by Wealth Strategies Partners

Paul Allen on the Importance of Limiting Your Tax Bill

Maximize Your Retirement Contributions to Minimize Taxes

Hello, Wealth Strategies partners, friends, and families! I’m Paul Allen, the President and CEO of our firm. As we gear up for the impending tax season, I want to share some valuable insights on how you can optimize your financial strategies to minimize your tax bill while maximizing your wealth-building potential.

At our firm, we are dedicated to, first and foremost, making you money and minimizing your tax liabilities. With tax season in full swing, now is the perfect time to focus on both fronts.

First and foremost, let’s talk about retirement contributions. One of the most effective ways to reduce your tax burden is by maximizing your contributions to retirement accounts. By doing so, not only are you helping to secure your financial future, but you’re also taking advantage of valuable tax benefits.

In 2023, individuals are eligible to contribute up to $6,500 to their Individual Retirement Account (IRA). If you’re over 50, you can make an additional catch-up contribution of $1,000, bringing your total to $7,500. These contribution limits also apply to Roth IRAs, with some income restrictions to consider.

For single tax filers, phase-out begins if your income exceeds $138,000, while for joint filers, the threshold is $218,000. It’s crucial to be mindful of these limitations to ensure you maximize your contributions effectively.

But that’s not all. If you’re an entrepreneur or self-employed individual, don’t overlook the significance of a SEP IRA (Simplified Employee Pension Individual Retirement Account). This retirement option offers substantial tax advantages for small business owners and the self-employed.

In 2023, the contribution limit for SEP IRAs is $66,000 or 25% of your income, whichever is less. By maximizing your contributions to a SEP IRA, you can significantly reduce your taxable income while simultaneously bolstering your retirement savings.

As we navigate through March, I challenge each of you to seize this opportunity and prioritize your retirement contributions. It’s essential to view these contributions not only as a means of helping to secure your financial future but also as a strategic tool for minimizing your tax liabilities.

Remember, when it comes to wealth-building and tax optimization, every dollar saved counts. Let’s make the most of this March challenge and set ourselves up for financial success in the years to come.

Thank you for entrusting us with your financial well-being, and remember, we’re here to help you every step of the way.

Paul Allen, CFP®, MS
President and CEO, Wealth Strategies Partners

Any opinions are those of Paul Allen and Wealth Strategies Partners and not necessarily those of Raymond James.  This information is intended to be educational and is not tailored to the investment needs of any specific investor.  The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Neither Raymond James Financial Services nor any Raymond James Financial Advisor renders advice on tax issues, these matters should be discussed with the appropriate professional. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC.  Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Wealth Strategies Partners is not a registered broker/dealer and is independent of Raymond James Financial Services. Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

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