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Are You Eligible For a Tax Break?




By Stas Bekman.

Published: 16 July 2006

Are You Eligible For a Tax Break?

Check those tax books and guidelines and may be even invest into a consultation with a tax expert. A little invested time and money may result in a nice check from the government.

Participate in a 401(k) or 403(b) plan, or the equivalents. This shrinks your taxes and saves you for the future.

Put as much as you can into tax-free IRA/Roth IRA/RRSP/other accounts. You get taxed less and the gain on the programs is tax-free, until you withdraw

Be creative and think of the ways you could fit your situation to various deductions and privileges. This is especially important if you have a family and children, as there are many more options that could give you more money back.

Related Material

 

Deducting Losses on Your IRA Investments (http://www.investopedia.com/articles/retirement/05/012505.asp)
Find out what requirements must be met and how it is done.

FAQs regarding IRAs (http://www.irs.gov/retirement/article/0,,id=111413,00.html)
Answers from Internal Revenue Service.

IRA Contributions: Eligibility & Deadlines (http://www.investopedia.com/articles/retirement/05/021505.asp)
a checklist of some of the requirements needed to make these payments in a timely manner

Roth IRA Myths (http://www.rothira.com/rothmyths.htm)
Roth IRAs are too good to be true. Tax-free compounding. Tax-free compounding. What else need be said?

Individual Retirement Account - IRA (http://www.investopedia.com/terms/i/ira.asp)
An IRA is a retirement investing tool that can be either an "individual retirement account" or an "individual retirement annuity".

Roth IRA (http://www.rothira.com/)
"A Roth IRA is worth more than a conventional IRA because withdrawals from it are forever tax-free..."

Tax Topics - Topic 424 401(k) Plans (http://www.irs.gov/taxtopics/tc424.html)
A section 401(k) plan is a type of tax-qualified deferred compensation plan in which an employee can elect to have the employer contribute a portion of his or her cash wages to the plan on a pre-tax basis.

403(b) Plan Tutorial (http://www.investopedia.com/university/retirementplans/403b/)
A 403(b) plan is a retirement plan for certain employees of public schools, tax-exempt organizations and ministers. Individual 403(b) accounts are established and maintained by eligible employees.

RRSPs and related plans (http://www.cra-arc.gc.ca/tax/individuals/topics/rrsp/menu-e.html)
Information for annuitants, contributors, or beneficiaries of registered plans for retirement, buying or building a qualified home, or continuing education.

Investment Centre | RRSP Centre (http://www.bmoinvesting.com/RRSP/)
If you are considering an RRSP, there are a few things you will need to know to get started.


 

 

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