🎙️ H&R Block of North Platte and Ogallala Tax Tip (Week of Apr.4)

Retirement Contributions

Maximizing your retirement contributions can be a smart tax planning strategy. By contributing to a retirement account, such as a 401(k) or IRA, you can lower your taxable income and save for your future. Here are some tips to help you maximize your retirement contributions:

First, make sure you understand the contribution limits for your retirement account. For 2022, the contribution limit for a 401(k) is $20,500 for individuals under age 50, and $27,000 for those age 50 and over. The contribution limit for a traditional or Roth IRA is $6,000 for individuals under age 50, and $7,000 for those age 50 and over.

Second, consider increasing your contribution rate if you're not already contributing the maximum amount. Even if you can't afford to contribute the full amount, contributing as much as you can afford can still help lower your taxable income and save for your future.

Third, take advantage of any employer match or other incentives offered by your employer. Many employers offer a match on 401(k) contributions, which can be a significant boost to your retirement savings.

Overall, contributing to a retirement account can be a smart tax planning strategy, as it can help lower your taxable income and save for your future. By understanding the contribution limits, increasing your contribution rate, and taking advantage of employer incentives, you can maximize your retirement contributions and potentially save money on your taxes