Today, more than ever before taxpayers are looking for smart, effective and safe ways of saving money on taxes.
Here are a few basic and important strategies that can help you save money each and every year on your individual or business taxes. For example, consider taking full advantage of your company’s 401(k) match.
This is a smart way of deferring taxes while allowing money to grow and compound over the years. Many people are surprised to discover how fast a 401(k) can grow.
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In addition, contribute the maximum amount possible to your workplace savings plan. Saving as little as a few percent of income each year can add up considerably over one’s career.
Contributing to an employee type workplace savings plan is tax-deductible and is an excellent way to grow a retirement nest egg. Another alternative is to consider “increasing” the amount contributed to a workplace savings account by 1% each year.
This is an incremental rise that can substantially increase the amount of money available upon retirement.
Traditional IRA and a Roth IRA
Equally important is to consider paying down high interest debt. Paying off credit cards, a second mortgage or other types of high interest debt can allow for greater disposable income.
Along with this it is also a good idea to contribute as much as possible to your existing IRA account. Talking with your Atlanta tax lawyer is the best way to know for sure how much you can contribute in order to lower your taxes.
It is also important to note that there are differences between a traditional IRA and a Roth IRA when it comes to taxation. Your attorney that specializes in Atlanta IRS tax help can assist and guide you.
Health Savings Accounts
While each case is different, in the simplest of terms anytime to tax rate based on income will be higher going into retirement than it is now a taxpayer may wish to consider opting for a Roth IRA. But again, your tax attorney in Atlanta will know for sure.
Another great way of saving money on taxes is to take full advantage of today’s widely available health savings accounts. A health savings account is a great way to protect for unexpected medical expenses while also lowering your tax burden.
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A health savings account is a highly effective way of saving money for qualified medical expenses down the road. In most instances earnings, contributions and even withdrawals are tax-free in terms of federal tax related purposes.
A health savings account can even be integrated into retirement planning to ensure a more secure future. Whatever the case may be, one thing is certain and that is that there are many ways to lower your tax burden while increasing your financial security and long-term stability.
Contact The Gartzman Law Firm, P.C. an Atlanta Georgia tax attorney today for experienced and dedicated Atlanta tax help.