The following is a quick list of tips that can help reduce your tax liability your retirement plans. It also shows how making contributions to the right self-directed IRA are important to the entire process.
Ensure you open an IRA before the tax filing deadline
It is important to note that not all retirement accounts assist in reducing your tax liability by reducing the tax bracket. However, having a traditional IRA could help you solve that problem and it would be the best thing to do before the deadline for filing returns collapses on April 17th this year.
Contribute to several retirement accounts
The good thing about IRA is that it doesn’t limit anyone from holding more than one retirement account. As a result, you can take advantage of that to run several parallel accounts for your own retirement safety.
Specify how you would want your contributions to be applied
It is always important to keep an eye on the calendar so that you can specify the exact year you would like your contributions to be applied to.