Jeffrey Schriner photo
Abound Investment Services logo

Jeffrey Schriner

Financial Advisor

 

Abound Investment Services

Located at Abound Credit Union

1650 Ring Road, Elizabethtown, KY 42701

 

Phone:  270-765-8659

Cell:      502-376-0383

 

 

Email: jeffrey.schriner@cunamutual.com

Website: AboundCU.com

Spring 2021

Contribute Now to Reduce Your 2020 Tax Bill

Contribute Now to Reduce Your 2020 Tax Bill

You can lower your tax bill and increase your retirement savings with one simple move. Making a contribution to an eligible retirement account by the April 15, 2021 income tax deadline will reduce your 2020 taxable income by the amount you contribute.


Individual Retirement Account (IRA)
An IRA offers you the flexibility to choose a variety of different investments to hold in your account. For 2020, you can contribute up to $6,000 to an IRA – $7,000 if you’re age 50 or older. You must have “earned income,” including money from wages, salaries, tips, bonuses, commissions, or self-employment, to contribute to an IRA. Your spouse can contribute to an IRA as well.


Additionally, employees with incomes below $75,000 ($124,000 for couples) are eligible to make traditional IRA contributions and still claim the deduction.


SIMPLE IRA
A “Savings Incentive Match Plan for Employees,” or SIMPLE IRA is a retirement savings plan designed for small businesses with 100 or fewer employees. Employees can set aside up to $13,500 in 2020 ($16,500 if age 50 or older). Employers must either match employee contributions dollar for dollar – up to 3% of an employee’s compensation – or make a fixed contribution of 2% of compensation for all eligible employees, even if an employee chooses not to contribute. As with a traditional IRA, you can make a contribution to a SIMPLE IRA until April 15 following the end of the tax year and benefit from the tax deduction.

Solo 401(k)
Solo 401(k) plans are designed to cover a business owner with no employees and his or her spouse. You can make elective deferrals of up to 100% of your earned income, up to the annual contribution limit in 2020 of $19,500 ($26,000 if age 50 or over), plus employer nonelective contributions of up to 25% of compensation. The maximum amount you can contribute to a Solo 401(k) for 2020 is $57,000 ($63,500 if you’re age 50 or older). Contributions can be made to the plan up until the company’s tax return deadline, including extensions. Your financial and tax professionals can help you determine which plan is right for you.

CBSI-3425538.1-0121-0223


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Representatives are registered, securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, which is not an affiliate of the credit union. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. Abound Credit Union and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.