Keeping more money in your pocket ought to be the goal of every investor. There are many ways to do it, but putting some of your assets into an individual retirement account (IRA) can give you several ways to reduce taxable income. You will need to have a traditional IRA to start, and by strategically placing the right assets into it, you can reduce your taxes.
When you put earned money into a traditional IRA, it is immediately tax deductible. In 2024, contributions are limited to $7,000 unless you are 50 or older, which enables you to contribute another $1,000. Contribution limits are the same for traditional or Roth IRAs.
