Fox 4 is giving you tips to help you file your taxes this season. We've partnered with Adam Bruno at Evolution Retirement Services and Wealth Management to answer your questions about filing your taxes.
The deadline to file your taxes is April 15th.
Our third tax tip: Make contributions to a Roth as much as possible.
Bruno said if you're still working, it's important to remember: anything going into a retirement plan -- whether it's your 401K, your IRA, or whatever you're contributing to -- you will have to pay taxes on, and by the time you do, you'll likely be doing so in a much higher tax bracket.
"So it's important for everyone to realize, when they make these contributions, it's not that you're getting away from the taxes, it's that you are going to pay the taxes on it eventually. And we're in the lowest tax environment we've ever been in in the history of our country. So what I would tell you is look at your options for Roth IRAs, Roth 401Ks. Make contributions to a Roth as much as you can, because, taxes are the lowest they've ever been right now in these tax brackets. So prepare yourself for later on, when they're going to be much higher," Bruno told Fox 4.
Bruno said with Roth IRAs, you're paying the taxes on the money now, so the money grows tax-free. With a Traditional IRA, you delay those taxes until retirement, which means you'll likely be taxed in a higher bracket.