If you're trying to save money on your tax bill, you may want to consider opening and funding a tax-advantaged account, such as a 529 plan, Roth IRA, or Health Savings Account (HSA). These accounts offer various tax benefits, such as tax-deferred growth, tax-free withdrawals for qualified expenses, and potential tax deductions for contributions.
ABLE accounts aren't just for saving money — they're investment accounts, too. They offer great tax benefits for people with disabilities, allowing them to save and invest without jeopardizing their eligibility for government benefits.
A Chicago funds manager is the latest real estate firm offering tax-advantaged investments with stakes starting at $250,000 in upcoming projects. These investments provide investors with tax benefits such as depreciation deductions and potential appreciation in property value.
Smaller real estate owners can now get many of the benefits previously only available to institutional investors through tax-advantaged investments like Real Estate Investment Trusts (REITs) or Opportunity Zone Funds. These investments can help diversify their portfolios and potentially reduce their tax liabilities.
US wealthtech FutureMoney has unveiled its micro-investing platform that aims to help give parents options and make investing more accessible. This platform allows users to invest small amounts of money in tax-advantaged accounts like 529 plans or Roth IRAs, helping them grow their wealth over time.
Whole life insurance is marketed as an investment, but it isn't the right choice for everyone. Learn the pros and cons of investing in life insurance and consider alternative tax-advantaged investment options like retirement accounts or real estate.
Tony Cross of Edmond, Oklahoma emphasizes that by carefully selecting investment options such as municipal bonds, index funds, and ETFs, investors can maximize their tax advantages and grow their wealth over time. These investments offer diversification and potential tax benefits that can help investors achieve their financial goals.
Here's a rundown of the most common types of retirement accounts, how they work, and which ones will help you save for your retirement while minimizing your tax burden. Consider contributing to tax-advantaged accounts like Traditional IRAs, 401(k)s, or SEP IRAs to take advantage of tax-deferred growth and potential employer matching contributions.
529 plans were created in 1996 to give families a tax-advantaged way to save for college. Roth IRAs were created a year later to give people additional tax benefits for retirement savings. By contributing to these accounts, investors can save money on taxes and grow their wealth over time.
