This is not only tax season — but it’s also retirement account season. Between now and tax deadline day you are going to hear a lot about making contributions to your retirement accounts. Banks, stockbrokers, gold and silver dealers, even cryptocurrency companies are going to be advertising for your retirement money.
I tell you all the time to talk to a professional before you make decisions about your taxes — and when it comes to putting money into retirement accounts you really need to talk to professionals.
Let me repeat that because it’s very important — talk to professionals about your options for retirement accounts. You need to talk to them because there are all sorts of issues you must consider.
Some retirement fund contributions give you tax deductions now — and some don’t.
Some retirement funds grow tax-deferred.
Some retirement funds have limits based on your income.
If you’re getting near retirement age you may be allowed to contribute more than someone who is younger.
There are so many things to consider.
Some retirement funds let you withdraw your money without penalties, some have penalties until you reach retirement age.
But let’s consider the big question. Should you even put money into a retirement plan? The answer is basically yes — but there may be some exceptions.
For example, if you have big credit card bills and you’re paying very high-interest rates it might be better off for you to skip a retirement contribution this year and instead pay down your debt.
And if you’re saving to buy a home — keeping the money aside for your downpayment might be the right thing to do.
This is why you need to talk to a professional. And talk to your significant other or your closest family members. This is not a simple decision to make.
And I’m going to make another suggestion. Don’t talk to just one professional. Talk to several, because when you talk to a professional at a bank and you talk to a professional at a gold dealer, and when you talk to a professional at a stock brokerage, you’re going to get different opinions.
Frankly, when it comes to retirement plans, when you talk to three different professionals you’re going to get at least four different opinions.
Remember, Legal Tax Defense will give you a free consultation if you have tax issues. Call now for immediate help.
I’m Alan Mendelson. follow us for more tax tips.
Disclaimer: Alan Mendelson is a well-known TV consumer news reporter who reports on tax issues. You should seek professional advice if you have tax questions or issues.