a Traditional IRA:
You can claim a tax deduction for contributions made to a Traditional IRA. The max contribution for 2021 is $6,000 ($7,000 for 50 and older). The nice part is you have until April 15, 2022 to make the contribution. *However, some IRA deduction limits do apply.
Reach out to your Friendly CPA (Me- Danielle Robinson) for more information!
