When financial planning tips are suggested, increasing IRA contributions tops the list. An IRA allows you to save money towards your retirement. There are two types of IRA, a traditional and a Roth IRA. A traditional IRA is money saved pre-tax which counts as income upon retirement while a Roth IRA is after tax.
Save money on taxes down the road even if you don’t meet the income qualifications to contribute to a Roth IRA through a ‘backdoor Roth IRA contribution.’ Simply put, contribute funds to your traditional IRA then immediately move them to the Roth IRA before they have a chance to collect any income. Then you don’t have to pay any income gains on your taxes. Contact your financial planner today for full details.
