Amherst, NH Residents Looks for Advice
Contributing a portion of your income into a tax-deferred retirement savings account, like an IRA, can reduce your total income. This may be able to put you into a lower tax bracket, saving money while still putting aside money for retirement. A 401(k) works much the same way, allowing contributors to defer paying income taxes on contributions. This can make a big difference for those that are in a high tax bracket, since when the income is withdrawn you will likely be at a much lower tax bracket.