Now that the calendar year 2023 has passed, you’ve started on your taxes (or thought about it). If you’re like me, you would love to know any way you could lower your taxes. Depending on your situation, instead of paying more taxes, you might be eligible to contribute to your retirement accounts after December 31. Pre-tax contributions will reduce your taxable income, whereas Roth contributions will not reduce your taxable income.

The contribution limits set for 2023 are $6,500 (under age 50) / $7,500 (age 50 or older) per individual for a Traditional IRA or a Roth IRA. Keep in mind that you can contribute to a spouse’s account, even if they do not have any earned income to report, if you file jointly.

SEP IRA and Solo 401k contributions are based on the amount of income generated by your business.

Deadlines to Contribute for each type of account:

Traditional IRA / Roth IRA – April 15

SEP IRA – Tax Filing Deadline for your business (plus extension up to 6 months)

Solo 401K – Tax Filing Deadline for your business (plus extension up to 6 months)

Let us know if you need help determining what’s the best account for you to contribute to.

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