Hello and welcome to STOCKED Pantry with Purpose Podcast. Today I’ll be sharing my thoughts on how you can reduce your tax bill next week by boosting your retirement funds. I’ll also share with you with a handy 401 (k) versus IRA infographic cheat sheet so you can see what may work best for you. And if you are self-employed like me, you can easily set up these accounts in five minutes at Ellevest. Full Disclosure, Ellevest is an affiliate “partner” of STOCKED.
Here goes:
Due to COVID, this year taxes are due on Saturday, May 15th. If you’re like me and you have tax bill, first make sure your personal IRAs are fully funded at 6k—7k if you are age 50 and older. If you work for someone else, see what you still may be able to add to your 401k. This won’t reduce what you owe dollar for dollar, but it will shift what you pay the IRS by a sizable amount. Besides, wouldn’t you rather pay yourself before paying the man?
If you still feel confused, have a look at this post on Substack and see which retirement fund may be best for you. There is not a one-size-fits-all option so thinking about your income and contribution limits, costs, tax advantages, and early distribution considerations are key to your making a sound investment decision.
That’s all she wrote. I’ll be sending out my big monthly newsletter next week and it’s a doozy. And by doozy I mean you aren’t going to believe the podcast talent I have lined up. I still can’t believe my food and finance heroines said yes to being interviewed. Now to figure out all of this recording and editing equipment. Talk soon.
The Tax Man Cometh