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Individual retirement accounts (IRAs) and 401(k) savings plans have several advantages. First, they are an easy way to begin saving for retirement when you should: as early as possible. Any employer contributions add to your savings, and there are long-term tax advantages, in that taxes are deferred on the money you save.<\/p>\n
Now there is an additional tax incentive that you do not have to wait until retirement to take advantage of: The Saver’s Credit is a credit of up to $1,000 (or $2,000 for a married couple filing jointly) for IRA and 401(k) contributions. A credit is better than a deduction: it is a dollar-for-dollar reduction of the income taxes you owe or a refund of what you have already paid.<\/p>\n
Income limits apply. For 2013 they are: $59,000 if married filing jointly; $44,250 if filing as head of household; and $29,500 if single or married filing separately. The amount of the (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Individual retirement accounts (IRAs) and 401(k) savings plans have several advantages. First, they are an easy way to begin saving for retirement when you should: as early as possible. Any employer contributions add to your savings, and there are long-term…<\/span><\/p>\n