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Created: March 15, 2024
Modified: March 14, 2024

Podcast Episode 348: Leveraging Your IRA & SEP IRA for Tax Planning

What You’ll Learn:
The good news is there are ways to potentially save on your taxes even though we’re in a new year, and today we’re going to talk about how with Matt Pastor, RICP® on our latest podcast. This conversation is particularly beneficial for individuals who have just realized their oversight in contributing to their Individual Retirement Account (IRA).

We’re in the middle of tax season and many people are still getting their paperwork together and wondering about ways to save money on last year’s taxes. The good news is there are ways to potentially save on your taxes even though we’re in a new year, and today we’re going to talk about how with Matt Pastor, RICP® on our latest podcast. This conversation is particularly beneficial for individuals who have just realized their oversight in contributing to their Individual Retirement Account (IRA).

So, is it possible to contribute to your IRA after the end of the year and still benefit from the associated tax advantages? The answer is a resounding yes. The key is to comprehend the deadlines and limits for contributions. For 2023, individuals under 50 years old can contribute up to $6,500, and those over 50 years old have an increased limit of $7,500. It’s noteworthy that these limits have been raised for 2024.

However, before hastily making that contribution, we want to take time for thoughtful consideration. The focus should not be solely on the immediate tax break, but on the larger picture of strategic financial health. For some, contributing to a traditional IRA may not impact their tax liabilities significantly if they’re already in a higher tax bracket. In such instances, a Roth IRA or augmenting your liquid assets could be a more prudent strategy for long-term financial stability.

This podcast aims not only to provide financial advice but also to reshape our perspectives on taxes. There’s a common tendency to prioritize immediate savings over long-term financial strategies, potentially missing out on substantial future savings. Individuals who have significantly progressed in their savings journey may face considerable tax liabilities when they reach their Required Minimum Distribution (RMD) age in their 70s, and therefore, it’s essential to consider your entire financial lifespan.

Furthermore, maintaining a sufficient amount of liquid cash is also critical. With increasing interest rates, having readily available cash can prevent the need for high-interest borrowing during emergencies. Striking a balance between savings and liquid assets is crucial.

So whether you’re a disciplined saver, a last-minute tax filer, or an individual seeking to enhance your financial literacy, this podcast episode featuring Matt Pastor offers a wealth of knowledge. Immerse yourself in these strategies to fortify your financial health for the foreseeable future.

Here’s some of what we discuss in this episode:

• Why it’s common for people to not be aware of this IRA option and what you need to know about contribution amounts.

• Should you put money into those retirement accounts or is it better to use elsewhere?

• How significant could the tax savings be over time?

• Where do you find the balance between liquidity and adding to retirement accounts?

Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.

Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.

Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.

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