8 Tax Tips You Should Definitely Take Advantage of This Year

4. Cut your taxes in order to save more for retirement

If you contribute to a workplace 401(k), it can provide higher tax savings as you can actually deduct the entire amount of your contribution up to annual limits. As a matter of fact, depending on your income, you may also be able to deduct contributions made to an Individual Retirement Account (IRA).

Did you know that you can also claim a deduction for contributing to these retirement accounts even when you don’t itemize? That’s why you should contribute as much as you can or even consider maxing out these accounts. You can cut your tax bill significantly while preparing yourself for a more secure retirement when it comes to finances.