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Every wonder what setting up an IRA really can do for you and your family?
All these years of hearing about IRA’s (Individual Retirement Account) I never really understood much about them. I was having dinner with a high school friend that was back in town (Lives in FL now) and she was telling me she owes some federal taxes for 2020.
She is a Family Lawyer. She was not involved in a pension plan for 2020. I was telling her about the pension plan I had at work and really had no clue what it was doing for me or what it could be doing, and that was all I had done so far for my future planning. I got a lesson from her that was invaluable, so I called a local finance guru that I know has been helping so many around my area. Figured someone that everyone uses locally was a good place to start furthering my education and potential interest.
Back to my friend, she is in the 24% tax bracket and she can buy an IRA. Individual Retirement Account, and invest $6,000. If she invests $6,000 in an IRA, she will get a tax deduction of 24% of $6,000 or $1,440. Hmm, sounds interesting so far.
If she was over age 50, she could invest $7,000. This year, 2021 she is involved with a 401 K plan as she now qualifies for an employer sponsored plan. Depending on income, she can decide to also invest in an IRA, or Roth IRA. She had a prior 401 K plan at another job. She left that job, and she can now rollover her old 401 K plan into her own IRA. She is NOW an employee of a Law firm.
This lead me to do the same…as I had just left my full time job of many years, and go back into business for myself. I made the call, was guided every step of the way (so easy) and now I feel super secure that I am investing in my future and now I understand what is really happening with my money! It’s actually EXCITING! Who knew? I’m trying to talk to my 33 year old and his wife about it too now.
If she leaves that firm and opens her own Law Firm, she can open a SEP. Self Employed Pension Plan. She can invest up to 20% of net profit up to $57,000 per year.
For 2020 Taxes, you can acquire a SEP or IRA, up to April 15, 2021.
My Guru financial friend puts out a monthly newsletter that I actually really enjoy…let me know if you want me to put you in touch with him!
CAPTION: Derek, Savannah, Jami and Darion ~