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Web Extra: Taxes and retirement planning

December 1, 2015 -  By

In addition to other tax-minimizing strategies, don’t forget about your 401(k).

The tax savings associated with maxing out your retirement plan for 2015 is $18,000. For a taxpayer in the 25 percent tax bracket, that equals a tax savings of $4,500.

The catch-up contribution limitation for individuals age 50 and older is $6,000. That translates into another $1,500 of savings for an individual in the 25 percent tax bracket for a total tax savings of $6,000.

If the company does a 401(k) match, it’s especially important that you contribute the maximum amount required to get the full match. Otherwise, you are leaving free money on the table.

This is posted in 1115, LM Web Extras

About the Author:

Gordon is a New Jersey-based CPA and owner of Turfbooks, an accounting firm that caters to land care professionals throughout the U.S. Reach him at dan@turfbooks.com.

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