Little-known Tax deduction for your Valentine

Punxsutawney Phil did not see his shadow, the Kansas City Chiefs won the Super Bowl, and Valentine’s Day is here. It’s a busy time of year, and while “Be my little tax deduction” isn’t the most romantic thing to say to your spouse this holiday, we’re going to discuss a tax deduction you can make for your Valentine before April 15^th in today’s show.

 

Here’s some of what we discuss in this episode:

• The randomness and unpredictability of Groundhog’s Day, the Super Bowl, and the stock market
• What is a spousal IRA contribution and how does it differ from a normal IRA contribution?
• How can spousal IRA contributions benefit retirees and pre-retirees in terms of tax deductions and retirement savings?
• The implications of IRA contributions for individuals over age 73 + alternative retirement savings options for self-employed individuals

 

Resources for this episode:

Wall Street Journal Article – Spousal IRAs

https://www.wsj.com/personal-finance/retirement/theres-still-a-way-to-double-your-retirement-tax-breaks-before-filing-0f689dc1?st=cssro7zcnwkzp8r&reflink=desktopwebshare_permalink

 

Income limits for IRA deductions

https://www.irs.gov/retirement-plans/2023-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-work

 

Get in touch with Don and learn more: https://doncashpodcast.com/