No matter how much you like your job, where you work, or how old you are, you are probably looking forward to the day that you can retire, but you will never get there if you don’t start saving. Saving for retirement is now trickier than it has ever been, and that is due to the simple fact that people are living longer than ever before, so it makes sense to save more than ever before. If you aren’t careful, taxes can really hurt you during your years of retirement, but luckily our Maryland tax attorney can help!
One of the most difficult parts about planning for retirement is understanding where to put your money. Do you put it in a 401k, a Roth IRA, or just a simple savings account? Each one has its own advantages and disadvantages, so the real answer is all three! Retirement plans, like a company run 401k or a traditional IRA, are great options, but it is important to note that, because you contribute to them before taxes, you will have to pay taxes when it comes time to withdraw your funds. These accounts are still beneficial for your current situation because they decrease your taxable income, but it is a good idea to also have another option, like a Roth IRA. You contribute to your Roth IRA after you pay taxes, so you won’t have to pay taxes again when you withdraw from it. It is also incredibly beneficial to have a savings account dedicated to your retirement, because there will be no fees if you have to access it early.
When it comes to saving for retirement, diversity is key. Want to learn more about saving taxes during retirement? Feel free to contact our experienced tax attorney in Maryland today!