Retirement Plans Provide Great Tax Benefits
to Individual Taxpayers

You Get Tax Break Now and Money For the 'Golden Years'

July 2, 2008
By: Tim Nivison

This week, I would like to talk about retirement plans. These are one of best tax write offs out there for individual taxpayers.


There are several types of retirement plans, but the most popular are the wage deferred plans like the 401(k) and the simple Ira plan. By investing in your retirement plan your are putting monies away for your future and saving on your income taxes today.

In a simple Ira you can defer up to $10,000 a year and if your over 50 years of age you can defer up to $13,000. In a 401(k) plan you can defer up to $15,500. For people working in the school system and hospitals there are the 403(b) plans.

I can't emphasis enough what a great tax write off this is as well as investment into your retirement. If you're young and fresh out of college your going to need to have some tax write offs, what better way than to start funding a retirement.

It also will help you build a nice nest egg at a young age because when you start a family your contributions will drop off. Another advantage is the employer contributions that are available when you contribute.

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If your employer offer a retirement plan get in it! Your investing in yourself and getting income tax saving as well.