Boost Your Retirement Savings
Increasing your retirement savings contribution is one of the very best ways to save money for your future and also decrease the amount you pay in taxes. When you deposit money in to your 401k plan or other type of retirement account is it tax free. There are limits on the amount that can be contributed by yourself and your employer but none the less you should take full advantage of the amount that you can deposit.
Self-Employed
If you are currently self employed you can have an even greater tax savings because you contribute to your retirement in two ways. One as an employee and the other as an employer. There are many types of retirement and savings accounts for business owners.
There is the solo 401K plan that has its own limitations as well as a SIMPLE IRA that has different limitations on the amount that can be deposited tax free. For example, on a solo 401k plan you can deposit up to $45,000.00 annually that will be tax deferred. If you use the SIMPLE IRA you can save up to $10,500.00 annually and another 3% from your business contribution.
Employer Contributions
It is important to understand employer contributions in relation to a tax savings. Whatever amount your employer matches on your retirement contribution does not go towards your tax deductible limitations. If you are not currently contributing the amount that is necessary to take full advantage of your employer contribution than you are essentially giving away money.
Always try and contribute the full amount in order to receive the full match from your employer.
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