There are few better ways to decrease your tax bill, and
thereby increase you tax refund, than
taking advantage of the IRA tax deduction
taking advantage of the IRA tax deduction. Assuming you qualify
for it, making a contribution to a traditional IRA allows you to
reduce your taxable income by as much as $5,500 -- $11,000 if
you're married filing jointly.
How big of an impact does this have on your tax liability?
Consider this: If you and your spouse earned a combined $90,000
in taxable income last year and didn't contribute to a retirement
plan at work, then you could decrease your tax bill by $2,750
simply by transferring $11,000 from your savings account into an
Think about that for a second. It's basically the same thing
as investing $8,250 into the stock market and getting an
immediate 33% return. Take it from someone who writes about
investing for a living, that's unheard of -- and particularly
when you consider that it carries no risk.
With this in mind, I created the following short presentation,
which covers the most important things you need to know about the
IRA tax deduction.
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IRA Tax Deduction: What You Need to Know
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