This year’s tax-filing deadline of April 18 is not that far off, but you still have time to make some moves that could favorably affect your tax returns. So, you may want to consider some tax-smart contributions.
For starters, you have until the April 18 date to contribute to your IRA, or to open one for the 2021 tax year. With a traditional IRA, your earnings can grow tax-deferred, and your contributions may be tax deductible, depending on your income.
Here’s another suggestion: If you were eligible to contribute to a health savings account, you can still add to it for the 2021 tax year. As with a traditional IRA, your contributions are made with pre-tax dollars, so they can reduce your taxable income for the year.
In looking beyond your 2021 taxes, you might also want to consider boosting the amount you put in to your 401(k) for 2022. It’s another chance to make pre-tax contributions and lower your taxable income.
To learn more about how your contributions, in various forms, can affect your taxes, consult with your tax advisor. The more you know, the better your decisions.
This content was provided by Edward Jones for use by Daniel Pellerin, your Edward Jones financial advisor at 189 East Main Street Suite G, in Newport, (802) 334-6261.