Maximizing IRA Contributions: Deductions, Income Brackets, and Saver’s Credit

Dr. Friday Tax Tips
Dr. Friday Tax Tips
Maximizing IRA Contributions: Deductions, Income Brackets, and Saver's Credit
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In this insightful one-minute moment, Dr. Friday, president of Dr. Friday’s Tax and Financial Firm, highlights the importance of understanding IRA contribution deductions and the impact of income brackets on your tax benefits. She emphasizes the significance of consulting a financial planner to decide between contributing to a traditional IRA or a Roth IRA, considering the long-term tax advantages. Whether it’s saving taxes now or in the future, Dr. Friday underscores the potential to leverage the saver’s credit for those in the 12% tax bracket, advising listeners to make informed decisions for their financial health. Tune into the Dr. Friday Call-In Show every Saturday afternoon for more expert financial guidance.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one minute moment.

IRA contribution deductions. You may be able to deduct contributions to a traditional IRA, though there are some things that you have to think about. One of it is your income brackets. Also, sometimes I’ll meet people, and keep in mind guys, I’m not a financial planner, but from the tax standpoint, if you’re in the 12% tax bracket, you can still get saver’s credit if you make a little less, or you can get the growth for the rest of your life in a Roth. So make sure you talk to a financial planner before making the decision. Is it a traditional IRA or a Roth IRA? Save taxes today or save taxes later? Big question.

You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.