This morning, as my dad was coming down the stairs and I was heading up, he casually mentioned “So, how much did you contribute to your IRA this year?”
None, at all, since I’m paying into a (seriously flawed) pension plan, and started a 403b at the end of the year. I have an IRA out there that was started a while ago, but I haven’t paid in since rolling it to Ameritrade over a year ago.
“Yeah, but you can still contribute. Would that change your taxes?”
HELL, YES. So, putting even 2k into my IRA will cut our tax debt by more than half, which yes, is more money than just paying The Man himself, BUT, I’m paying myself instead. Sweet.
So, all of you “Whaddyamean I OWE taxes?” Start an IRA! Ameritrade is great, if you need a place to start. You can contribute up to 3k, tax free, and you’ve added to your retirement fund. Just imagine the white shoes and big handbags 3k this year will buy you in the future.
Oh my GOD, I cannot believe I didn’t think of that in the past three days as we have been talking on AIM. Some accounting student I am. Good for you! and yay for your dad!
See, there you go. The universe is indeed working for you, through your dad.
TIAA-CREF specializes in financial planning for educators and those who work in the public sector or non-profits. They might be another good option.