Think You Might Owe the IRS in April? 3 (Easy!) Ways to Lower Your Tax Bill
One of the trickiest things about investing in retirement accounts is that by the time you know how much you could\u2019ve contributed for a tax break, it\u2019s too late (e.g., you can only make 401(k) contributions through Dec. 31).\nBut there are a few accounts in the tax-advantaged investing world that allow contributions right up until the tax deadline, making them incredible options for last-minute savings.\nAfter all, I prefer deductions that come from investing over deductions for spending: Why would I spend $100 to save $32 when I could invest (read: keep) $100 to save $32?\n\ufeffReminder: I\u2019m not a licensed tax professional. Please consult your CPA and do your own research before making big money moves.\nLearn more about our sponsor, TaxAct: https://www.taxact.com/moneywithkatie\nTranscripts can be found at podcast.moneywithkatie.com.\n\u2014\nMentioned in the Episode\n\nThe Traditional IRA: https://www.irs.gov/retirement-plans/ira-deduction-limits\n\n\n3 Ways to Lower Your Tax Bill & Navigate Rollover IRA Forms: https://moneywithkatie.com/blog/3-ways-to-lower-tax-bill-rollover-ira-forms\n\n\n2022 & 2023 IRA deduction limits: https://www.irs.gov/retirement-plans/2023-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-not-covered-by-a-retirement-plan-at-work\n\n\nThe Roth IRA: https://www.irs.gov/retirement-plans/roth-iras\n\n\nRoth IRA Income Limitations: https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that-you-can-make-for-2022\n\n\nThe Backdoor Roth IRA: https://www.youtube.com/watch?v=QTODFAUIBhY&ab_channel=MoneywithKatie\n\n\n\nThe Money with Katie Show on building a diversified portfolio: https://youtu.be/qTkVMGi3dFg\n\n\nSEP IRA Contribution Limits: https://www.irs.gov/retirement-plans/plan-participant-employee/sep-contribution-limits-including-grandfathered-sarseps\n\n\nSelf-employment tax: https://www.ssa.gov/pubs/EN-05-10022.pdf\n\n\nSolo 401(k) deadline: https://www.mysolo401k.net/solo-401k-faq-when-is-the-deadline-to-open-a-solo-401k-for-2022-and-make-2022-401k-contributions\n\n\nHigh-Deductible Health Plans (HDHP): https://www.irs.gov/publications/p969\n\n\nHSA Contribution Limits for 2022: https://www.fidelity.com/learning-center/smart-money/hsa-contribution-limits\n\n\nSaving on FICA tax via the HSA: https://www.voya.com/voya-insights/importance-educating-employers-hsa-program-fica-savings\n\n\n\u2014\n\ufeffFollow Along at Money with Katie: https://moneywithkatie.com/\nWatch on YouTube: https://www.youtube.com/@MoneywithKatie\n\nFollow Money with Katie!\n- Instagram: https://www.instagram.com/moneywithkatie/\n- Twitter: https://twitter.com/moneywithkatie\n\xa0\nSubscribe to The Money with Katie Newsletter\n- Sign up for free today: https://www.morningbrew.com/money-with-katie/subscribe/2\n\nFollow the Brew!\n- Instagram: https://www.instagram.com/morningbrew/\n- Twitter: https://twitter.com/MorningBrew\n- TikTok: https://www.tiktok.com/@morningbrew\nLearn more about your ad choices. Visit megaphone.fm/adchoices