Every year about this time I start thinking about all the things I should have done to reduce my 2009 taxes, or I at least start figuring what I want to do to reduce what I’ll owe at the end of 2010.
There is, however, one thing you can still do (until you file your taxes) that can significantly reduce the amount of taxes you owe for 2009: contribute to a traditional IRA. I’ve done this in years past with great success. The traditional IRA is what got me started with retirement savings. You can still contribute to your 2009 IRA until April 15, 2010, and you can make IRA contributions for the 2010 tax year from January 2, 2010 and April 15, 2011. If you make an IRA contribution between January 2 and April 15th you should designate which tax year your contributions are for.
The traditional IRA, I’ve found, is an excellent way to not only to reduce the amount of taxes you owe now, but also to help you save more for retirement. For more information regarding opening and IRA or questions how to efficiently reduce your taxable income give me a call.
