Found Money for Tax Deductible IRA Contributions

Found Money for Tax Deductible IRA Contributions

It’s about tax time, which is prime time to talk about contributing to an IRA with funds you already have…but may not know you have. We know this is a prevalent problem, because we get inquiries like this all the time from our clients: “Hey, I’d really like to put $5,500 into my IRA so I can get that tax deduction…but I don’t have that money just lying around! What do I do?”  This isn’t a frivolous concern. If you’re married and filing jointly, with an income around $100,000, you’ll save a tidy $1,000 in taxes with that $5,500 contribution. But there’s good news: you DO have this money around already, even if your bank balance doesn’t reflect it, and any “extra” you have is tied up in investments or the like. You just don’t realize you have it. So where is it? The Hidden Value of Your 401(k) Let’s say that you participate in a 401(k) plan with your employer, and you have $30,000 in the account; or, alternatively, you’ve set up your own IRA, to which you can contribute up to $5,500. The key is, however, that in order to make that contribution, you have to have at

Want to Double Your Real Estate Investment Return? Easy! Use a Tax-Efficient 401K Strategy

Want to Double Your Real Estate Investment Return? Easy! Use a Tax-Efficient 401K Strategy

You’re probably already aware you can use a self-directed IRA to invest in real estate. I’ve written quite a bit on this subject in the past, so if you haven’t read it, feel free to catch up! Those of you who’ve read these posts, however, know that in general I’m not a fan of the … Continue reading Want to Double Your Real Estate Investment Return? Easy! Use a Tax-Efficient 401K Strategy