Save BIG on Taxes – Priority #1

If you are looking for ways to save BIG on taxes, you have come to the right place.  We will start posting on ways to save big on your taxes over the next couple of months.  Therefore, without further discussion, I am going to provide you with the number 1 priority for your family to save the most money on your taxes.  It is very simple….max out your 401K.

Yes, that is right max out your 401K.  This is priority number 1!  Don’t do anything else first.  Do not invest in IRA’s, Whole Life Insurance Plans, that new car,  etc…  Again this is priority number one … say it with me, “MAX OUT YOUR 401K PLAN FIRST.”  Have I made this point clear.  I hope so!

Why is this so important you might ask?  It’s because you will be able to put away as much as $16,500 in the year 2011 toward a retirement account TAX FREE.  That’s right you can move money from being taxable to nontaxable.  If you have a 20% effective federal tax rate, this will save you $3,300 in taxes during the current year.  Further, your employer most likely will match a portion of your 401K plan contribution therefore making this more valuable than any other investment opportunity!  DO IT!!!  MAX OUT YOUR 401K PLAN.

Another important thing to mention, after you do the smartest tax savings priority, do not touch your 401K until you retire.  Therefore, you will not have to pay any of those IRS penalties and watch your money disappear to the government.  Instead, keep it in the plan until retirement.  At that time, it will be taxable, but hopefully accumulate a lot of money tax free over the years!

Check back in the upcoming months for future ways to save BIG on your taxes!

 

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Pursuant to applicable U.S. Treasury Regulations, we must advise you that any tax advice included in this communication is not intended or written to be used, and cannot be used, by a recipient for avoiding penalties that may be imposed on the recipient by any governmental taxing authority or agency.

 

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- who has written 7 posts on Todd Jackson Accountabilities, LLC.

is the owner of Todd Jackson Accountabilities, LLC. He is a CPA and entrepreneur providing expert financial advice to fast growth companies and individuals.

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