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401(k) savings can help you save on income taxes

Source: https://usatoday.com/story/money/2017/10/23/401-k-savings-can-help-you-save-income-taxes/781899001/ - Oct 23, 2017

With President Trump’s tax proposals taking aim at many deductions now used by Americans to lower their tax bills, the 401(k) retirement account is re-emerging as a go-to vehicle to shield one’s earnings from the IRS.

The IRS said last week it is upping the maximum 401(k) contribution for 2018 by $500 to $18,500. Americans 50 or older will again be able to stash away an additional $6,000.

That makes the 401(k) an even better tax shelter than it already was. 401(k) plans allow workers to save money for retirement on a pre-tax basis, which lowers their taxable income.

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Category: General Business