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Tax Tip: Get familiar with maximum contributions to retirement plans

Fox 4 is giving you five Tax tips to help you file this season
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Tax Tip: Get familiar with maximum contributions to retirement plans
Posted at 7:22 AM, Feb 16, 2021
and last updated 2021-02-16 07:22:12-05

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.

Our second tax tip: Bruno said if you're still building toward retirement, get familiar with the limits and maximum contributions to different retirement plans.

"Be very familiar with those, because contributions to traditional retirement plans are always tax deductible, so it's helping you get that deduction. And right now, deductions are hard to come by," he said.

Bruno also said if you're someone who donates to your Church every Sunday or gives to charities, those contributions aren't necessarily going to be tax deductible anymore.

"Because if you don't give above the standard deduction threshold that the IRS is giving out, you're not getting a deduction for those anymore. So it's even more important to look at your contributions to retirement plans, and get as much of that deduction as you can, and contribute as much as you can into retirement plans," he said.

For a break down of all the tax brackets and retirement contribution amounts, click here.